Simplified Management of GST and Service Tax in Tally Prime


GST:

  • GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services at each stage of the production and distribution chain.
  • It is designed to replace multiple indirect taxes that were previously imposed by the central and state governments.
  • The primary goal of GST is to create a more efficient and transparent taxation system.

Service Tax:

  • Service tax in India is levied as an indirect tax.
  • Service tax is a tax levied by the government on service providers on certain service transactions but is actually borne by the customers.
  • It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.

Rate of Service Tax in India:

  • The government periodically revises service tax rates during every financial budget session.
  • The current rate of service tax in India is 15%.
  • Any changes in these rates are usually announced by the finance minister.
  • This rate must be paid by individuals and service providers if the value of the services provided exceeds ₹10 lakh rupees in a single financial year.
  • This addition to the service tax rules does not apply to the Union Territory.
JS Enterprises
ADDRESS 20/5, Andavar complex, Kesavalu St, Kamarajanar Rd, Attur- 636102
MOBILE NO 9785621230
EMAIL jsenterprises@gmail.com
WEBSITE Jsenterprises.in

Against the Field Action to be Performed
Description Advertising services
HSN/ SAC 998361
Taxability Taxable
Integrated Tax 18%

Input tax credit to GST

01-07-23 JS Enterprises had a closing CENVAT (Service Tax Input Credit) balance of Rs. 50,000.

Central Tax
Name Central Tax
Under Duties & Tax
Type of duty/tax GST
Tax type Central Tax

Service Tax
Name Service Tax @14%
Under Duties & Tax
Type of duty/tax Service Tax
Tax Head Service Tax

Company Creation:

  • Go to Gateway of Tally.
  • Select "Company" under "Master" or press Alt + K.
  • Choose "Create Company" and fill in the following details:
  • Company Name: JS Enterprises
  • Address: 20/5, Andavar Complex, Kesavalu St, Kamarajanar Rd, Attur-636102
  • Mobile No: 9785621230
  • Email: jsenterprises@gmail.com
  • Website: Jsenterprises.in
  • Enable Goods and Services Tax (GST):
    • Under "Statutory & Taxation Features," set "Enable Goods and Service Tax (GST)" to "Yes."
    company_creation

  • Set/alter Company GST Rate and other Details:
    • Against the field "Description," enter "Advertising services."
    • HSN/SAC: 998361
    • Taxability: Taxable
    • Integrated Tax: 18%
    company_creation

  • Save the company details.
company_creation

Input tax credit to GST

01-07-23 JS Enterprises had a closing CENVAT (Service Tax Input Credit) balance of Rs. 50,000.

Input tax credit to GST:

  • Select Journal voucher or press F7.
  • Press Alt + J for the Stat Adjustment option.
  • Type of Duty/Tax: GST (Goods and Services Tax)
  • Nature of Adjustment: Increase in Input Tax Credit
  • Additional Nature of Adjustment: Others
company_creation

Entries:

  • Debit (DR): CGST (Central Goods and Services Tax) - ₹50,000
    • company_creation

  • Credit (CR): Service Tax - ITC (Input Tax Credit) - ₹50,000
    • company_creation

Explanation:

  • The debit entry represents an increase in the Input Tax Credit for CGST, indicating that the company is claiming additional CGST as Input Tax Credit.
  • The credit entry reflects the corresponding adjustment in the Service Tax - ITC ledger, ensuring that the accounting equation remains balanced.
company_creation

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