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Interstate and Intra state Stock transfer in GST regime in Tally

Interstate and Intrastate Stock transfer in GST regime in Tally

Under GST, levy of tax is on supply which includes transfers to distinct persons, and transfers are taxable under the following two cases:

 

  • Intrastate stock transfer: Taxable only when the entity has more than one registration in one state. These entities will be considered as ‘distinct persons’.Otherwise Hence no GST will be levied on such transactions under section 9 of CGST Act.
  • Interstate stock transfer: Transfer between two branches/units located in different states under the same PAN will be taxable. Hence IGST will be levied in such type of transaction of Section 5 under the IGST Act.

GST is levied on the transaction value when a price is a sole consideration received for supply and when supply is not between related or distinct persons. As a result, on stock transfer, the transaction value cannot be applied since it is a supply between 2 branches of the same entity, which is referred to as a distinct person. Hence, for stock transfers, the value of supply should be calculated by applying the following metrics:

 

An intrastate debtor under GST regime

Ledger Sundry debtor

  • Got to the gateway of tally > accounts info > ledger > create
    In name field type: Adi
  • now under select >sundry Debtor
  • maintain bill wise detail: yes
  • inventory value is affected >No
  • In mailing, detail Fill all the detail of Adi
  • Pan/IT No: to be filled
  • set/alter :yes
  • Registered: regular
  • GSTIN /UIN : 05AAAAA1234A1Z6 (Should be valid GSTN number)
  • Party Type: Not Applicable
  • Is an e-Commerce operator: No

Debtor in GST

Local sale  under GST in Tally

local sales under gst

  • Got to the gateway of tally > accounts info > ledger > create
    In name field type Sale local (if the purchase is intrastate )
  • now under select >sale accounts
  • inventory value is affected >yes
  • Is GST Applicable > applicable
  • Set/alt GST detail >No
  • Type of supply >Goods
  • save the changes

 

CGST ledger in GST (Central Goods and service tax under Tally

  • Got to the gateway of tally > accounts info > ledger > create
    In name field type: CGST
  • Type of duty: GST
  • Tax type: Central Tax
  • Inventory value is affected: no
  • Percentage of calculation :0%
  • rounding method: not applicable

Similarly, creates ledger SGST

SGST LEDGER UNDER GST

SGST ledger in GST (State Goods and service tax under Tally)

  • Got to the gateway of tally > accounts info > ledger > create
    In name field type: CGST
  • Type of duty: GST
  • Tax type: Central Tax
  • Inventory value is affected: no
  • Percentage of calculation :0%
  • rounding method: not applicable

When goods are sold outside the state it is called as Interstate purchase hence IGST will be charged therefore new ledger IGST will be created

Steps to create IGST ledger

  • Go to Gateway of Tally >Accounts info > leger > create
  • Name: Type IGST
  • Under: Select Duties and taxes
  • Type of duties and taxes: GST
  • Tax type: integrated GST

IGST LEDGER UNDER GST

Ledger Sundry debtor for interstate sale

  • Got to the gateway of tally > accounts info > ledger > create
    In name field type: Ravi Traders
  • now under select >sundry Debtor
  • maintain bill wise detail: yes
  • inventory value is affected >No
  • In mailing, detail Fill all the detail of Ravi trader and select state where goods are sold
  • Pan/IT No: to be filled
  • set/alter :yes
  • Registered: regular
  • GSTIN /UIN : 07AAAAA1234A1Z6 (Should be valid GSTN number)
  • Party Type: Not Applicable
  • Is an e-Commerce operator: No

 

Create Inventory in Tally ERP 9 under GST

  • Go to the gateway of tally > Inventory Info

From here we can create group, units

here we are Creating Units of measurement

  • Go to the unit of measurement > create
  • Type: Simple
  • Symbol: Nos
  • Formal Name: Number
  • Unit quantity code: NOS-NUMBERS
  • Number of decimal places : 0

Unit of measurement

After creating inventory Press ESC from the keyboard and return to Inventory info screen

Now go to stock item > Create

a new screen display type the following

  • In name Type Item 1
  • Under: Primary

set alter standard rate : YES

Note press f12 key if set alter standard rate not shown and press YES

A new screen open

  • In standard cost > In applicable from Type date 1/4/2019
  • Rate: 1000 nos will automatically be shown
  • In standard Selling cost > In applicable from Type date 1/4/2019
  • Rate: 1200 nos will automatically be shown

inventory in tally

  • Gst Applicable Set to be Applicable
  • Set/alter GST details? YES
Updated: July 25, 2019 — 12:25 pm

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