Welcome

to
Edinbridge Academy Chennai
GST 1
 Introduction:
India is a federal country where both the
Centre and the State have been assigned
the powers to levy and collect taxes
through appropriate legislations.
Both the Governments have distinct
responsibilities to perform according to the
powers prescribed in the Constitution.

Goods and Services Tax (GST) is a

significant logical step towards a complete
indirect tax reform in the country.
 1.1 Prelude to GST
Taxation System

Direct Tax Indirect Tax

Income Central State

Governmen Governmen
t t
 What is GST?

GST is a tax on Goods and Services,

with comprehensive and continuous
chain of input credit set-off from
 Manufacture to
 Distributor to
 Retailer

 till it reaches the end consumer.

 Terminologies in GST

 Inward Supply: All Purchase Transactions

 Outward Supply: All Sale Transactions

 Place of Supplier: Location from where the Goods

supplied and/or Services rendered.

 Place of Supply: Location where in the Goods

supplied and/or Services rendered.
 Registration

 Registration under GST is 15 digit state-wise PAN-based

Goods and Services Taxpayer Identification Number
(GSTIN) which will be allocated post Registration.

State Entity Check

PAN Blank
Code Code Digit

3 3 A A A A A 1 2 3 4 A 1 Z 5
 Copies of Invoice
For Supply of Goods, three copies of the invoice are
required – Original, Duplicate, and Triplicate.
1. Original invoice: The original invoice is issued to the
receiver, and is marked as ‘Original for recipient’.
2. Duplicate copy: The duplicate copy is issued to the
transporter, and is marked as ‘Duplicate for
transporter’.
3. Triplicate copy: This copy is retained by the supplier,
and is marked as ‘Triplicate for supplier’.
 Tax Rate Structure
• Rates at 5%, 12%, 18% and 28%.
• Nearly 81 per cent of the items will fall under below 18 % GST
Rate slabs and only 19 % of the goods will be taxed 18 per
cent and above.

EX
19% EM 7%

%
PT

28
43

18
%
%
12 5% 14%
17%
%
 Creating a new Company

Company Name : Boo Traders

Address : No.310, 20th
Cross, Unity Building,
Karnataka –
560030
Financial Year : 01-04-2025
Book Beginning Year : 01-04-2025
 Enabling GST &
Defining Tax Details
To enable GST,
1. Taxation > enable Goods
And Services Tax (GST)
2. Enable Goods & Service
Tax to “Yes” and
Set/alter GST details to “Yes”
3. Enter the details in GST
details screen
 Transferring Input
Tax Credit to GST
Date Particulars
01-07- Journal Voucher : transfer input
2025 VAT credit of ₹10,000 to State Tax
ledger
01-07- Journal Voucher : transfer CENVAT
2025 credit of ₹2,000 to Central Tax
ledger
 Transferring Input
Tax Credit to GST

Masters Creation
1. Name :
VAT
Under :
Duties & Taxes
Type of Duty :
Others
2. Name :
 Transferring Input
Tax Credit to GST
Masters Creation
1. Name :
State Tax
Under :
Duties & Taxes
Type of Duty :
GST
Tax Type :
State Tax
 Transferring Input
RecordingTax Credit to GST
Transaction
1. Go to Gateway of Tally >
Accounting Vouchers > F7: Journal
2. Click F2 to change the date as 01-07-
2025
3. Click Alt+J – Statutory Adjustment
4. In the Stat Adjustment screen,
mention
Type of Duty : GST
Nature of Adjustment : Opening
Balance
 Transferring Input
Tax Credit to GST
Recording Transaction
5. Debit State Tax and
enter the amount
₹10,000
6. Credit VAT and the
amount will captured
automatically
7. Accept the Voucher.
 Activity

• Record Journal Voucher

on 01-07-2025, to
transfer CENVAT credit
of ₹2,000 to Central
Tax Ledger
• Hint : Dr.Central Tax
and Cr.CENVAT.
 Intrastate Supply of
ntrastate Inward Supply
Goods
Voucher : Purchase (F9)
Date : 01-07-2025
Invoice No. : PUR/1
Party Name : Kesha Traders,
Karnataka
Tax
Item DetailsQty : CGST
Rate – 9%, SGST –
Amount
Badam
9%Hair 1000 400 400,000
Oil
 Intrastate Supply of
Goods
Intrastate Inward Supply
Accounts Masters Creation
1. Name
: Kesha Traders
Under
: Sundry Creditors
Maintain balances bill by bill
: Yes
Address :
No.92, Twin Towers,
 Intrastate Supply of
Goods
Intrastate Inward Supply
Accounts Masters Creation
2. Name
: Purchases
Under
: Purchase Accounts
Inventory values are affected
: Yes
Is GST Applicable
 Intrastate Supply of
IntrastateGoods
Inward Supply
Inventory Masters Creation
3. Name :
Badam Hair Oil
Under :
Primary
Units :
Alt+C to create

