1. Draw a chart showing tax structure in India (Post GST).

2. Draw a chart and write a note on pre - GST indirect tax structure in India.
3.What was the significance of Introduction of VAT in Indirect Taxes prior to
implementation of GST. write a short note.

Value Added Tax (VAT) is a major source of revenue for all Indian states and union territories
(except Andaman and Nicobar Islands and Lakshadweep).It was introduced as an indirect tax in
the Indian taxation system to replace the existing gener al sales tax. The Value Added Tax Act
(2005) and associated VAT rules came into effect beginning April 1, 2005 in many Indian states.
Every state has its own VAT legislation, rates, taxable base, and list of taxable goods.

VAT: -

Every commodity passes through different stages of production and distribution before finally
reaching the consumer. Some value is added at each stage of the production and distribution
chain.

Under a VAT system, a dealer collects tax on his sales, retains the tax paid on his purch ase and
pays the balance to the government. It is a consumption tax, because it is borne ultimately by the
final consumer. The tax paid by the dealer is passed on to the buyer. It is not a charge on the
dealer.All business transactions involving the sales of goods/commodities carried on within a
state by individuals, partnerships, or companies will be covered by VAT.VAT will not cover small
businesses with sales below a certain limit. In Maharashtra, the limit is 10 lakes or below.

VAT computation: -

In order to understand VAT, one must first understand its two components: input and output
tax.A dealer pays VAT by deducting the tax paid on purchases (input tax) from his tax collected
on sales (output tax).In other words VAT = Output Tax – Input Tax.

 output Tax: -
Output tax is VAT charged to the customer by a dealer making taxable sales. A dealer is an
individual, partnership, or business that is registered under VAT. When a dealer is registered,
VAT becomes chargeable on all taxable sales.

 Input Tax: -
when a dealer is registered under VAT, they can normally claim a credit for VAT charges on
most business purchases. Input tax includes not only the VAT on your purchases of raw
materials or on goods purchased for resale but also VAT on capital goods, such a s machinery or
equipment.

For example: A dealer pays Rs.10.00 @ 10% on his purchase price of goods valued Rs.100.00.
He sells the goods at Rs.150.00 and collects tax amounting to Rs.15.00 (@ 10%). He will pay
Rs.5.00 (Rs.15.00- Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasing
those goods.

4.Need for GST in India.

There are various taxes that have to pay at every stage and differently collected by State and
Central Government and rates differ from one state to another , as no more additional state taxes
will be imposed. Introducing GST, will increase the efficiency of taxation, improves the economic
growth and it will bring whole nation to one national market.

What happen in present scenario? Our present taxation system is very complex and very
confusing, corruption chance is there, which leads to distrust of government, there are hidden tax
for exports, whereas no charge applicable on Importing of Goods/Services from one state to
another. Just to overcome these issues, Rajya Sabha introduced GST bill, which will bring
transparency to taxation and consumer will get to know how much tax amount they are paying to
government for sale/ purchase/ manufacturing.

Following are some of the points that can easily explain the need for GST: -

 Tax structure will be simple: - At present, there are huge number of taxes that has to
pay by consumers, with GST it will single tax to pay, which is much easier to understand.
For businesses, accounting complexities will reduce and results less paperwork, which will
save both time and money. GST will increase economic GDP by 2%-2.5%.

 Tax revenue will increase: - Simple tax structure will bring more tax payers and in
return it will be revenue for government .

 Competitive pricing: - GST will eliminate indirect taxes and the tax amount paid by end
users (consumers) will reduce. As in Economics, lower will the prices, more will be demand
for that product, results in more consumption of goods, which will be benefited to companies.

 Boost to exports: -If Indian market will be competitive in pricing, then more and more
foreign players will try to enter the market, which results in more numbers of exporters and
benefits to Indian Market. As far there is no tax rate is finalized, but yes GST is much
needed in the countries where, it lacks transparency and complex taxation system.
There is a question in everyone’s mind……” Do we have to pay tax at different rates and at
different levels? Is there no solution to this? Yes, the solution to this is implementation of
GST. GST will take away cascading effect of various taxes that are charged on sale/
production/ purchase and so. Products reaches to customers at very high rate as compared
to manufacturing, so with GST there will be only one tax and it will reduce burden to pay off.

