Solutions For GST

1.
Draw a chart showin tax structure in india
2. Pre GST Tax levied in India

The above flow chart states all the indirect taxes that were earlier levied both at central and state
level. India had a dual system of taxation of goods and services, which was quite different from dual
GST.
Central Government levied taxes on the following:
• Income Tax: Tax collected on the income of an individual

• Customs duties: Duties collected on the exports and imports of goods
• Service tax: Taxes gathered on various services
• Central excise: Taxes on Manufacturing of dutiable goods
State Governments levied the following taxes:
• Value Added Tax (VAT): Sales of goods involve the particular tax. The sales of the goods in
intrastate are covered by the VAT Law of that state, whereas those among the inter-state is levied by
the Central Sales Tax Act.
• Stamp duties and Land Revenue: Since land is a matter on which only State Governments can
govern, thus the Stamp duties on transfer of immovable properties are levied by State Governments.
• State Excise on Liquor and certain agricultural goods. In India, indirect taxes are in vast numbers as
there were several of taxes to be incurred on manufacture, import, and sale and even purchase in
certain cases. Further the law was governed less by the Acts and more by day to day notifications,
circulars and orders by the Governing bodies. Further there are some local indirect taxes levied like
Local Body Taxes (LBT) or Octroi
3 Write any five limitations of Pre-GST Indirect taxes
1. Increased costs due to software purchase

Businesses have to either update their existing accounting or ERP software to GST-
compliant one or buy a GST software so that they can keep their business going. But
both the options lead to increased cost of software purchase and training of employees
for an efficient utilization of the new billing software.
2. Being GST-compliant
Small and medium-sized enterprises (SME) who have not yet signed for GST have to
quickly grasp the nuances of the GST tax regime. They will have to issue GST-complaint
invoices, be compliant to digital record-keeping, and of course, file timely returns. This
means that the GST-complaint invoice issued must have mandatory details such as
GSTIN, place of supply, HSN codes, and others.
3. GST will mean an increase in operational costs

As we have already established that GST is changing the way how tax is paid, businesses
will now have to employ tax professionals to be GST-complaint. This will gradually
increase costs for small businesses as they will have to bear the additional cost of hiring
experts. Also, businesses will need to train their employees in GST compliance, further
increasing their overhead expenses.
4. GST is an online taxation system

Unlike earlier, businesses are now switching from pen and paper invoicing and filing to
online return filing and making payments. This might be tough for some smaller
businesses to adapt to.
Cloud-based GST billing software like the ClearTax GST Billing Software is definitely an
answer to this problem. The process for return filing on ClearTax GST is very simple.
Business owners need to only upload their invoices, and the software will populate the
return forms automatically with the information from the invoices. Any errors in
invoices will be clearly identified by the software in real-time, thus increasing efficiency
and timeliness.
5. SMEs will have a higher tax burden

Smaller businesses, especially in the manufacturing sector will face difficulties under
GST. Earlier, only businesses whose turnover exceeded Rs 1.5 crore had to pay excise
duty. But now any business whose turnover exceeds Rs 20 lakh will have to pay GST.
However, SMEs with a turnover uptoRs 75 lakh can opt for the composition scheme and
pay only 1% tax on turnover in lieu of GST and enjoy lesser compliances. The catch
though is these businesses will then not be able to claim any input tax credit. The
decision to choose between higher taxes or the composition scheme (and thereby no
ITC) will be a tough one for many SMEs.
6. What are the important stages in implementation of GST.

Step-1 Registration :-
Every business carrying out a taxable supply of goods or services under GST regime and
whose turnover exceeds the threshold limit which can be known in GST guidelines, if you
are applicable you will be required to register as a normal taxable person. This process is of
registration is referred as GST registration.
Now that we know who needs to register, the question arises that are there any benefits for
registration? GST registration is critical because it will enable you to avail various benefits
that are available under the GST regime. One such benefit is to avail seamless input tax
credit. Multiple taxes are being clubbed under GST and thus the cascading of taxes that is
prevailing currently will no longer be the case. Also, timely registration will help you avoid
any kind of interface with tax authorities.
Step-2 Organization realignment:–
GST is going to affect each business in one way or other, so a proper information should be
found out about the supply chain of the organization i.e. which area will be most affected by
GST and which area will be least affected and according to this proper organization
realignment should be done.
Step-3 Alignment of invoicing :–
We know how important invoices are , there importance will increase after the
implementation of GST , A tax invoice is an essential evidence to:
 support a registered person’s claim for the ITC of GST (input tax) incurred;
 trigger the time of supply as the invoice date will determine when GST is to be
accounted for by a registered person on the supply of goods and services
(accounting on invoice basis);
now there are certain guidelines that needs to be followed when making this invoices. To
know format of tax invoice please refer article “GST tax invoice”
other invoices like debit, credit notes and other accounting formats should also be aligned
according to GST requirements.
Step- 4 IT systems:
with GST comes a large number of challenges for various organization like detail record
keeping has become necessary, input credit rules are complicated, large number of
compliances ,the cost of compliance is too high for the whole supply chain , a good IT
infrastructure can help the organizations in tackling this challenges hence an updated IT
system should be put into place before GST. To know various ways in which IT can help
during GST implementations please read the article”Do you need IT system for GST? ”
Step-5 Update GSTIN to your trade network :-
GST registration is required to be obtained for each state from where taxable supplies are
being made. Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and
Services Taxpayer Identification Number (GSTIN). This number will serves as an
identification prove for businesses and have to used while making invoices, hence GSTIN of
both vendors and customers have should be found out to make invoices therefore it is
necessary for businesses to update GSTIN to Vendors and customers which will be different
Step-6 Input tax credit arrangement:–

A taxable person can accumulate credits of taxes paid and carry them forward in a return. With the
introduction of the GST, the last set of credits will have to be transferred. To do this, you must
furnish proof of his/her last return filed under the old regime. You will, therefore, need to make sure
that all input taxes paid are included in it; by doing so, you will be claiming the credit of the same
under the new regime.
For example, let’s consider July 1, 2017 as the appointed day for the GST rollout. The taxpayer must
make sure that he/she has taken into account all the stock lying on June 30, 2017 and claim input
credit during the filing of returns for the period ending June 30, 2017. The taxpayer, thus, must
ensure that all such goods and services are eligible for such a credit under the new GST law.
Step-7 Understanding various GST tools and its working :-
When GST rolls out, each registered taxpayer will get a profile created on the government’s GST
website. The taxpayer using the login credentials will be able to access all features along with a
dashboard. All the taxpayers will also get three electronic ledgers namely E-cash Ledger, E-credit
Ledger & E-liability Ledger. These ledgers will reflect the amount of tax payable, input credit balance,
and on adding money to the cash ledger the taxpayer will also be able to settle the tax liability
online.
Step-8 Monitor progress and keep your employees informed:-
Getting ready for GST compliance is a huge challenge. Companies need to keep on monitoring their
progress from time to time so as not to fall back. For this proper flow of information is required as
fast information about status can make you make right decisions at right time.
As companies take steps to get ready for GST compliance, they may encounter disruption of internal
processes. They need to take their employees into confidence and explain that this is just a
transition phase and soon they will get used to this, and things will fall into place.
Step-9 Review and validate results:-
GST is much more stringent than our old taxation system hence even when it seems that your
organization is completely prepared for GST reviewing the rules and your preparedness for GST
posses no harm. Keep reviewing may result in detection of some error which can cause the company
to dodge many difficulties in the future. Hence reviewing and validating the results will be an
important step for GST implementation. in different states.
7. What are the taxes subsumed under GST

