Mallarpur YCTC

Calculation of GST ( IGST, CGST & SGST)

Example 1 : The following Transaction has been done by the Swayam Education Pvt. Ltd. Based on this transaction compute the
GST payable to the Government.
1. Purchase from Raj Infotech-Local Dealer, 5 CDs of Antivirus Software @ Rs. 800 each, with Input GST rate @ 18%. i.e. Rs..
720 - [ CGST (9%) Rs.360 and SGST (9%) Rs.360 ]
2. Purchase from Microtek India Ltd.-Local Dealer , 10 Monitors @ Rs. 4000 each, with Input GST @ 28% i.e. Rs.11,200 – [
CGST (14%) Rs.5600 and SGST (14%) Rs. 5600. ]
3. Purchase 2 ‘Hp-Laptop’ @ Rs. 45,000 with Input IGST @ 18% i.e. Rs. 16,200.and 2 Mi-Note 4 Mobiles @ Rs. 10,000 each
with Input IGST 12% i.e. Rs.2,400 – in Cash from Outside State – West Bengal from Registered Dealer ( with GSTN –
22AAAAA0000A1Z5 ) .
4. Sale of 5 Antivirus Software CDs @ Rs.1500 to Rajib Roy & Sons with output GST 18% i.e. Rs. 1350 – [CGST (9%) Rs. 675
and SGST (9%) Rs.675 ]
5. Sale of 10 Monitors @ Rs.4500 , to H. Goenka Traders with Output GST @ 28% i.e. Rs. 12600 – [ CGST (14%) Rs. 6300 and
SGST (14%) Rs. 6300 ]
6. Sale of 2 ‘Hp-Laptop’ @ Rs 50,000 with Output GST @ 18% i.e. Rs.18,000 [ CGST (9%) Rs.9,000 and SGST (9%) Rs.9,000 ]
in Cash within State
7. 2 Mi-Note 4 Mobiles Outside State @ Rs. 15,000 each with Output IGST 12% i.e. Rs. 3600 in Cash to a Party in Outside
State i.e. Andhra Pradesh.
Solutions :

For PURCHASE & PAYMENT : IGST CGST SGST

For Transaction 1 : GST paid to party on assessable value

360 360
of Rs.4,000 @ 18 % GST is Rs. 720

For Transaction 2 : GST paid to Party on the assessable

5600 5600
Value of Rs. 40,000 @ 28% GST is Rs. 11,200

For Transaction 3 : IGST paid on the assessable Value of

Rs. 90,000 @ 18% GST is Rs. 16,200 & Rs. 20,000 @ 12% 18600
GST is Rs. 2,400 [ 16200+2400]
Total of Input GST [ IGST, SGST & CGST] 18600 5960 5960
For SALES :

For Transaction 6 : GST received from Party on assessable

675 675
value of Rs. 7,500 @ 18% GST Rs. 1350

For Transaction 7 : GST received from Party on assessable

6300 6300
value of Rs. 45,000 @ 28 % GST Rs. 12600

For Transaction 8 : GST received on the assessable Value

9000 9000
of Rs. 1,00,000 @ 18% GST is Rs. 18,000.

For Transaction 9 : IGST received on the assessable Value

of Rs. 30,000 @ 12% IGST is Rs.3600 for sale outside 3600
State.
Total Output GST [ IGST, SGST & CGST] 3600 15,975 15,975

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2- Table of GST Adjustment with Journal Voucher Entries
Particulars IGST CGST SGST