5.what were the taxes subsumed in GST.

Taxes to be subsumed in GST:

 CENTRAL TAXES TO BE SUBSUMED IN GST:
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)

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 bod ies)
 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

TREATMENT OF SPECIFIC GOODS: -

The Central Government tabled the 122nd Constitution Amendment Bill, 2014 (‘Bill’) on the
introduction of Goods and Services Tax (GST) before the lower house of Parliament on
December 19, 2014. On analysis of the Bill, the Bill contains the following treatment for the
specific goods:
 GST would apply to all goods and services except Alcohol for human consumption.
 GST on five specified petroleum products (crude's, petrol, Diesel, AFT & Natural gas) would
be applicable from a date to be recommended by the GSTC.
 GST would be capable of being levied on the sale of newspapers and advertisements
therein. This would give the governments the access to substantial incremental revenues
since this industry has historically been tax free in its entirely.
 Tobacco and tobacco products would be subject to GST. In addition, the centre would
continue by levy Central Excise duty.
 The list of exempted goods and services would be kept to a minimum and it would be
harmonized for the Central and the States.
6. visit CBIC website and make a note of Important contents.

The Central Board of Indirect Taxes and Customs (CBIC) is the nodal national agency
responsible for administering Customs, GST, Central Excise, Service Tax & Narcotics in India.
The Customs & Central Excise department was established in the year 1855 by the then
British Governor General of India, to administer customs laws in India and collection of import
duties/land revenue. It is one of the oldest government departments of India.

Indirect Tax is levied on the person who is making the sale but he can recover the same
fro m the buyer. In some cases, the Indirect Tax portion is specifically mentioned in the
invoice whereas in other cases – the po rtion o f indirect t ax is auto matically included in the
transaction value and not disclosed separately. Some examples of these indirect taxes are
Service Tax, Excise Duty, Customs Duty, VAT, Entertainment Tax, Luxury Tax etc.

In India, there are many different Indirect Taxes which are applicable. For example:
Service Tax is levied on Services, Excise Duty is levied on Manufacturing, Custo ms Duty is
levied on Impo rt of Goods etc. As there are many different types of indirect ta xes levied
on the expense incurred by a buyer, the govt now intends to merge all these forms of
indirect t axes and levy a co mmon indirect t ax by the name of GST i.e., Goods and Service
Tax.
7.what are the exclusive products not included in the GST and why .

The goods and services Tax (GST) in India was implemented on July -1 -2017 even after many
months GST roll out there is much confusion on what products comes under GST and what
Not.Here is the list of products that kept outside the purview of GST 1. Anima l Feed 2. Aquatic
Feed 3. Betel leaves.

List of items exempted under GST:

The Goods and Services Tax (GST) in India was implemented on
There are certain activities which are items not covered under GST. They are beyond the scope
of GST, i.e., GST will not apply on them. These are classified under Schedule III of the GST Act
as “Neither goods nor services”.
1. Services by an employee to the employer in relation to his employment:
Related parties include employer-employee which raised many concerns whether employment
now attracted GST. This clarification has been brought in to clarify whether GST is not
applicable on employment. An employee will still pay income tax on salary earned.
2. Court/Tribunal Services including District Court, High Court and Supreme Court:
Courts will not charge GST to pass judgement.
3. Duties performed by:

 The Members of Parliament, State Legislature, Panchayats, Municipalities and other

local authorities
 Any person who holds a post under the provisions of the Constitution
 Chairperson/Member/Director in a body established by the government or a local body
and who is not an employee of the same

4. Services of a funeral, burial, crematorium or mortuary including transportation of

the deceased:
There are no taxes on funeral services for any religion.
5. Sale of land and sale of building:
Construction of a new building is subject to GST (being works contract).
6. Actionable claims (other than lottery, betting and gambling):
Actionable Claims’ means claims which can be enforced only by a legal action or a suit, example
a book debt, bill of exchange, promissory note.Bill of exchange, promissory note can be
transferred under Negotiable Instruments Act by delivery or endorsement but cannot be sold.
Actionable claims are neither products nor services. They can be considered as something in lieu
of money. So, GST will not apply on these.Lottery, betting and gambling attract 28% GST.
7. Supply of goods from a place in the non-taxable territory to another place in the
non-taxable territory without such goods entering into India.
8. Supply in Customs port before Home consumption:
(a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by an endorsement of documents of
title to the goods, after the goods have been dispatched from the port of origin located outside
India but before clearance for home consumption.

