by GST or Goods and Services Tax are an all-inclusive tax levied on sellers, manufacturers, and consumption of goods as well as services across India. Considering the fact as to what is CGST, SGST, and IGST, it should be known that the first one is the tax on goods and services by the central government; while, the second one is by the state government. On the other hand, the IGST is the tax applied to goods and services imported from other states or countries in India.
As a part of GST, a lot of sales within the state will be levied with two taxes – CGST and SGST. The CGST share will be collected by the central government of India; while, the share is taken by the particular state’s government. It should be noted that a transaction of the sale taking place outside the state will have only IGST as it is imported from the other state. The GST is said to be a consumption-based tax, which calls for taxes on the goods and services consumed by the residents of the Indian Country. On the other hand, integrated GST is calculated to confirm the unified flow of input tax credit from one state to another.
When it comes to the matter of settling the tax-related matters, every state’s government has to communicate with the central government and not the authorities of any other state. This makes the tax dealing process easier. A variety of indirect taxes related to Central Excise Duty, Service, Central Sales CST, added excise duties, Countervailing or Custom Duty, Special Additional Duty of customs, and cesses are combined with CGST. In SGST, the taxes such as VAT, State Sales Tax, Entertainment Tax, Luxury Tax, Taxes on lottery, or gambling, Entry tax, State Cesses and Surcharges related to supply of goods and services, etc. are combined.
Enabling GST Features in Tally:
- The foremost step is to go to the gateway of tally > F11: Features > F3: Statutory and Taxation.
- Further to this, enable goods and service tax (GST), and set or alter GST details will appear. You need to select both of them.
- Then, another screen will appear with the possibility of setting GST details of the company like the state where the company is registered, its registration type, and the GSTIN number.
- Finally, you need to press Y or enter to accept the details and save it.
Tally ERP 9 is a comprehensive enterprise software developed for small and medium companies. It is much famed as a perfect business administration solution and GST software with an ideal blend of function, control, and in-built alterations. The purpose of the software is to allow business owners and their companions to deal more in accounts related negotiations. With this software as a part of your business process, handling finances, inventory, accounting, taxation, payrolls, and costing can be done more naturally.