GST is commonly described as indirect, comprehensive, broad based consumption Tax. The Dual GST which would be implemented in India
will subsume many consumption taxes. The objective is to remove the multiplicity of tax levies thereby reducing the complexity and remove
the effect of Tax Cascading. The objective is to subsume all those taxes that are currently levied on the sale of goods or provision of services
by either Central or State Government. Subsumation of large number of taxes and other levies will allow free flow of larger pool of tax credits
at both Central and State level.
1. PRINCIPLES OF TAX SUBSUMATION

The various Central, State and Local levies were examined to identify their possibility of being subsumed under GST. While identifying, the
following principles were kept in mind:
 Taxes or levies to be subsumed should be primarily in the nature of indirect taxes, either on the supply of goods or on the supply of
services.
 Taxes or levies to be subsumed should be part of the transaction chain which commences with import/ manufacture/ production of
goods or provision of services at one end and the consumption of goods and services at the other.
 The subsumation should result in free flow of tax credit in intra and inter-State levels.
 The taxes, levies and fees that are not specifically related to supply of goods & services should not be subsumed under GST.
 Revenue fairness for both the Union and the States individually would need to be attempted.
2. CENTRAL TAXES TO BE SUBSUMED IN GST
On application of the above principles and various papers which have been released in this regard, it is deduced that the following Central
Taxes should be, to begin with, subsumed under the Goods and Services Tax:
 Central Excise Duty (CENVAT)

 Additional Excise Duties
 The Excise Duty levied under the Medicinal and Toiletries Preparations (Excise Duties) Act 1955
 Service Tax
 Additional Customs Duty, commonly known as Countervailing Duty (CVD)
 Special Additional Duty of Customs – 4% (SAD)
 Surcharges and Cesses levied by Centre are also likely to be subsumed wherever they are in the nature of taxes on goods or services. This
may include cess on rubber, tea, coffee, national calamity contingent duty etc.
 Central Sales Tax to be phased out.
3. STATE TAXES TO BE SUBSUMED IN GST

Following State taxes and levies would be, to begin with, subsumed under GST:
 VAT / Sales tax

 Entertainment tax (unless it is levied by the local bodies)
 Luxury tax
 Taxes on lottery, betting and gambling
 State Cesses and Surcharges in so far as they relate to supply of goods and services
 Octroi and Entry Tax
 Purchase Tax
4. Taxes subsumed under IGST
CVD and SAD
CST
10. What are the exclusive products not included in the purview of GST.
Why?
Taxes on products not under GST
The following tax and product types are not covered under GST. Business owners making sales or purchases of these
products should make sure they understand the specific tax requirements that will still be imposed beyond GST
assessments.
 Tax on items containing alcohol
Alcoholic beverages for human consumption would be kept out of the purview of GST as an exclusion mandated by
constitutional provision. Sales Tax/VAT could be continued to be levied on alcoholic beverages as per the existing
practice. VAT is levied on alcohol purchases in some states, and there will be no objection to that. Excise duty, which is
presently levied by the states, may also be unaffected.
 Tax on Petroleum Products
The full range of petroleum products, including crude oil and motor spirits including Aviation Turbine Fuel (ATF) and
High Speed Diesel (HSD), would be kept outside GST, as is the prevailing practice in India. Sales tax could continue to
be levied by the states on these products with the prevailing floor rate. Similarly, Centre could also continue its levies. A
final opinion on whether natural gas should be kept outside the GST will be issued after further deliberations.
As for petroleum products, although the GST constitutional amendment provides for levying GST on these products, it
allows the timeframe for their inclusion to be decided by the GST Council. Therefore, in the initial years of GST,
petroleum products will remain out of the scope of GST.
The existing taxation system under VAT and the Central Excise Act will continue for both of the commodities listed
above.
Why this exclusion
VAT or sales tax on petroleum products contributes to nearly 33 percent of state revenues, and Centre also earns
significant excise duty income on the generation of petroleum products from crude oil. To protect these significant
revenue interests, both the Governments want GST to first stabilize before they allow the GST Council to consider their
inclusion.
Similarly, for alcohol, states don’t want to lose the significant revenue currently earned from state excise duty. In many
states, the revenue from state excise taxes imposed on alcohol brings in 25 percent of total revenue. For this reason,
the state excise tax on alcohol has been kept out of the constitutional mandate for levying GST.
This decision was made to provide fiscal security to states and ensure that there is a minimum guaranteed income
under the proposed GST regime.
Impact of such exclusions
Any planning for GST has to take into consideration the non-availability of credits for taxes paid on petroleum products,
though these products are inputs for most business activities. Major taxes paid on inputs won’t be eligible for ITC, so
they will remain part of the cost of production and sales, as they are now.
Such exclusions negate, to some extent, the pros of unification, giving rise to one more layer of complexity when it
comes to tax compliance for business organizations. Manual handling of these transactions can lead to wasted time and
manpower, and these calculations are prone to errors. Using automated solutions for indirect tax compliance —
including GST and all other products outside GST — is the fastest and most cost-effective way to solve this problem.
12. What are different types of taxes levied under GST.
15. What are the categories of Goods and Services for levying GST.
Types of categories under GST rate

The GST tax is levied based on Revenue Neutral Rate (RNR). For the purpose of imposing GST tax in
India, the goods and services are categorised in to four.
These 4 categories of goods and services are as follows:
Exempted Categories under GST in India.

The GST and council and other GST authorities notifies list of exempted goods. Such goods are not
fallen under payment of GST tax. The authorities may modify or amend the list time to time by
adding deleting any item if required by notification to public.
Essential Goods and Services of GST in India

Essential category of goods and services are charged very lower GST rate. Essential goods and
services are the goods and services for necessary items and items under basic importance.
Standard Goods and Services for GST in India

A major share of GST tax payers falls under this category of Standard Goods and Services. A standard
rate of GST is charged against the goods and services under this category.
Special Goods and Services for GST tax levy

Under special category of goods and services, GST rates would be high. Precious metals including
luxury items of goods and services fall under special Goods and Services for GST rate
implementation.
16. Briefly explain the important components of Supply

Time, Place and Value of Supply
Under GST, 3 types of taxes can be charged in the invoice. SGST and CGST in case of an
intra-state transaction and IGST in case of an interstate transaction. But deciding
whether a particular transaction is inter or intrastate is not an easy task.
Think about an online training where customers are sitting in different parts of the
world.
Say in case, hotel services, where the receiver may have an office in another state and
may be visiting the hotel only temporarily, or where goods are sold on a train journey
passing through different states.
To help address some of these situations, the IGST act lays down certain rules which
define whether a transaction is inter or intrastate. These rules are called the place of
supply rules.
There are three important concepts:
Importance of Time, Place and Value of Supply
1. Time of Supply
A. Supply of goods
B. Supply of services
C. Reverse charge
2. Place of supply
A. Supply of Goods
B. Supply of Services
3. Value of Supply of Goods/Service
Why are time place and value of supply important?