8.what are different types of taxes levied under GST.

Since GST subsumed indirect taxes of both Central government and State government both the
government depends on GST for their indirect tax’s revenue. Therefore, the GST rate is
composed of two rates. Intra -state tractions will carry one of CGST and one of SGST or CGST
and UGST (in case of union territory). Therefore, while making an intra- state sale the CGST
collected will go to the Central government and the S GST collected will go to the respective
state government which in sale is made. Similarly, SGST or UTGST are replaced with IGST
when intra-state transactions are involved.
Types of GST: -

There are four types of GST:

 Central Goods and Services Tax (CGST)

 State Goods and Services Tax (SGST)
 Integrated Goods and Services Tax (IGST)
 Union Territory Goods and Services Tax (UTGST)
 Central Goods and Service tax (CGST): -

CGST refers to the Central GST tax that is levied by the Central Government of India. It is one of
the two taxes charged on every intrastate (within one state) transaction, the other one being
SGST (or UTGST for Union Territories). CGST replaces all the existing Central taxes including
Service Tax, Central Excise Duty, CST, Customs Duty, SAD, etc. The rate of CGST is usually
equal to the SGST rate. Both taxes are charged on the base price of the product. See the
example below to understand it better.

e.g. – In the example above, when Suresh sales a product to Pradeep in the same state
(Rajasthan), he has to pay two taxes. CGST is for the central government while SGST is for the
state. The rate of CGST is 9%, same as SGST. After the application of CGST (9% of Rs 10,000),
the final cost of the product will become Rs 11,800.

 State Goods and Service Tax (SGST): -

SGST (State GST) is one of the two taxes levied on every intrastate (within one state)
transaction of goods and services. The other one is CGST. SGST is levied by the state where
the goods are being sold/purchased. It will replace all the existing state taxes including VAT,
State Sales Tax, Entertainment Tax, Luxury Tax, Entry Tax, State Cesses and Surcharges on
any kind of transaction involving goods and services.

e.g. – Suresh from Rajasthan wants to sell some goods to Pradeep in Rajasthan. The product,
originally priced at Rs 10,000, will attract GST at 18% rate comprising of 9% CGST rate and 9%
SGST rate. The SGST tax amount here is Rs 900 (9% of Rs 10,000) which is fully claimed by the
Rajasthan State Government. The rate of the product after SGST will be Rs 10,900.

 Integrated Goods and Service Tax (IGST): -

Integrated GST (IGST) is applicable on interstate (between two states) transactions of goods and
services. This tax will be collected by the Central government and will further be distributed
among the respective states.IGST is in place to ensure that a state has to deal only with the
Union government and not with every state separately to settle the interstate tax amounts.

e.g., – Ramesh is a manufacturer in Rajasthan who sold goods worth Rs 10,000 to Suresh in
Rajasthan. Since it is an interstate transaction, IGST will be applicable here. Let’s assume th e
GST rate is 18% for the particular item. So, the IGST amount charged by the Central
Government will be Rs 1800 (18% of Rs 10,000), and the refined rate of the product will be Rs
11,800.

Now, GST is a consumption tax that means only the state where the goods are actually
consumed will get the tax benefits, irrespective of the manufacturing state.
 Union Territory Goods and Service Tax (UGST): -

The Union Territory Goods and Services Tax, commonly referred to as UTGST, is the GST
applicable on the goods and services supply that takes place in any of the five Union Territories
of India, including Andaman and Nicobar Islands, Dadra and Nagar Haveli, Chandigarh,
Lakshadweep and Daman and Diu. This UTGST will be charged in addition to the Central GST
(CGST) explained above. For any transaction of goods/services within a Union Territory: CGST +
UTGST

Delhi and Puducherry UTs already have their own legislatures, so SGST is applicable to them.

