Multiple GST and Interstate Sales invoice in Tally.ERP9

As per GST mandate, printing of  a valid sales invoice/ GST tax invoice should have party’s GST registration, location, item details (HSN or SAC), and tax rates. Sales Invoice can be Single GST rate or multiple GST Rate invoice. In multiple GST Tax invoice you can include items having more than one GST Tax slab in a single invoice. The main benefit of multiple GST invoice is to reducing the no. of Sales invoices. 

To implement multiple GST rates in a single sales voucher, Items wise GST is needs to be enabled. To do this –

1. Go to Gateway of Tally > Inventory Info > Select Stock Items > Click on Alter > under Statutory Information -Change GST Applicable to Yes, then set/alter GST Details to Yes , add description , the use HSN/SAC code – as per actual goods/commodity.
2. Under Tax Details – select calculations type as on value and Taxability as Taxable
3. Set Integrated Tax Rate as applicable. and to accept press Y.

What is HSN and SAC Code ?

HSN (Harmonized System Nomenclature) –

HSN stands for Harmonized System of Nomenclature is a system followed by most of the countries worldwide to systematically classify goods (Goods are itineraries which are traded in a business ) for business accounting and for implementation of Taxes. This system has been developed by the World Customs Organization (WCO) and it is now considered the global standard for naming goods.

So, HSN has now become a de facto standard for trading the business items having a standardised code worldwide. This is a 6-digit uniform code can be used to classify more than 5,000 products, and are also used for classification for tax purposes.This system is followed more than 200 countries over the world and it classifies over 98% of the goods that are available in the world to trade.

India has been a member of WCO since 1971 and was following  6-digit HSN codes to classify goods for Customs and Central Excise since 1986. Now , the Customs and Central Excise has added 2 more digits later to make HSN codes for better differentiation.

GST was introduced in India in 2017, So now HSN is used in a 3-tiered system.

• Any Business having  a turnover of less than Rs 1.5 crore do not need to use HSN
• Any Business  having a turnover  between Rs 1.5 crore to Rs 5 crore, must use 2-digit HSN codes
• Any Business having  a turnover of more than Rs 5 crore must use 4-digit HSN codes
• Any Business that deals with imports and exports have to use an 8-digit HSN code

Service Accounting Code

Service Accounting Code (SAC) is a unique code assigned to the type of service rendered that is identical to the International HSN codes in many ways. SAC is a 6 digit code issued by Central Board of Indirect Tax to classify each service and to identify the applicable rate of tax on the respective services. These SACs are used during the generation of service invoices. SAC begins with 99 which  differentiates SAC from HSN.

Recording a Sales invoice with multiple GST

1. From Gateway of Tally > select the Accounting Vouchers >press F8 key : to select  Sales voucher .
2. Select the Party A/c name from the available sundry ledgers or the cash ledger.
3. Choose the common sales ledger in which GST rate is not defined.
4. Select the stock items you wish to make sales and which has different/multiple GST rates defined, and specify the quantities and rates for each of them.
5. Now Simply select the CGST and SGST tax ledgers. GST will be automatically calculated based on the multiple GST rates defined in the respective stock items.

To verify this go to  view the tax details by clicking Alt+A  on the button menu bar on the right: Tax Analysis . Click Alt+F1 : Detailed to view the tax break-up.

6. To print the sales invoice, press Alt+P .

For multiple copies :

After Pressing  Alt+P then press  Alt+C to select the number of invoice copies to be printed.

For service Invoice, original copy is printed for buyer and duplicate copy is printed for supplier.

For Sales Invoice, original copy is for buyer, duplicate is for transporter and, triplicate is for supplier .

Print invoice with Item-wise GST details

According to GST guidelines, details such as the applicable taxes and tax rates, and the GSTIN/UIN of the company and the customer will be captured. So after selecting the state in the ledger master, the state name and the state code will be captured in the printed invoice.

To print the company GSTIN on the sales invoice:

• You need to specify GSTIN under Set/alter GST details in company F11 > F3 features.
• To get the GST details printed in the sales invoices ,press F12 key in the Voucher Printing screen and configure the :

o Print Company GSTIN Number to Yes .

o Change  Print Item-wise GST details to Yes , it will  print the GST invoice  with tax breakup for each stock item.

Interstate sales with GST

When you sell your goods to another states then the Tax jurisdiction changes. For intra-state sales CGST and SGST is levied on each sales invoices. Here CGST is a Central Tax and SGST is state Tax and kept by the state Govt. where sales has taken place.

But in case of Interstate sales two states are involved, one is originating state and other is consuming state. So the division of Taxes is done equally between centre and consuming state. Here the Tax is levied is Integrated Tax, which is divided evenly when the sales of the items happen in consuming state .

So recording the interstate sales is more or less same as Local Sales . There is just one change that instead of CGST and SGST,  the integrated tax ledger is used .

B2B and B2C Invoices

Sales Invoices are categorised as Business 2 Business (B2B) and Business 2 Consumers (B2C) in the GSTR-1 Reports.

B2B covers all the Business to Business Sales under it.

B2C Invoices are further divided into B2C (Large) and B2C (Small) in GSTR-1 Reports.

B2C (Large) Invoices :All the interstate sales transactions having the invoice value is more than Rs. 2.5 lakh are shown under B2C (Large) Invoices in GSTR-1 Reports.

B2C(Small) Invoices : In GSTR-1 Reports, following transactions are captured:

o All Local sales transaction: Irrespective of the invoice value.

o Interstate sales transactions: having total invoice value less than Rs. 2.5 lakh.