Mastering GST Tax Rates: Master Levels and Transaction Levels

GST Rates Stock Group Level

For Example : We deal with Hardware like USB, Keyboards, Mouse etc. which attracts GST 18% and Software like Tally, Os-windows, MS-office Package etc. which attracts GST 18%. We can create the stock group Hardware and Software and configure GST rates for each stock group.

Group Name	Stock Item Name	HSN Code
Hardware	USB	85444292
	Keyboards	84716040
	Mouse	84716060
Furniture’s	Table light lamp	94055031
	Desktop Table	94036000
	Steel Chairs	94017900

10-07-23 Lakshmi Electronics purchased the following stock item on cash from a registered dealer in Tamil Nadu.

Item	Qty	Rate
Mouse	100 Nos	200
Desktop Table	100 Nos	500

Stock Group Creation

Access Stock Group Creation:
- Go to Gateway of Tally.
- Select "Create" from the main menu.
- Choose " Inventory Master " under " Stock Groups ".
Create Stock Group for Hardware:
- Press Alt+C to create a new stock group.
- Enter "Hardware" as the Group Name.
- Specify the Taxability Type as 18%.
Create Stock Group for Furniture:
- Press Alt+C to create another new stock group.
- Enter "Furniture" as the Group Name.
- Specify the Taxability Type as 18%.
Save Changes: After entering the details for both stock groups, press Enter to save the changes.

Stock Item Creation

Access Stock Item Creation:
- Go to Gateway of Tally.
- Select "Create" from the main menu.
- Choose " Inventory Master " under " Stock Items ".
Create Stock Items for Hardware:
- Press Alt+C to create a new stock item.
- Enter the details for the first item, "USB":
  - Stock Item Name: USB
  - Under Group: Select "Hardware" from the list.
  - HSN Code: 85444292
- Enter the details for the second item, "Keyboards":
  - Stock Item Name: Keyboards
  - Under Group: Select "Hardware" from the list.
  - HSN Code: 84716040
- Enter the details for the third item, "Mouse":
  - Stock Item Name: Mouse
  - Under Group: Select "Hardware" from the list.
  - HSN Code: 84716060
Create Stock Items for Furniture:
- Press Alt+C to create another new stock item.
- Enter the details for the first furniture item, "Table light lamp":
  - Stock Item Name: Table light lamp
  - Under Group: Select "Furniture" from the list.
  - HSN Code: 94055031
- Enter the details for the second furniture item, "Desktop Table":
  - Stock Item Name: Desktop Table
  - Under Group: Select "Furniture" from the list.
  - HSN Code: 94036000
- Enter the details for the third furniture item, "Steel Chairs":
  - Stock Item Name: Steel Chairs
  - Under Group: Select "Furniture" from the list.
  - HSN Code: 94017900
Save Changes: After entering the details for all stock items, press Enter to save the changes.

Access Purchase Voucher:
- Go to Gateway of Tally.
- Select "Accounting Vouchers" from the main menu.
- Choose "F9: Purchase" to create a new purchase voucher.
Enter Purchase Details:
- Date: 10-07-23
- Supplier Invoice No: [Enter the supplier invoice number, if available]
- Party A/c Name: Select "Cash" from the list of ledgers.
Add Stock Items:
- Under Particulars, select the first item, "Mouse":
  - Qty: 100 Nos
  - Rate: Rs. 200
- Similarly, add the second item, "Desktop Table":
  - Qty: 100 Nos
  - Rate: Rs. 500
- Specify GST Details:
  - CGST: Rs. 6300
  - SGST: Rs. 6300
  - Ensure that the tax amounts are correctly calculated based on the GST rates and quantities entered for each item.
Save the Voucher:
- Verify all details entered in the purchase voucher.
- Press Ctrl+A to save the voucher.

Reports

Gateway of Taly -> Display More Reports -> GST Reports -> GSTR-2A Reconciliation

Transaction Levels

GST Rate at Transaction Level

For Example : Sri Lakshmi Electronics imported 100 Nos of Mouse from Bangladesh.

Access Purchase Voucher:
- Go to Gateway of Tally.
- Select "Vouchers" from the main menu.
- Choose "F9: Purchase" to create a new purchase voucher.
Enter Purchase Details:
- Date: [Enter the purchase date]
- Supplier Invoice No: [Enter the supplier invoice number, if available]
- Party A/c Name: Select "Cash" from the list of ledgers.
- Purchase Ledger: Select "Interstate Purchase" from the list of ledgers.
Modify GST & HSN/SAC Details:
- Set "Modify GST & HSN/SAC related details" to "Yes".
- Specify the HSN/SAC code for the Mouse item if required.
Add Stock Item:
- Under Particulars, select the item "Mouse":
  - Qty: 100 Nos
  - Rate: Rs. 100 (per unit)
Specify GST Rate Details:
- Press F12 to configure GST rate details.
- Set Reverse Charges Applicability: Set "Set Reverse Charges Applicability" to "Yes" if applicable.
- Enable "Use GST Classification".
- Create a new classification named "Import Goods" with the following details:
  - Taxability Type: Taxable
  - Nature of Transaction: Imports – Taxable
  - GST Rate: 18%
- Select "Import Goods" under GST Classification.
- Enter the IGST amount as Rs. 1800.
Save the Voucher:
- Verify all details entered in the purchase voucher.
- Press Ctrl+A to save the voucher.