9.Briefly explain the important components of Supply.

Under GST, three 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.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
 1. 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.
 Time of supply of goods is earliest of:
I. Date of issue of invoice
II. Last date on which invoice should have been issued
III. Date of receipt of advance/ payment.
 Time of supply of services is earliest of:
I. . Date of issue of invoice
II. . Date of receipt of advance/ payment.
III. Date of provision of services (if invoice is not issued within prescribed period)
 Reverse charge the time of supply for service receiver is earliest of:
I. Date of payment
II. 30 days from date of issue of invoice for goods (60 days for services)
2.Place of supply: -
Value of supply is required for determining the right tax to be charged on the invoice, whether
IGST or CGST/SGST will apply.
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

 place of supply is where the goods are delivered:

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.
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.
 place of supply of services in location:
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

Example:
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.
3. Value of supply: -
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 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.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.
10. Brief Registration Process of GST
If you are a regular dealer or a composite tax payer, you need to do the following for
GST registration:

Fill Part-A of Form GST REG-01. Provide your PAN, mobile number, and E-mail ID, and submit
the form.

o The PAN is verified on the GST Portal. Mobile number, and E-mail ID are verified with a
one-time password (OTP).
o You will receive an application reference number on your mobile and via E-mail.
o Fill Part- B of Form GST REG-01 and specify the application reference number you
received. Attach other required documents and submit the form. Following is the list of
documents to be uploaded –
o Photographs: Photographs of proprietor, partners, managing trustee, committee
etc. and authorized signatory
o Constitution of taxpayer: Partnership deed, registration certificate or other
proof of constitution
o Proof of principal / additional place of business :
 For own premises: Any document in support of the ownership of the
premises like latest property tax receipt or Municipal Khata copy or copy
of electricity bill.
 For rented or leased premises: copy of rent / lease agreement along
with owner’s (landlord) documents like latest property tax receipt or
Municipal Khata copy or copy of electricity bill.
o Bank account related proof: Scanned copy of the first page of bank pass book
or bank statement.
o Authorization forms: For each authorized signatory, upload authorization copy
or a copy of resolution of managing committee or board of directors in the
prescribed format.
o If additional information is required, Form GST REG-03 will be issued to you. You need
to respond in Form GST REG-04 with required information within 7 working days from
the date of receipt of Form GST REG-03.
o If you have provided all required information via Form GST REG-01 or Form GST REG-
04, a certificate of registration in Form GST REG-06 will be issued within 3 days from
date of receipt of Form GST REG-01 or Form GST REG-04.
o If the details submitted are not satisfactory, the registration a pplication is rejected using
Form GST REG-05.
11. Mr. Y was travelling from Hyderabad to Bengalore flight. During his journey he
purchased some books. Determine the incidence of tax. Identify place of supply.

SEC TRANSACTION OF SUPPLY PLACE OF SUPPLY

10(1)(E) Where the goods are supplied on board a The location at which such goods
conveyance including a vessel, an are taken on board.
aircraft, a train or a motor vehicle

In the above problem Mr Y purchased some books during travelling from Hyderabad to
Bangalore the place of supply is the first departure i.e. HYDERABAD. CGST AND SGST is
charged on the books purchased.

12.what is composition supply and Mixed supply. What is the rate of tax applied?

composite supply under GST: -

Composite supply means a supply is comprising two or more goods/services, which are naturally
bundled and supplied in with each other in the ordinary course of business, one of which is a
principal supply.It means that the items are generally sold as a combination.
A supply of goods and/or services will be treated as composite supply if it fulfills the following
criteria:

 Supply of 2 or more goods or services together AND

 It is a natural bundle, i.e., goods or services are usually provided together in the normal
course of business.

 They cannot be separated.

