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Interstate and Intra state Stock transfer in GST regime in Tally

Interstate and Intra state Stock transfer in GST regime in Tally

Interstate and Intra state 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 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:

 

Intrastate debtor under GST regime

Ledger Sundry debtor

  • Got to 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

sundry debtor in GST

Local sale  under GST in Tally

  • Got to gateway of tally > accounts info > ledger > create
    In name field type Sale local (if 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

Local sales under GST

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

  • Got to 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

cgst ledger in GST

Similarly, creates ledger SGST

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

  • Got to 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 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 in GST regime

Ledger Sundry debtor for interstate sale

  • Got to 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

 

See also how to create invoice under GST in Tally

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