Time of supply means the point in time when goods/services are considered supplied’.
When the seller knows the ‘time’, it helps him identify due date for payment of taxes.
Place of supply is required for determining the right tax to be charged on the invoice,
whether IGST or CGST/SGST will apply.
Value of supply is important because GST is calculated on the value of the sale. If the
value is calculated incorrectly, then the amount of GST charged is also incorrect.
Time of Supply
Time of supply means the point in time when goods/services are considered supplied’.
When the seller knows the ‘time’, it helps him identify due date for payment of taxes.
CGST/SGST or IGST must be paid at the time of supply. Goods and services have a
separate basis to identify their time of supply. Let’s understand them in detail.
A. Time of Supply of Goods
Time of supply of goods is earliest of:

1. Date of issue of invoice
2. Last date on which invoice should have been issued
3. Date of receipt of advance/ payment*.
For example:
Mr. X sold goods to Mr. Y worth Rs 1,00,000. The invoice was issued on 15th January.
The payment was received on 31st January. The goods were supplied on 20th January.
*Note: GST is not applicable to advances under GST. GST in Advance is payable at the
time of issue of the invoice. Notification No. 66/2017 – Central Tax issued on
15.11.2017
Let us analyze and arrive at the time of supply in this case.
Time of supply is earliest of –
1. Date of issue of invoice = 15th January
2. Last date on which invoice should have been issued = 20th January
Thus the time of supply is 15th January.
What will happen if, in the same example an advance of Rs 50,000 is received by Mr. X
on 1st January?
The time of supply for the advance of Rs 50,000 will be 1st January(since the date of
receipt of advance is before the invoice is issued). For the balance Rs 50,000, the time of
supply will be 15th January.
B. Time of Supply for Services
Time of supply of services is earliest of:

1. Date of issue of invoice
2. Date of receipt of advance/ payment.
3. Date of provision of services (if invoice is not issued within prescribed period)
Let us understand this using an example:
Mr. A provides services worth Rs 20000 to Mr. B on 1st January. The invoice was issued
on 20th January and the payment for the same was received on 1st February.
In the present case, we need to 1st check if the invoice was issued within the prescribed
time. The prescribed time is 30 days from the date of supply i.e. 31st January. The
invoice was issued on 20th January. This means that the invoice was issued within a
prescribed time limit.
The time of supply will be earliest of –
1. Date of issue of invoice = 20th January
2. Date of payment = 1st February
This means that the time of supply of services will be 20th January.
C. Time of Supply under Reverse Charge
In case of reverse charge the time of supply for service receiver is earliest of:
1. Date of payment*
2. 30 days from date of issue of invoice for goods (60 days for services)
*w.e.f. 15.11.2017 ‘Date of Payment’ is not applicable for goods and applies only to
services. Notification No. 66/2017 – Central Tax
For example:
M/s ABC Pvt. Ltd undertook service of a director Mr. X worth Rs. 50,000 on 15th
January. The invoice was raised on 1st February. M/s ABC Pvt Ltd made the payment on
1st May.
The time of supply, in this case, will be earliest of –
1. Date of payment = 1st May
2. 60 days from date of date of invoice = 2nd April
Thus, the time of supply of services is 2nd April.
2. Place of supply
It is very important to understand the term ‘place of supply’ for determining the right
tax to be charged on the invoice.
Here is an example:
Location of Service Receiver Place of supply Nature of Supply GST Applicable
Maharashtra Maharashtra Intra-state CGST + SGST

Maharashtra Kerala Inter-state IGST
A. Place of Supply of Goods
Usually, in case of goods, the place of supply is where the goods are delivered.
So, the place of supply of goods is the place where the ownership of goods changes.
What if there is no movement of goods. In this case, the place of supply is the location of
goods at the time of delivery to the recipient.
For example: In case of sales in a supermarket, the place of supply is the supermarket
itself.
Place of supply in cases where goods that are assembled and installed will be the
location where the installation is done.
For example, A supplier located in Kolkata supplies machinery to the recipient in Delhi.
The machinery is installed in the factory of the recipient in Kanpur. In this case, the
place of supply of machinery will be Kanpur.
B. Place of Supply for Services
Generally, the place of supply of services is the location of the service recipient.
In cases where the services are provided to an unregistered dealer and their location is
not available the location of service provider will be the place of provision of service.
Special provisions have been made to determine the place of supply for the following
services:
 Services related to immovable property

 Restaurant services
 Admission to events
 Transportation of goods and passengers
 Telecom services
 Banking, Financial and Insurance services.
In case of services related to immovable property, the location of the property is the
place of provision of services.
Example 1:
Mr. Anil from Delhi provides interior designing services to Mr. Ajay(Mumbai). The
property is located in Ooty(Tamil Nadu).
In this case, place of supply will be the location of the immovable property i.e. Ooty,
Tamil Nadu.
Example 2:
A registered taxpayer offers passenger transport services from Bangalore to Hampi. The
passengers do not have GST registration. What will be the place of supply in this case?
The place of supply is the place from where the departure takes place i.e. Bangalore in
this case.
3. Value of Supply of Goods or Services

Value of supply means the money that a seller would want to collect the goods and
services supplied.
The amount collected by the seller from the buyer is the value of supply.
But where parties are related and a reasonable value may not be charged, or transaction
may take place as a barter or exchange; the GST law prescribes that the value on which
GST is charged must be its ‘transactional value’.
This is the value at which unrelated parties would transact in the normal course of
business. It makes sure GST is charged and collected properly, even though the full
value may not have been paid.
17. What activities are included in supply.

Definition of Supply under GST
Definition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of
goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in the course or furtherance of
business. Schedule I specified the supply.
Analysis: Supply is the term replaced for the term sale; no scope has been left for any confusion and
the definition includes every term which shall be coined as sale. Even the supply which is made or
agreed to be made without a consideration will also amount to sale.
Any transfer of title to goods is a supply of goods, transfer of right to use goods [section 4(8) of
APVAT Act, 2005], Hire purchase transactions, transfer of business assets are also brought under the
ambit of term ‘supply’ as per Schedule II.
1.Supply includes
(a)all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a person in the course or
furtherance of business,
(b)importation of service, whether or not for a consideration and whether or not
in the course or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a
consideration
2.Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to
be treated as a supply of goods or a supply of services.
Activities which are not Supply
Activities and transactions specified in Schedule III –
Services by an employee to the employer in the course of or in relation to his employment;
Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
Actionable claims, other than lottery, betting and gambling
Sale of land / Sale of building after occupation or completion will not attract GST. Thus, sale of
building before completion or before occupancy will attract GST
Such activities or transactions undertaken by the Central Government, a State Government or any
local authority in which they are engaged as public authorities, as may be notified by the
Government on the recommendations of the Council.
Deemed Supply of Goods & Services
Following matters will be treated as deemed supply of goods and services and will attract GST :
1.In case of Transfer of title in goods, OR, Right in goods, OR of undivided share in goods without
the transfer of title, OR, transfer under an agreement which stipulates that property will pass at a
future date upon payment of full consideration
2.In case of Land & Building, – Any lease, tenancy, easement, license to occupy land or building (
both for commercial or residential purpose, fully or partly)
3.Treatment or Process , which is being applied to another person’s goods is a supply
4.Transfer of Business Assets – Where goods forming part of the assets of a business are
transferred or disposed of, and are no longer forming part of business OR Where goods held for
business are put to use for any private use, in such a way, as not for business OR Where any person
ceases to be a taxable person, any goods earlier forming part of business, unless (a) the business is
transferred as a going concern to another person, or (b) the business is carried on by a personal
representative who is deemed to be a taxable person With or Without for a Consideration
5.Supply of Services – Following shall be treated as deemed “supply of Services” :
renting of immovable property;
construction of a complex, building, civil structure or a part thereof, including a complex or building
intended for a sale to a buyer, wholly or partly, except where the entire consideration has been
received after issuance of completion certificate;
Temporary transfer or permitting the use or enjoyment of any intellectual property right;
6.Composite Supply – Following shall be treated as deemed “supply of Services” :
works contract as defined in section 2 (119) of CGST Act
Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food
or any other article for human consumption or any drink ( other than alcoholic liquor for human
consumption), where such supply or service is for cash, deferred payment or other valuable
consideration.
7.Supply of goods – supply of goods by any unincorporated association or body of persons to a
member thereof for cash, deferred payment or other valuable consideration.
Inward Supply or Purchases– “Inward Supply” in relation to a person, shall mean receipt of goods
and/or services whether by purchase, acquisition or any other means and whether or not for any
consideration
Outward Supply or Sales – “Outward Supply” in relation to a person, shall mean supply of goods
and/or services, whether by sale, transfer, barter, exchange, license, rental, lease or disposal made
or agreed to be made by such person in the course or furtherance of business
Continuous Supply – Means a supply of services which is provided, or agreed to be provided,
continuously or on recurrent basis, under a contract, for a period exceeding three months with
periodic payment obligations and includes supply of such services as the Government may, subject
to such conditions, by notification, specify
18. Brief registration process of GST.