 Applying Tax Rate: -

The tax rate of the principal supply will apply on the entire supply.
Example:
 Goods are packed and transported with insurance. The supply of goods, packing materials,
transport and insurance is a composite supply. Insurance, transport cannot be done separately if
there are no goods to supply. Thus, the supply of goods is the principal supply.
Tax liability will be the tax on the principal supply i.e., GST rate on the goods.If the second
condition is not fulfilled it becomes a mixed supply.

Mixed supply under GST: -

 Mixed supply under GST means a combination of two or more goods or services made
together for a single price.
 Each of these items can be supplied separately and is not dependent on any other.

Under GST, a mixed supply will have the tax rate of the item which has the highest rate of tax.
For example-A Diwali gift box consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drink and fruit juices supplied for a single price is a mixed supply. All are also sold
separately. Since aerated drinks have the highest GST rate of 28%, aerated drinks will be treated
as principal supply and 28% will apply on the entire gift box.

Differences between mixed and composite supplies

Particulars Composite Supply Mixed supply

Main item Principal item Item with highest tax rate

Tax rate applicable Tax rate of principal item Highest tax rate of all the items

13. what are the types a dealer can opt at registration.

Every business or corporation that is involved in the buying and selling and good of services
comes under GST. It is mandatory for all whose aggregate turnover exceeds Rs. 20 lakhs
annually to register for a GST. For the North East states, J&K, Himachal Pradesh and
Uttarakhand the threshold limit is Rs.10 lakhs.

Some businesses are compulsorily required to register for GST and if such organizations operate
without registering for GST, it will be an offence and due penalties apply. The same applies to
people making taxable supplies on behalf of other taxable persons, example agents and
brokers.The following taxable groups are eligible for GST registration:

 Persons who are required to pay tax under Reverse Charge.

 Persons who are required to deduct tax at source.
 Non-resident taxable person (No fixed place in India).
 Casual taxable person (No fixed place where GST is applicable).
 All e-commerce operators (e.g. Flipkart, Amazon).
 All agents of a supplier.
 Persons who supply goods or services through e-commerce operator.
 Input Service Distributor.
 An aggregator who supplies services under his brand name.
 Any Specialized Agency of the UN or any Multilateral Financial Institution.
 Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra).
 All taxable individuals registered under Excise, VAT, Service tax, etc.
 The place of supply is important for determining the taxability. All individuals, from
outside India, supplying access and retrieval services for online information and database
to persons in India, other than a registered taxable person.

GST threshold: -
Companies with a supply turnover of over Rs. 20 lakh must register for GST. The keyword here
is “supply”, which takes into consideration any turnover, including stock-taking, discounts and
freebies. In fact, even those supplying non-taxable goods must register for GST. A business
making sales to other states must register for GST, regardless of turnover.

14. Draw a specimen of Invoice, Tax Invoice and Bill of Supply.

15. What is Supplementary Invoice.

What are supplementary invoices and their uses? Supplementary tax invoice is a type
of invoice that is issued by a taxable person in case where any deficiency is found in a
tax invoice already issued by a taxable person. It can be in form of a debit note or a cred it note.

16. with help of diagram show Input credit Mechanism.

17. List out masters to be created to effect GST in tally.
Go to Gateway of Tally > Create company > Press F11 Configuration > Press F3
Statutory and Taxation Screen Appears

Set “ Yes” to Enable Goods and Services Tax(GST).

Set “yes” to set/Alter GST details ( GST details screen Appears) in statutory and taxation page.
Press Cntrl +A to save.

18. Write the steps for filing GSTR-1, GSTR-2, GSTR-3.

1. Login to www.gst.gov.in.
2. Go to Dashboard –> My profile –> Manage API Access.
3. Select ‘Yes’ corresponding to ‘Enable API Request’.
4. Select the ‘Duration’ as 30 days, and click Confirm.
1. Start Working On GSTR 1:
Login to your Profit Books account and go to GST –> GST Returns.
Click on ‘GSTR-1’.
2. Upload Invoices To GSTN:
Review the invoices and click on ‘Upload Data’ button.

