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Create GST tax ledger( CGST,SGST ,IGST, UT Tax, & Cess)in tally erp 9?

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In this article of GST series, Let’s learn how to  create GST tax ledgers. As per GST rule there are five tax types which facilitate the accounting of tax collected and paid by gst tax payers. The five types of taxes are as follows.

  1. State Goods and Service Tax (SGST)
  2. Central Goods and Service Tax ( CGST)
  3. Integrated Goods and Service Tax ( IGST)
  4. UTGST ( Union territory GST or UT Tax)
  5. Cess for certain notified products

SGST & CGST are for accounting Local sale; that is sale within state and IGST is for recording Interstate sale. UTGST is in place of SGST in union territories of India. Cess are collected for compensating state’s revenue loss on some of the products and services notified by GST council.

Creation of GST tax ledger

Before creating GST tax ledger, In tally erp 9 you need to activate GST in tally. To do this go to

F11 Features>F3 Statutory

Enable Goods and Service Tax ( GST)

Set/alter GST Details: Yes

Know more about How to activate gst in tally erp 9 ?

After activation you are set to create GST Tax ledger, the steps are same as creating a ledger normally  in tally. Let’s create SGST ledger first

Create State Goods and service tax ledger ( SGST)

Go to Gateway of Tally> Accounting Info > Ledger >Create

Name : Enter the name of the ledger here SGST

Under : Duties & Taxes, immediately after selecting this option, new fields of taxation are appear.

Type of duty/tax: GST

Tax type : State tax

Percentage of calculation: You need not mention anything here, leave it blank.

Rounding Method: Select the rounding method of tax amount as per your option. a new option called rounding limit will appear.

Rounding limit :  enter the rounding limit ,for example 1, 10 ,100 etc.

Enter opening balance if there is anything. Here is the screen shot of SGST ledger creation

sgst tax ledger creation

Hit enter key and save the screen to complete ledger creation.

Create CGST ledger

Follow the same route of ledger creation as described above.

Accounting Info> Ledger> Create

Name: CGST

Under: Duties& Taxes

Type of duty/tax : GST

tax type: Central tax

Here is the final screen shot of CGST tax ledger creation.

cgst ledger creation

 

IGST ledger creation

IGST ledger creation for interstate transaction is here. Have a look at the below screen shot. all necessary fields filled in the below image.

IGST Ledger creation screen shot

Now UTGST tax creation

UTGST Ledger creation is available  only for companies exists in union territories of India. For other states of India  UTGST options will not be available in tally erp 9.  That is at the time of company creation , Union territory will be selected in place of state option.Let’s create UT Tax ledger.

Accounting Info> Ledger> Create

Name:  UT Tax or UTGST as per your choice.

Under Duties and taxes.

Type of duty: GST

In tax type option you will find a new tax called UT Tax , only available for union territory companies.

Here is the screen shot of UT Tax /UTGST tax ledger creation screen.

UT-tax-ledger-or-utgst-ledger-creation-screenshot

Save the screen to create UT Tax ledger.

Finally Create Cess ledger for GST

To create GST cess ledger  go to

Accounting Info> Ledger>Create

There are two types of cess in gst cess based on quantity and cess based on value, While creating cess ledger yoou will these two options in tally . Let’s create Cess on Quantity.

Name: Cess on Quantity

Under: Duties&taxes

Type of duty/tax: GST

Tax type :Cess

Valuation type :  Cess on Quantity , Cess on value & any options are available. You can can choose any one of the options suitable for your business. Here is the final screen shot of cess ledger creation for GST.

cess ledger creation

In the same manner, You can create cess ledger based on value.

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