Procedure for GST Registration:
a) Details to be furnished:
Before applying for registration process, person has to declare the following:
• PAN
• Mobile number
• E-mail address
• State or UT
In Part A of FORM GST REG-01 on the Common Portal, either directly or through a Facilitation
Centre notified by Commissioner.
b) Reference Number:
On successful verification of the PAN, mobile number and e-mail, a temporary reference number
shall be generated and communicated to the applicant.
c) Application:
Using the reference number, the applicant shall electronically submit an application in Part B of
FORM GST REG-01, duly signed or verified through electronic verification code (EVC), along with
documents specified in the form.
d) Specified Documents:
The following specified documents are required to be submitted along with the application:
A. Documents required for Private Limited Company, Public Company (limited company) / One
Person Company (OPC):
i) Company documents
• PAN card of the company

• Registration Certificate of the company
• Memorandum of Association (MOA)/ Articles of Association (AOA)
• Copy of Bank Statement
• Declaration to comply with the provisions
• Copy of Board resolution
ii) Director related documents
• PAN and ID proof of directors
iii) Registered Office documents
• Copy of electricity bill/ landline bill, water bill

• No objection certificate of the owner
• Rent agreement (in case premises are rented)
B. Documents required for Limited Liability Partnerships (LLPs):
i) LLP Documents
• PAN card of the LLP

• Registration Certificate of the LLP
• LLP Partnership agreement
• Copy of Bank Statement of the LLP
• Copy of Board resolution
ii) Designated Partner related documents
• PAN and ID proof of designated partners
• Copy of electricity bill, landline bill, water bill

C. Documents required for Normal Partnerships
i) Partnership documents
• PAN card of the Partnership
• Partnership Deed
• Copy of Bank Statement
ii) Partner related documents
• PAN and ID proof of designated partners
• Copy of electricity bill / landline bill, water bill

• Documents required for Sole proprietorship / Individual
iv) Individual documents
• PAN card and ID proof of the individual

• Copy of Cancelled cheque or bank statement
v) Registered Office documents
• Copy of electricity bill/ landline bill, water bill

• Rent agreement ( in case premises are rented)
D. Acknowledgement:
On the receipt of an application, an acknowledgement shall be issued to the applicant in FORM GST
REG-02.
37.Mr. Ankur purchased goods for Rs. 8,00,000 and paid tax @ 5% from a dealer in same
locality. He sold Rs. 4,00,000 worth goods to Raj and collected tax from him. Record the
following transaction with the help of accounting Software.
In the given problem there is no inventory so we have to configure the tax rate at ledger
creation
Step 1. Create company in the name of Ankur
Gateway of Tally >Press Alt+F3>Create Company > fill the below particulars
Name: Ankur Financial Year : 1-4-2018

Address : Hyderabad Books Beginning from : 1-4-2018.
Country : India
State: Telangana
Press Ctrl + A to Save the company
Step 2. Configuration of GST in Tally
Gateway of Tally > Press F11-Company Features > Statutory &Taxation give the following
particulars
Enable Goods and Services Tax (GST) ? YES

Set / alter GST details ? Yes
State: :Telangana
Registration type : Regular
Assessee of Other Territory : No
GSTIN / UIN : 36AJCPS0057J1Z5
Applicable form : 1-4-2018.
Periodicity of GSTR-1 : Monthly
Press Ctrl+ A to Save
Step 3 Creation of Ledger Accounts.
Gateway of Tally >Accounting info > Single Ledger > Create
Name : GST - Purchase

Under : Purchase Account
Is GST Applicable ? Applicable
Set / alter GST details ? Yes and press F12 and make Yes to All columns
Description : Goods
HSN / SAC : 1234
Nature of Transaction : Purchase Taxable
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Type of Supply : Goods
Ctrl +A to save
Name : GST- Sales
Under : Sales Account
Description : Goods
HSN / SAC : 1234
Nature of Transaction : Sales Taxable
Integrated Tax : 18%
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl +A to save
Name : Supplier
Under : Sundry Creditor
State: Telangana
GSTIN/UIN : 36AADCR6508A1ZQ
Ctrl + A to save
Name : Raj
Under : Sundry Debtor
State: Telangana
GSTIN/UIN :36AABFJ9848C2Z8
Ctrl + A to save
Name : CGST
Under : Duties & Taxes
Type of Duty /Tax : GST
Tax Type : Central Tax
Ctrl + A to save
Name : SGST
Tax Type : State Tax
Ctrl + A to save
Step 4 Voucher Entry

Gate of Tally > Accounting Voucher >
Click on F9 Purchase on right side button bar or press F9

Press Alt + I to convert into Accounting Invoice. And give the below particulars
Supplier Invoice No:25 Date:1-4-18
Party Name: Supplier
Particulars Amount
GST- Purchase 800000
CGST 20000
SGST 20000
Total 840000
Ctrl + A
Click on F8 Sales on right side button bar or press F8
Reference No:1
Party Name: Raj
Particulars Amount
GST- Sales 400000
CGST 10000
SGST 10000
Total 420000
Ctrl + A
Step 5 Reports Gateway of Tally > Display > Statutory Reports > GST > GSTR3B
38. Mahesh Enterprises of Hyderabad purchased goods from Ashish Enterprises of Chennai,
he paid GST @ 28%. Record the transaction in accounting software
In the given problem there is no inventory so we have to configure the tax rate at ledger
creation
Step 1. Create company in the name of Mahesh Enterprises
Name: Mahesh Enterprises Financial Year: 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : IGST - Purchase

Description : Goods
HSN / SAC : 1234
Nature of Transaction : Interstate Purchase Taxable
Central Tax : 14%
State Tax : 14%
Cess : 0%
Ctrl +A to save
Name : Ashish Enterprises