3. Verify The Uploaded Invoices:

Click on ‘GSTR-1 Summary’ to verify the data. You can login to GSTN portal and
verify if all the invoices are uploaded correctly.
4. Submit GSTR-1:
Once you review the uploaded invoices, you can proceed to finally submitting the GSTR -
1. Please note that its a final step and you won’t be able to make changes once the
return is filed.
Please follow these steps to submit the return:
1) Login to www.gst.gov.in.
2) Go to ‘Services’ –> ‘Returns’ and then click on ‘Returns Dashboard’.
3) Select the return filing period.
4) Choose ‘Prepare Online’ mode
5. Select the checkbox, submit and choose a signing method and file GSTR-1
19. What types of GST Returns, E – Commerce operators need to file.
 Return Forms under GST for E-commerce Sellers
Return/Form Details Frequency Due Date

10th of next
GSTR – 1 Outward sales by seller Monthly
month

15th of next
GSTR – 2 Purchases made by seller Monthly
month

GST Monthly return along with 20th of next

GSTR – 3 Monthly
the payment of tax month

GST Return for E-commerce 10th of next

GSTR – 8 Monthly
Operator month

31st Dec of next

GSTR – 9 GST Annual Return Yearly
financial year

20.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.

1. Open Tally ERP9 and create an imaginary Company.

2. Enable GST Features by pressing F11statutory and Taxation  GSTGST Details.
3. Go to Gateway of Tally Accounting Info Ledger Single Create. The following ledgers are
to be created:

Name of Ledger Under

Sales Ledger Sales Account
Purchase ledger Purchases account
Dealer name account Sundry Debtor
INPUT CGST@2.5% AND INPUT Duties and Taxes
SGST@2.5% AND OUTPUT
CGST@2.5% AND OUTPUT
SGST@2.5%
Raj account Sundry creditor

4. Create stock items: gateway of Tally Inventory Info Stock Items Create. While creating
stock item, set GST rate as CGST AND SGST -5% (given) divided equally.
5. Go to Gateway of Tally Accounting Vouchers F9 for purchases and F9 for sales
6. Enter the transaction setting the party name as DEALER NAME ACCOUT in purchase vou cher
and RAJ account in sales voucher. Enter input CGST and SGST in purchase voucher and output
CGST and IGST in case of sales voucher.
7. Go to Gateway of Tally  Display Statutory Reports GST GSTR 3B.
 21. Mahesh Enterprises of Hyderabad purchased goods from Ashish Enterprises of
Chennai, he paid GST @ 28%. Record the transaction in Accounting software.

1. Open Tally ERP9 and create a Company “Mahesh enterprises”.

2. Enable GST Features by pressing F11statutory and Taxation  GSTGST Details.
3. Go to Gateway of Tally Accounting Info Ledger Single Create. The following ledgers are
to be created:

Name of Ledger Under

Purchases Purchases Account
Ashish enterprises Chennai Sundry Creditor(interstate dealer)
INPUT IGST@28% Duties and Taxes

4. Create stock items: gateway of Tally Inventory Info Stock Items Create. While creating
stock item, set GST rate as IGST -28% (given).
5. Go to Gateway of Tally Accounting Vouchers F9.
6. Enter the transaction setting the party name as Ashish enterprises interstate dealer.
7. Go to Gateway of Tally  Display Statutory Reports GST GSTR 3B.

22. 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?

1. Open Tally ERP9 and create a Company.

2. Enable GST Features by pressing F11statutory and Taxation  GSTGST Details.
3. Go to Gateway of Tally Accounting Info Ledger Single Create. The following ledgers are
to be created:

Name of Ledger Under

Sales Ledger Sales Account
Discount Indirect Expense
Y Ltd Sundry Debtor
IGST Duties and Taxes

4. Create stock items: gateway of Tally Inventory Info Stock Items Create. While creating
stock item, set GST rate as IGST -18% (given).
5. Go to Gateway of Tally Accounting Vouchers F8.
6. Enter the transaction setting the party name as Y Ltd.
7. Go to Gateway of Tally  Display Statutory Reports GST GSTR 3B.