Output GST Liability 3600 15,975 15,975

Less : Input GST Credit

Input CGST 5960

Input SGST 5960

Input IGST 3600 10015 4985

Amount Payable i.e SGST only NIL NIL 5030

Any IGST credit will first be applied to set off IGST and then CGST.
Balance if any will be applied to setoff SGST.
So out of total input IGST of Rs. 18,600, firstly it will be completely setoff against IGST i.e. 3600. Then balance Rs.15,000 against
CGST i.e. Rs. 10015 and remaining Balance of Rs. 4985 against SGST
From the total Output GST Rs.35,550, only Output SGST of Rs. 5030 is payable.
So the Set-Off Entries will be -
1. Setoff against CGST Output
Output CGST A/c Dr. ……… 15975
To Input CGST A/c 5960
To Input IGST A/c 10015
2. Setoff against SGST Output
Output SGST A/c Dr. ……… 15975
To Input SGST A/c 5960
To Input IGST A/c 4985
To Output SGST Payable A/c 5030
3. Setoff against IGST Output
Output IGST A/c Dr. ……… 3600
To Input IGST A/c 3600
4. Final Payment of Output SGST Payable of Rs. 5030
Output SGST Payable A/c Dr. ……… 5030
To Bank A/c 5030

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3- How to Activate GST for your Company in Tally.ERP9
To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Once activated, GST-related features are available
in ledgers, stock items, and transactions, and GST returns can be generated.
To activate GST
1. Open the company for which you need to activate GST.
2. Press F11 > F3.

3. Enable Goods and Services Tax (GST) - Yes.

4. Set/alter GST details - Yes.

State: Displays the state you have selected for your company. Helps in identifying local and interstate transactions. If you change
the state, it will be updated in the company details.
5. Specify the GSTIN/UIN for the business. This can be printed in the invoices as required. You can specify this later.
6. Specify Applicable from date. GST will be applicable for your transactions from this date onwards.
You can record transactions using the ledgers with GST details, and print invoices with GSTIN.

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7- Creating a Purchase Ledger : GST-Purchase @ 18% in Tally.ERP9
To Create a Purchase Ledger i.e. GST - Purchase @ 18%
● Follow the steps used for Creating the Sales Ledger i.e. GST-Sales as above, with the nature of transaction and rates for
purchase.

While recording a sale or purchase transaction, you can select the respective ledger.

Similarly…you can create all following Purchase Ledgers as per our Practical Examples by specify the Tax Rate and other GST
details as above
 GST- Purchase @ 28%
 GST- Purchase @ 12%

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11- How to Creating GST Ledgers - CGST-SGST-IGST in Tally.ERP9
To account for the different taxes to be paid under GST (central tax, state tax, union territory tax, integrated tax, and cess), you
have to create a tax ledger for each tax type.
In our above Practical Examples….the following GST Ledgers will be created :
i. Input SGST [ State Tax at the time of Purchase Locally ]
ii. Input CGST [ Central Tax at the time of Purchase Locally ]
iii. Input IGST [ Integrated Tax at the time of Purchase from Outside State ]
iv. Output SGST [ State Tax at the time of Sale Locally ]
v. Output CGST [ Central Tax at the time of Sale Locally ]
vi. Output IGST [ Integrated Tax at the time of Sale in Outside State ]
i. To create ‘Input SGST’ ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2. In Under, select Duties & Taxes.

3. Select GST as the Type of duty/tax.
4. Select State Tax as the Tax type.
Note : Percentage of Calculation should be 0% ( Don’t Change ) due to multiple Tax Rate
Similarly, you can create ledgers of all above 5 GST Ledgers ( ii to vi ) by selecting the relevant Tax type under GST.

ii. To create ‘Input CGST’ ledger

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

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2. In Under, select Duties & Taxes.

3. Select GST as the Type of duty/tax.
4. Select Central Tax as the Tax type.
Note : Percentage of Calculation should be 0% ( Don’t Change ) due to multiple Tax Rate

ii. To create ‘Input IGST’ ledger

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2. In Under, select Duties & Taxes.