State: Tamilnadu
GSTIN/UIN :33AAACC6106G5Z4
Ctrl + A to save
Name : IGST
Tax Type :Integrated Tax
Ctrl + A to save


Party Name: Ashish Enterprises
Particulars Amount
IGST- Purchase 100000
IGST 28000
Total 128000
Ctrl + A
Step 5 Reports Gateway of Tally > Display > Statutory Reports> GST > GSTR2> Select B2B
invoices -3, 4A
39.Create 3 stock items named milk, bread and Ice creams. Opening balances of these 3 stock items
would be milk – 10 litres, Bread– 20 Pkts and Ice creams – 25 numbers.Create 1 sundry debtor and 1
sundry creditorwithin state. Record a purchase entry of 5 liters of milk at 5% GST rate for 80 per litre,
10 Pkts of Bread for Rs.25 per pktat 5% GST rate and 30 numbers of Ice creams for 30 per Ice
creamat 18% GST rate. A sale entry 10liters of milk Rs.90 per liter, 15Pkts of Bread for Rs.40 per
pktand 35 numbers of Ice creams for 50 per Ice cream.
Step 1. Create company in the name of Mahesh Enterprises
Gateway of Tally >Press Alt+F3 > Create Company > fill the below particulars
Name: Kiran Dairy Products Financial Year: 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Step 3. Creation of Units of Measures (UOM)

Gateway of Tally > Inventory info > Units of Measures > Create
Type : Simple
Symbol :Nos
Formal name : Numbers
Unit Quantity Code (UQC) : No-Numbers
Number of decimal places : 0
Type : Simple
Symbol :Pkt
Formal name : Packet
Unit Quantity Code (UQC) : PAC- Packs
Type : Simple
Symbol :Ltr
Formal name :Liters
Unit Quantity Code (UQC) : OTH _Others
Step 4.Gateway of Tally > Inventory info > Stock Items > Create
Name: Milk
Under : Primary
Units :Ltr
GST Applicable : Applicable
Set/alter GST Details ? Yes
Description : Milk
HSN Code: 2524
Calculation type : On Value
Taxability : Taxable
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Ctrl +A to save
Name: Milk
Under : Primary
Units :Ltr
Description : Milk
HSN Code: 2524
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Opening Balance Qty : 10 Ltr Rate 80 Per Ltr Value : 800
Ctrl +A to save
Name: Bread
Under : Primary
Units :Pkt
Description : Bread
HSN Code: 4141
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Opening Balance Qty : 20 Pkt Rate 25 Per Pkt Value : 500
Ctrl +A to save
Name: Ice Cream

Under : Primary
Units :Nos
Description : Ice Cream
HSN Code: 5252
Central Tax : 9%
State Tax : 9%
Cess : 0%
Opening Balance Qty : 25Nos Rate 30 Per Nos Value : 750
Ctrl +A to save

Set / alter GST details ? NO
Ctrl +A to save
Name : GST- Sales

Ctrl +A to save
Name : Supplier
State: Telangana
Ctrl + A to save
Name : Customer
State: Telangana
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name : SGST
Ctrl + A to save
Step 6
Gateway of Tally > Accounting Voucher > Press F9 for Purchase and Press Alt + I to convert into
Item invoice give the below particulars
Supplier Invoice No .50 Date: 1-4-18

Purchase ledger: GST- Purchase
Name of Item Quantity Rate per Amount

Milk 5 ltr 80.00 Ltr 400.00
Bread 10 Pkt 25.00 Pkt 250.00
Ice Cream 30 Nos 30.00 Nos 900.00
1550.00
CGST 97.25
SGST 97.25
1744.50
Ctrl + A to save
Press F8 for Sale and Press Alt + I to convert into Item invoice give the below particulars
Reference No .1 Date: 1-4-18

Purchase ledger: GST-Sales
Name of Item Quantity Rate per Amount

Milk 10 ltr 90.00 Ltr 900.00
Bread 15 Pkt 40.00 Pkt 600.00
Ice Cream 35 Nos 50.00 Nos 1750.00
3250.00
CGST 195.00
SGST 195.00
3640.00
Press Alt+ A for Tax Analysis and press Alt F1 for detail information
Ctrl + A to Save
Step 7 Report
Gateway of Tally > Display > Statutory Report > GST > GSTR3B
40. What is the value in GST invoices when Rs. 10000 worth of goods are purchased, GST tax rate @
5%. In second invoice two purchases of Rs 5000 worth goods GST rate @ 5% and another Rs 5000
GST @ 18%. Both the transactions are intra state and show the GST Tax ledgers.
Step 1. Create company in the name of Reeha Enterprises

Name: Reeha Enterprises Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : GST – Purchase @ 5%

Description : Goods
HSN / SAC : 1234
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Ctrl +A to save
Name : GST – Purchase @ 18%
Description : Goods
HSN / SAC : 3214
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl +A to save
Name : Supplier
State: Telangana
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name : SGST
Ctrl + A to save


Particulars Amount
GST- Purchase @ 5%10000
CGST 250
SGST 250
Total 10500
Ctrl + A

Particulars Amount
GST- Purchase @ 5% 5000
GST – Purchase @ 18% 5000
CGST 575
SGST 575
Total 11150
Press Ctrl + A for Tax Analysis you will get the below screen
Press Esc and Save by press Ctrl + A
41. Mr. A sold goods to Mr. B for Rs. 20,000. Mr. A is charging packing charges of Rs. 800 and also
paying freight of Rs. 2800 from Mr. A’s premises to Mr. B’s premises. Mr. A also charged interest of
Rs. 750 for delay in payment. Determine the taxable value for levy of GST.Whether packing charges
or freight, Interstate required including in the invoice to determine taxable value? Show Tax Invoice
GST@ 12% (intra state supply).
Solution: As per GST law any additional expenses are charged in the invoice along with the stock
items the additional expenses are included in calculation of taxable value.
Step 1. Create company in the name of Mr. A Kumar
Name: Mr. A Kumar Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : GST – Sales @ 12%

Description : Goods
HSN / SAC : 1234
Central Tax : 6%
State Tax : 6%
Cess : 0%
Ctrl +A to save
Name : Packing charges

Under : Indirect Expenses
Is GST Applicable ? Not Applicable
Include in assessable value calculation for : GST
Appropriate to : Both
Method of calculation : Based on Value
Ctrl + A to save
Name : Freight Charges

Ctrl + A to save
Name : Interest for delay payment

Under : Indirect Income
Ctrl + A to save
Name : Customer
State: Telangana
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name : SGST
Ctrl + A to save

Click on F8 Sales on right side button bar or press F

Reference No:65 Date:1-4-18
Party Name: Customer
Particulars Amount
GST- Sales @ 12% 20000
Packing Charges 800
Freight Charges 2800
Interest on delay payment 750
CGST 1461
SGST 1461
Total 27272
Press Alt + A for tax analysis and press Alt + F1 for detail you will get the following screen
Press Ctrl + A
42.Mr. X sold 1000 units of goods to Mr. Y for Rs. 20,000 and total unit sold during the year
to Mr. Y after including these units is 2500 unit. As per terms of the agreement if Mr. Y is
purchasing more than 2000 unit of goods in a year then Mr. X is allowing 10% discount in all
the supplies. Assuming IGST rate is 18%. How discount will be recorded?
Here in the given problem it is understand that there are some terms and conditions between
Mr X and Mr Y. as per terms if Mr Y is purchasing more than 2000 No’s in the financial year
then he will be getting the 10% discount on all the purchases made in the whole financial
year.
The calculation of discount is below
Total discount = number of units purchase in financial year * Rate per No’s *10%
Number of units purchased = 2500
Rate per unit = 20000/1000 = 20
Total discount = 2500*20*10%
Total discount = 5000
GST is levied on Discounts also. In tally discount should be posted in Debit Note
Let we see how to post the transactions in tally
Step 1. Create company in the name of Mr A & co
Gateway of Tally > Press Alt+F3 > Create Company > fill the below particulars
Name: Mr A & co Financial Year : 1-4-2018