23. Create 5 stock items with GST @ zero tax rate, @ 5%, @12%, @18%, record interstate
purchase and sale transactions. Show the details of input tax credit.

1. Open Tally ERP 9 and Create a Company.

2. Enable GST Features by going to F11 Features Statutory and Taxation GSTGST Details.
3. Go to Gateway of Tally Accounting Info LedgerSingle Create. The following ledgers are
to be created:
 Name of Ledger Under
Inter state purchases Purchases Account
Inter state sales Sales account
Party name Sundry Creditor
Party name Sundry debtor
INPUT IGST @5% Duties and Taxes
OUTPUT IGST @5% Duties and Taxes
INPUT IGST @12% Duties and Taxes
OUTPUT IGST @12% Duties and Taxes
OUTPUT IGST@18% Duties and taxes
INPUT IGST@18 Duties and taxes

4. Go to Gateway of TallyInventory Info Stock Items Create the following stock items:

Name of the Ledger UNIT OF MEASURE

HEARING AIDS NUMBERS
SPICES KGS
DESKTOP P.C Numbers
TOOTH PASTE numbers

While creating stock items set the following tax rates:

Hearing aids-0%,spices-5%, desktop pc -12%, tooth paste-18%

5. Go to Gateway of TallyAccounting Vouchers F9. Enter the Purchase transaction.

6. Go to Gateway of Tally Accounting VouchersF8. Enter the Sale Transaction.
7. Go to Gateway of Tally  Display Statutory Reports GST GSTR 3B to view input tax
credit

24. M/s Pooja sold250 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.

1. Open Tally ERP9 and create a Company.

2. Enable GST Features by pressing F11statutory and Taxation  GSTGST Details.
3. Go to Gateway of Tally Accounting Info Ledger Single Create. The following ledgers are
to be created:

Name of Ledger Under

Sales Ledger Sales Account
Discount allowed Indirect Expense
M/S RAJ Sundry Debtor
OUTPUT CGST@9% Duties and Taxes
OUTPUT SGST@9% Duties and taxes

4. Create stock items: gateway of Tally Inventory Info Stock Items Create. While creating
stock item, set GST rate as IGST -18% (given).
5. Go to Gateway of Tally Accounting Vouchers F8.
6. Enter the transaction setting the party name as m/s raj
7. Go to Gateway of Tally  DisplayAccount Books>Ledger>discount allowed and GST TAX
LEDGER.
 25. Purchased goods from registered dealer M/s Modern, Rs. 50000andRs. 5000 was paid
as advance , Purchased goods from unregistered dealer M/s. Ram Rs. 40000. Purchased
goods from inter state dealer M/s Jyothi, Rs. 75000. Goods returned to M/s Jyothi Rs.5000,
after raising tax invoice. Record Inward supplies in Tally.

1. Open Tally ERP9 and create a Company.

2. Enable GST Features by pressing F11statutory and Taxation  GSTGST Details.ENABLE
TAX LIABILITY ON REVERSE CHARGE TO YES
3. Go to Gateway of Tally Accounting Info Ledger Single Create. The following ledgers are
to be created:

Name of Ledger Under

SBI BANK BANK ACCOUNT
INPUT CGST@9% Duties and taxes
Input sgst@9% Duties and taxes
Input igst@12% Duties and Taxes
Interstate purchases Purchases
m/s jyothi Sundry creditor
M/S MODERN SUNDRY CREDITOR
M/S RAM SUNDRY CREDITOR
REG PURCHASES PURCHASES
UNREG PURCHASES PURCHASES

4. Create stock items: gateway of Tally Inventory Info Stock Items Create. While creating
stock item, set GST rate as CGST-6%, AND SGST-6%, IGST -12% (ASSUMED).
5. Go to Gateway of Tally Accounting Vouchers F9
6. Go to Gate way of TallyAccounting VouchersF5 (Set under Nature of Transaction as
Advance payment under reverse Charge).
7. Enter the transaction setting the party name as M/S JYOTHI/M/SMODERN/M/S RAM
8. Go to Gateway of Tally  Display Statutory Reports GST GSTR 2.
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