3. Select GST as the Type of duty/tax.
4. Select Integrated Tax as the Tax type.
Note : Percentage of Calculation should be 0% ( Don’t Change ) due to multiple Tax Rate

Similarly, you can create ledgers of all above 5 GST Ledgers ( ii to vi ) by selecting the relevant Tax type under GST

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12- Creating Party Ledgers such as Suppliers, Customers and so on for GST in Tally.ERP9

You need to create party ledgers to record business transactions with various parties such as suppliers, customers, and so on.
On this page as per our Practical Examples ….

 Supplier Ledger :

>> Raj Infotech

>> Microtek India Ltd.

 Customer Ledger

>> Rajib Roy & Sons

>> H. Goenka Traders
Supplier Ledger

To create a supplier ledger i.e. Raj Infotech

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the supplier's ledger i.e. Raj Infotech .
3. Select Sundry Creditors from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to No,.
5. In Mailing details, the State is your default local State. You can change name of State from the State List if your Suppliers
belongs to Outside State.

6. Enable the option Set/Alter GST Details? to open the GST Details screen.

o Select the relevant Registration Type from the List of registration Types.
o Enter the 15-digit GSTIN or UIN issued by the tax authority.
o If the supplier is an e-commerce operator, then enable the option Behave as e-Commerce Operator?
The GST Details screen appears as shown below:

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o Press Ctrl+A to accept.

The Ledger Creation screen appears as shown below :

8. Press Enter to save.

Similarly…. Create the Supplier Ledger ‘ Microtek India Ltd. ‘ as per above ,
Customer Ledger

To create a Customer ledger i.e Microtek India Ltd.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the supplier's ledger i.e. Mircrotek India Ltd. .
3. Select Sundry Debtors from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to No.
5. In Mailing details, the State is your default local State. You can change name of State from the State List if your Suppliers
belongs to Outside State.

6. Enable the option Set/Alter GST Details? to open the GST Details screen.
o Select the relevant Registration Type from the List of registration Types.
o Enter the 15-digit GSTIN or UIN issued by the tax authority.
o If the supplier is an e-commerce operator, then enable the option Behave as e-COmmerce Operator?

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The GST Details screen appears as shown below:

o Press Ctrl+A to accept.

The Ledger Creation screen appears as shown below:

8. Press Enter to save.

Similarly…. Create the Customer Ledger ‘H. Goenka Traders ‘ as per above ,

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9- Creating a Inter-State Sales Ledger : GST-Inter-State Sales ( Outside State Sale ) in Tally.ERP9

To Create a Inter-State Sales Ledger i.e. GST-Inter-State Sales

● Follow the steps used for creating or updating the sales ledger i.e. GST-Sales in Previous Topics .
To Create a Sales Ledger i.e. GST-Inter-State Sales
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the Sales ledger i.e. GST-Inter-State-Sales
3. Select Sales Account from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to Yes ,.
5. Is GST Applicable - Applicable.

6. Set/alter GST Details - No,

Don’t specify the details in the GST Details because GST Rate specified in all Items (specified above) will automatically Calculate
the IGST ,.

7. Select the Type of supply. By default the type of supply is set to Goods.

8. Press Ctrl + A to save.

[ Note : Only one Ledger i.e. GST-Inter-State Sale will be created for all type of IGST Sales ]

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17- Ledgers for any Indirect Expenses like… Discount on Sale, Packing Charges etc. can be created and to be included in GST
Sale Invoice under Tally.ERP9
To create a Discount on Sale Ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the ledger i.e. Discount on Sale.
3. Select Indirect Expenses as the group name in the Under field.
4. Set the option Inventory Values are affected to No.
5. Set the option Is GST Applicable? to Not Applicable.

6. Select GST in the Include in assessable value calculation for: field.

7. Select Goods in the Appropriated to field.

7. Select Based on Value in the Method of Calculation field.

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8. Press Enter to accept and save the ledger.

9. Example of GST Sales Invoice having Discount on Sale & Packaging Charges as below…

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

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Note : Packing Charges and Discount on Sale is calculated Proportionately on the basis of Value of Goods.

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