Country : India
State: Telangana
Gateway of Tally > Accounting info > Single Ledger > Create
Name : Turnover Discount
Set / alter GST details ? Yes press F12 and make Yes to All columns
Description : Discount
HSN / SAC : 1234
Nature of Transaction : Inter State Purchase Taxable
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl + A Save
Name : IGST
Type of duty/tax : GST
Tax type : Integrated Tax
Ctrl + A Save
Name : Mr B
Under : Sundry Creditors
Country : India
State : Delhi
GSTIN /UIN : 07AAJPK8851A1ZR
Ctrl + A Save
Step 3. Activation of Debit Note
Gateway of Tally > F11 > Inventory features >

Use debit and credit notes : Yes
Record credit notes in invoice mode : Yes
Record debit notes in invoice mode : Yes
Step 4 Accounting voucher

Gateway of Tally > Accounting Vouchers > press ctrl +F9 for Debit Note and enter the below
particulars
Original Invoice No. 1 Date : 1-4-18

Party Name : Mr B
Particulars Amount
Turnover Discount 5000
IGST 900
Total 5900
Ctrl + A Save
43. Create 5 stock items with GST @ zero tax rates, @ 5%, @12%, and @18%, record interstate
purchase and sale transactions. Show the details of input tax credit.
Goods purchased form Adish Enterprises GST No.07AAJPK8851A1ZR Delhi
Stock Item Qty Rate Gst Rate Rate Tax Total Amt
Jute 100 Kg 125 0% 12500 0 12500
Tea Powder 50 Kg 180 5% 9000 450 9450
Books 100 Nos 125 12% 12500 1500 14000
Biscuits 50 Pkt 20 18% 1000 180 1180
Paint 100 Ltr 225 28% 22500 6300 28800
57500 8430 65930
Goods purchased form Aditya Enterprises GST No.37AHLPK3851D1ZC Andhra pradesh
Stock Item Qty Rate Gst Rate Rate Tax Total Amt
Jute 75 Kg 150 0% 11250 0 11250
Tea Powder 45 Kg 250 5% 11250 562.5 11812.5
Books 90 Nos 150 12% 13500 1620 15120
Biscuits 45 Pkt 25 18% 1125 202.5 1327.5
Paint 85 Ltr 300 28% 25500 7140 32640
62625 9525 72150
Step 1. Create company in the name of Amar Enterprises
Gateway of Tally >Press Alt+F3 > Create Company > fill the below particulars
Name: Amar Enterprises Financial Year: 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Step 3. Creation of Units of Measures (UOM)

Gateway of Tally > Inventory info > Units of Measures > Create
Type : Simple
Symbol :Nos
Unit Quantity Code (UQC) : No-Numbers
Type : Simple
Symbol :Pkt
Formal name : Packet
Unit Quantity Code (UQC) : PAC- Packs
Type : Simple
Symbol :Ltr
Formal name :Liters
Unit Quantity Code (UQC) : OTH _Others
Type : Simple
Symbol : Kg
Formal name : Kilograms
Unit Quantity Code (UQC) :KGS-Kilograms
Step 4. Gateway of Tally > Inventory info > Stock Items > Create
Name: Jute
Under : Primary
Units : Kg
Description : Jute
HSN Code: 2524
Taxability :Nil Rated
Name: Tea Powder

Under : Primary
Units :Kgs
Description :Tea Powder
HSN Code: 4152
Integrated Tax : 5%
Central Tax : 2.5%
State Tax : 2.5%
Cess : 0%
Name: Books
Under : Primary
Units :Nos
Description :Colour Books
HSN Code: 4178
Central Tax : 6%
State Tax : 6%
Cess : 0%
Name: Biscuits
Under : Primary
Units :Pkt
Description :Biscuits
HSN Code: 1010
Central Tax : 9%
State Tax : 9%
Cess : 0%
Name: Paint
Under : Primary
Units :Ltr
Description :Paint
HSN Code: 4530
Central Tax : 14%
State Tax : 14%
Cess : 0%
Step 5 Creation of Ledgers accounts

Ctrl +A to save
Name : GST- Sales

Ctrl +A to save
Name : Adish Enterprises

State: Delhi
GSTIN/UIN : 07AAJPK8851A1ZR
Ctrl + A to save
Name : Aditya Enterprises

State: Andhra Pradesh
GSTIN/UIN :37AHLPK3851D1ZC
Ctrl + A to save
Name : IGST
Tax Type :Integrated Tax
Ctrl + A to save
Step6 Voucher Entry
Gateway of Tally > Accounting Voucher > press F9 for purchases and press alt+I to convert into Item
invoice mode. And give the below particulars
Supplier invoice no. 254 Date: 1-4-18

Party Name: Adish Enterprises
Purchase ledger : GST – Purchase
Stock Item Quantity Rate Amount

Jute 100 Kg 125 12500
Tea Powder 50 Kg 180 9450
Books 100 Nos 125 14000
Biscuits 50 Pkt 20 1180
Paint 100 Ltr 225 28800
57500
IGST 8430
Total 65930
Ctrl + A to save
Gateway of Tally> Accounting Voucher > press F for sales and press Alt+I to convert into Item
invoice mode. And give the below particulars
Ref No . 254 Date: 1-4-18

Party Name: Adish Enterprises
Purchase ledger : GST – Purchase
Stock Item Qty Rate Amount

Jute 75 Kg 150 11250
Tea Powder 45 Kg 250 11250
Books 90 Nos 150 13500
Biscuits 45 Pkt 25 1125
Paint 85 Ltr 300 25500
62625
IGST 9525
Total 72150
Ctrl + A to Save
Step 7 Report
Gateway of Tally > Display > Statutory Report > GST > GSTR3B
45. Mr. Ajay (Hyderabad) provides consultancy services to Mr. Vijay (unregistered, address on record
shows Tamil Nadu) and charged Rs.10000, levied GST @18%. Even provided consultancy services to
Mr. Anand (unregistered and address is not available) Rs.15000, GST @ 12%. Show the transactions
in Tally.
According to GST Law if there is any sale of services to unregistered persons in such case we have to
see the address of the service receiver if address is provided or available in the records then the place
of supply of services will be the place of residence of unregistered dealer. If the address is not
available in records the place of supply will be location of supply of service.
In the given problem services rendered to Mr. Vijay will be the interstate sale transaction because the
place of supply and receiver of service are different states and to Mr. Anand will be intrastate sale
because place of supply and receiver of suppler are same because the address is not in the record
Step 1. Create company in the name of Ajay Enterprises
Name: Ajay Enterprises Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : Consultancy services

Under : Sales
Description : consultancy service
HSN / SAC : 1234
Nature of Transaction : Not applicable
Central Tax : 9%
State Tax : 9%
Cess : 0%
Type of Supply : Services
Ctrl +A to save
Name : Mr. Vijay

State: Tamilnadu
Registration type : Unregistered
Ctrl + A to save
Name : Mr. Anand

Ctrl + A to save
Name : CGST
Ctrl + A to save
Name : SGST
Ctrl + A to save
Name : IGST
Tax Type : Integrated Tax
Ctrl + A to save

reference No:01 Date:1-4-18
Party Name: Mr. Vijay
Particulars Amount
Consultancy services 10000
IGST 1800
Total 11800
Ctrl+A to save
In the same sales voucher post another entry of Mr. Anand

Party Name: Mr. Anand
Particulars Amount
Consultancy services 15000
CGST 900
SGST 900
Total 16800
Ctrl +A to save
46. Mrs Rani, resident of Hyderabad has a Bank account and with draws money from ATM in
Hyderabad. She went on tour and withdrawn Rs50000 from ATM in Kerala. Identify place of service,
type of taxes levied in both the cases.
In the situation 1 Mrs Rani has with draws money from ATM in Hyderabad the place of service is
Hyderabad as the place of service is in Hyderabad and location of service is also Hyderabad in the
same state so the charge of tax will be CGST and SGST
In the situation 2 Mrs Rani has withdrawn Rs. 50000 from ATM in Kerala. The place of service is
Kerala. Because the service is done in Kerala and location of service is also in Kerala in the same
state so the charge of tax will be CGST and SGST (the taxes will be charged by the Kerala)
47. M/s Pooja sold 250 laptops to M/s.Raj for Rs. 50,000 each.Tax Invoice was raised. They were
given discount of Rs.5000. M/s Raj returned 250 laptops .Assuming GST rate is 18%. Show discount
and GST ledger.
In the given problem it is assumed that discount will not have any effect of GST discount is assumed
as on account.
Step 1. Create company in the name of M/s Pooja
Name: M/s Pooja Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : GST – Sales

Set / alter GST details ? No
Ctrl +A to save
Name : M/s Raj

State: Telangana
Ctrl + A to save
Name: Discount
Type of ledger : Discount
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name: SGST
Under: Duties & Taxes
Type of Duty /Tax: GST
Tax Type: State Tax
Ctrl + A to save
Step 3 Creation of Stock Items

Gateway of tally >> Inventory Info >> Units of Measure >> Create
Symbol: Nos
Formal Name : Numbers
Unit quantity code (UQC) : Nos-Numbers
Gateway of tally >> Inventory Info >> stock items >> Create
Name: Laptop
Under : Primary
Units :Nos
Description :Laptop
HSN Code: 7510
Central Tax : 9%
State Tax : 9%
Cess : 0%


Press Alt + I to convert into Item Invoice. And give the below particulars
Party Name: Raj
Activation of Debit Note / Credit Note
Gateway of Tally > F11 > Inventory features >

Use debit and credit notes : Yes
Record credit notes in invoice mode : Yes
Record debit notes in invoice mode : Yes
Step 4 Accounting voucher

Gateway of Tally > Accounting Vouchers > press ctrl +F8 for Debit Note and enter the below
particulars
48. Assume five intra state purchase and sale transactions and show Input tax credit in Tally.
Purchase:
Party Name State GSTIN Item Qty Rate Amount GST Tot. Amt
Primodia Gujarat 24AAACC6106G2Z6 computer 10 25000 250000 45000 295000
Vijay Textiles Maharastra 27AAACC6106G4ZY computer 5 25000 125000 22500 147500
Deltra Global Karnataka 29AAACC6106G1ZX computer 12 25000 300000 54000 354000
Lallu Pvt Ltd Kerala 32AAACC6106G3Z8 computer 15 25000 375000 67500 442500
Bheema & Co Tamilnadu 33AAACC6106G5Z4 computer 20 25000 500000 90000 590000
Sales
Tot.
Party Name State GSTIN Item Qty Rate Amount GST Amt
Kiran Kumar Gujarat 24AAACC6106G2Z6 computer 5 30000 125000 22500 147500
Kishore Maharastra 27AAACC6106G4ZY computer 3 30000 75000 13500 88500
Reeha Enterprises Karnataka 29AAACC6106G1ZX computer 8 30000 200000 36000 236000
Anviksha & Co Kerala 32AAACC6106G3Z8 computer 10 30000 250000 45000 295000
Kumar & Co Tamilnadu 33AAACC6106G5Z4 computer 15 30000 375000 67500 442500
Step 1. Create company in the name of Villa Computers Solutions Pvt. Ltd.
Name: Villa Computers Solutions Pvt. Ltd. Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana
Name : GST – Sales

Ctrl +A to save
Name : GST – Purchase

Ctrl +A to save
Name : Primodia
State: Gujarat
Ctrl + A to save
Name : Vijay Textiles

State: Maharastra
GSTIN/UIN :27AAACC6106G4ZY
Ctrl + A to save
Name : Deltra Global

State: Karnataka
GSTIN/UIN :29AAACC6106G1ZX
Ctrl + A to save
Name : Lallu Pvt. Ltd

State: Kerala
Ctrl + A to save
Name : Bheema & Co

State: Tamil Nady
Ctrl + A to save
Name : Kiran Kumar
State: Gujarat
Ctrl + A to save
Name : Kishore
State: Maharastra
Ctrl + A to save
Name : Reeha Enterprises

State: Karnataka
GSTIN/UIN :29AAACC6106G1ZX
Ctrl + A to save
Name : Anviksha & Co

State: Kerala
Ctrl + A to save
Name : Kumar & Co

State: Tamil Nady
Ctrl + A to save
Name : IGST
Ctrl + A to save
Step 3 Creation of Stock Items

Gateway of tally >> Inventory Info >> Units of Measure >> Create
Symbol: Nos
Unit quantity code (UQC) : Nos-Numbers
Gateway of tally >> Inventory Info >> stock items >> Create
Name: Computer
Under : Primary
Units :Nos
Description: Computer
HSN Code: 8471
Calculation type: On Value
Taxability: Taxable
Central Tax : 9%
State Tax : 9%
Cess : 0%


Press Alt + I to convert into Item Invoice. And give the particulars as below
Supplier Invoice No. : 252 Date: 1-4-18

Party name : Primodia
Purchase Ledger : GST – Purchase
Name of Item Qty Rate Amount

Computer 10 25000 250000
IGST 45000
Total 295000
Ctrl + A Save

Party name : Vijay Textiles

Computer 05 25000 125000
IGST 22500
Total 147500
Ctrl + A Save

Party name : Deltra Global

Computer 12 25000 300000
IGST 54000
Total 354000
Ctrl + A Save

Party name : Lallu Pvt Ltd

Computer 15 25000 375000
IGST 67500
Total 442500
Ctrl + A Save

Party name : Bheema & Co

Computer 20 25000 500000
IGST 90000
Total 590000
Ctrl + A Save

Press Alt + I to convert into Item Invoice. And give the particulars as below
Ref No. : 01 Date: 1-4-18

Party name : Kiran Kumar
Purchase Ledger : GST – Sales

Computer 05 30000 150000
IGST 27000
Total 177000
Ctrl + A Save
Ref No. : 01 Date: 1-4-18

Party Name : Kiran Kumar

Computer 05 30000 150000
IGST 27000
Total 177000
Ctrl + A Save
Ref No. : 03 Date: 1-4-18

Party Name : Reeha Enterprises

Computer 08 30000 240000
IGST 43200
Total 283200
Ctrl + A Save
Ref No. : 04 Date: 1-4-18

Party Name : Anviksha & Co

Computer 10 30000 300000
IGST 54000
Total 354000
Ctrl + A Save
Ref No. : 05 Date: 1-4-18

Party Name : Kumar & Co

Computer 15 30000 450000
IGST 81000
Total 531000
Ctrl + A Save
Reports
Gateway of Tally >> Display >> Statutory Reports >> GST >> GSTR3B
49. Out ward supplies, B2B, Goods sold to R dealer Rs. 120000, Goods sold to Customer (B2C)
Rs.15000, Goods sold to Interstate dealer Y Rs. 150000. Assuming GST @ 18% show the effect of
outward supplies in GST Return.
Step 1. Create company in the name of P.U Solutions Pvt. Ltd.
Name: P.U Solutions Pvt. Ltd. Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana

Name : Y Dealer
Under : sundry debtor
State: Tamil Nadu
Ctrl + A to save
Name : R Dealer
Under : sundry debtor
State: Telangana
GSTIN/UIN :36AJCPS0057SJ1Z5
Ctrl + A to save
Name : IGST
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name: SGST
Tax Type: State Tax
Ctrl + A to save
Name : GST- Sales

Description : Goods
HSN / SAC : 1234
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl + A Save
Name : IGST- Sales
Description : Goods
HSN / SAC : 1234
Nature of Transaction : Interstate Sales Taxable
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl + A save
Voucher Entry
Gateway of Tally >> Accounting Voucher

Press Alt + I to convert into Accounting Invoice. And give the particulars as below
Ref No. 1
Party Name : R Dealer
Particulars Amount
GST – Sales 120000
CGST 10800
SGST 10800
Total 141600
Ctrl + A Save
Ref No. 2
Party Name : Cash
Select GST registration type as consumer in dispatch detail
Particulars Amount
GST – Sales 15000
CGST 1350
SGST 1350
Total 1770
Ctrl + A Save
Ref No. 3
Party Name : Y Dealer
Particulars Amount
IGST – Sales 150000
IGST 27000
Total 177000
Ctrl + A Save
Reports
Gateway of Tally >> Display >> Statutory Report >> GST>> GSTR1
50. Purchased goods from registered dealer M/s Modern, Rs. 50000 and Rs. 5000 was paid as
advance, Purchased goods from unregistered dealer M/s. Ram Rs. 40000. Purchased goods
from interstate dealer M/s Jyothi. Rs. 75000. Goods returned to M/s Jyothi Rs.5000, after
raising tax invoice. Record Inward supplies in Tally.
Step 1. Create company in the name of Karunya Enterprises.
Name: Karunya Enterprises. Financial Year : 1-4-2018

Country : India
State: Telangana
particulars

State: :Telangana

Name : M/s Modern
State: Telangana
Registration Type : Regular
GSTIN/UIN :36AJCPS0057J1Z5
Ctrl + A to save
Name : Ram
State: Telangana
Ctrl + A to save
Name : M/s Jyoth

State: Maharastra
Name : IGST
Ctrl + A to save
Name : CGST
Ctrl + A to save
Name: SGST
Tax Type: State Tax
Ctrl + A to save
Name : GST- Purchase

Description : Goods
HSN / SAC : 1234
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl + A Save
Name : IGST- Purchase
Description : Goods
HSN / SAC : 1234
Nature of Transaction : Interstate Purchase Taxable
Central Tax : 9%
State Tax : 9%
Cess : 0%
Ctrl + A save
Voucher Entry
Gateway of Tally >> Accounting Voucher

Ref No. 52
Party Name : M/s Modern
Particulars Amount
GST – Purchase 50000
CGST 4500
SGST 4500
Total 59000
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Select payment voucher or press F5

Account : Cash
Particulars Amount
M/s Modern 5000
Select the method of adjustment as Agst ref and select 52
Ctrl + A save

Press F12 configuration (Allow modification of tax details for GST – Yes)
Ref No. 25
Party Name : M/s Modern
Particulars Amount
GST – Purchase 40000
Select purchase from unregistered Dealer – Taxable from classification /Nature
Total 40000
Ctrl + A Save
Ref No. 255
Party Name : M/s Jyothi
Particulars Amount
IGST – Purchase 75000
IGST 13500
Total 88500
Ctrl + A Save
Activate Debit Note and Credit Note from Gateway of Tally F11 Company Feature >>
Inventory Features >> Use Debit Note Notes and Credit Notes – YES and Record Debit
Notes in invoice – YES
Click on Ctrl + F9 Debit Note

Original invoice no . 255

Party Name : M/s Jyothi
Particulars Amount
IGST – Purchase 5000
IGST 900
Total 5900
Ctrl + A Save
Reports
Gateway of Tally >> Display >> Statutory Reports >> GST >> GSTR2

Solutions For GST

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Solutions For GST

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1.

Draw a chart showin tax structure in india

2. Pre GST Tax levied in India

Central Government levied taxes on the following:

• Income Tax: Tax collected on the income of an individual

3 Write any five limitations of Pre-GST Indirect taxes

1. Increased costs due to software purchase

3. GST will mean an increase in operational costs

4. GST is an online taxation system

5. SMEs will have a higher tax burden

6. What are the important stages in implementation of GST.

Step-2 Organization realignment:–

Step-3 Alignment of invoicing :–

Step-5 Update GSTIN to your trade network :-

Step-6 Input tax credit arrangement:–

7. What are the taxes subsumed under GST

1. PRINCIPLES OF TAX SUBSUMATION

 Central Excise Duty (CENVAT)

3. STATE TAXES TO BE SUBSUMED IN GST

 VAT / Sales tax

 Tax on items containing alcohol

 Tax on Petroleum Products

Why this exclusion

Impact of such exclusions

12. What are different types of taxes levied under GST.

Types of categories under GST rate

Exempted Categories under GST in India.

Essential Goods and Services of GST in India

Standard Goods and Services for GST in India

Special Goods and Services for GST tax levy

16. Briefly explain the important components of Supply

Why are time place and value of supply important?

A. Time of Supply of Goods

Time of supply of goods is earliest of:

B. Time of Supply for Services

Time of supply of services is earliest of:

C. Time of Supply under Reverse Charge

Location of Service Receiver Place of supply Nature of Supply GST Applicable

Maharashtra Maharashtra Intra-state CGST + SGST

A. Place of Supply of Goods

B. Place of Supply for Services

 Services related to immovable property

3. Value of Supply of Goods or Services

17. What activities are included in supply.

18. Brief registration process of GST.

• PAN card of the company

ii) Director related documents

• PAN and ID proof of directors

iii) Registered Office documents

• Copy of electricity bill/ landline bill, water bill

B. Documents required for Limited Liability Partnerships (LLPs):

• PAN card of the LLP

ii) Designated Partner related documents

• PAN and ID proof of designated partners

iii) Registered Office documents

• Copy of electricity bill, landline bill, water bill

C. Documents required for Normal Partnerships

ii) Partner related documents

• PAN and ID proof of designated partners