(Name Bottle, Symbol

 Intrastate Supply of
IntrastateGoods
Inward Supply
Recording Transaction
1. Go to Gateway of Tally > Accounting
Vouchers > F9: Purchase (Item Invoice
Mode)
2. Press F2: Date and enter 01.07.2025
3. F12: Configuration > Set “Use common
ledger account for item allocation” to
“Yes” > Accept the screen
4. Enter Supplier Invoice no. P/01 and date will
 Intrastate Supply of
Recording Transaction
IntrastateGoods
Inward Supply
5. Select Kesha Traders, address and GST
number as entered in the supplier ledger is
displayed here.
6. Select Regular as Type of Dealer
7. Select Purchases in Purchase Ledger
8. Select Badam Hair Oil in name of item, enter
qty as 1000btl., rate as 400/btl and the
amount will be calculated automatically
9. Press Enter twice to select the GST duty
 Intrastate Supply of
IntrastateGoods
Inward Supply
Recording Transaction
10.Select Central Tax, the tax amount will get
captured automatically
11.Select State Tax, the tax amount will get
captured automatically
12.Click Alt+A: Tax Analysis to view the tax
implication in this transaction
13.Click Alt+F1: to view detailed information
14.Press Esc to go back to the voucher creation
 Intrastate Supply of
IntrastateGoods
Inward Supply
Recording Transaction
15.Accept Bill-wise details
screen as it is
16.Accept the voucher.
 Intrastate Supply of
Intrastate Goods
Outward Supply
Voucher : Sales (F8)
Date : 02-07-2025
Invoice No. : 1/RT
Party Name : TK Traders, Karnataka
Tax Details : CGST – 9%, SGST – 9%
Item Qty Rate Amount
Packing Charges : 5000
Badam 100 700 70,000
Discount Allowed : 1%
Hair Oil
 Intrastate Supply of
Goods
Intrastate Outward Supply
Accounts Masters Creation
1. Name
: TK Traders
Under
: Sundry Debtors
Maintain balances bill by bill
: Yes
Registration Type
 Intrastate Supply of
Goods
Intrastate Outward Supply
Accounts Masters Creation
2. Name
: Sales
Under
: Sales Accounts
Inventory values are affected
: Yes
Is GST Applicable
 Intrastate Supply of
Intrastate Goods
Outward Supply
Accounts Masters Creation
3. Name :
Packing Charges
Under : Indirect
Expenses
Inventory values are affected : No
Is GST Applicable : Not Applicable
Include in assessable value
Calculation for : GST
Appropriate to : Goods
Method of Calculation : Based on Value
 Intrastate Supply of
Intrastate Goods
Outward Supply
Accounts Masters Creation
4. Name :
Discount Allowed
Under :
Indirect Expenses
Inventory values are affected : No
Is GST Applicable : Not
Applicable
Include in assessable value
Calculation for : GST
 Intrastate Supply of
Intrastate Outward
Goods Supply
Recording Transaction
1. Go to Gateway of Tally > Accounting
Vouchers > F8: Sales (Item Invoice
Mode)
2. Press F2: Date and enter 02.07.2025
3. Enter Reference No. 1/RT
4. Select TK Traders as Party name and
accept Despatch details as it is
5. Select Sales as Sales Ledger
 Intrastate Supply of
Intrastate Goods
Outward Supply
Recording Transaction
6. Select Badam Hair Oil in name of
item, enter qty as 100btl., rate as
700/btl and the amount will be
calculated automatically
7. Press Enter twice to select the GST
duty & Expenses ledgers.
8. Select Discount Allowed, enter rate
as (-1%), value will get calculated
automatically
9. Select Packing Charges and enter
 Intrastate Supply of
Intrastate
Recording Outward Supply
Goods
Transaction
10.Select Central Tax, the tax amount
will get captured automatically
11.Select State Tax, the tax amount
will get captured automatically
12.Click Alt+A: Tax Analysis to view
the tax implication in this
transaction
13.Click Alt+F1: to view detailed
information
14.Press Esc to go back to the voucher
 Intrastate Supply of
Goods
Intrastate Outward Supply
Recording Transaction
15.Accept Bill-wise details
screen as it is
16.Accept the voucher.
 Interstate Supply of
Interstate Goods
Inward Supply
Voucher :
Purchase (F9)
Date : 01-07-
2025
Invoice No. : PUR/2
Item Qty Rate Amount
Party Name : Palani
Badam 100 400 40,000
Traders,
Hair Oil Tamilnadu
Tax Details : IGST –
18%
 Interstate Supply of
Goods
Interstate Inward Supply
Accounts Masters Creation
1. Name
: Palani Traders
Under
: Sundry Creditors
Maintain balances bill by bill
: Yes
Address :
 Interstate Supply of
Goods
Interstate Inward Supply
Accounts Masters Creation
2. Name
: Interstate Purchases
Under
: Purchase Accounts
Inventory values are affected
: Yes
Is GST Applicable
 Intrastate Supply of
Goods
Intrastate Inward Supply
Accounts Masters Creation
3. Name :
Integrated Tax
Under :
Duties & Taxes
Type of Duty / Tax :
GST
Tax Type :
 Interstate Supply of
InterstateGoods
Inward Supply
Recording Transaction
1. Go to Gateway of Tally >
Accounting Vouchers > F9:
Purchase (Item Invoice Mode)
2. Press F2: Date and enter
01.07.2025
3. Enter Supplier Invoice no. P/02 and
date will be automatically filled
4. Select Palani Traders, Supplier
 Interstate Supply of
InterstateGoods
Inward Supply
Recording Transaction
5. Select Interstate Purchases in
Purchase Ledger
6. Select Badam Hair Oil in name of
item, enter qty as 100btl., rate as
400/btl and the amount will be
calculated automatically
7. Press Enter twice to select the GST
duty ledgers.
 Interstate Supply of
Goods
Interstate Inward Supply
Recording Transaction
9. Click Alt+A: Tax Analysis to view the
tax implication in this transaction
10.Click Alt+F1: to view detailed
information
11.Press Esc to go back to the voucher
creation screen
12.Accept Bill-wise details screen as it
is
 Interstate Supply of
Interstate Goods
Outward Supply
Voucher : Sales (F8)
Date : 02-07-2025
Invoice No. : 2/RT
Party Name : Mahesh Traders,
Tamilnadu
Tax Details : IGST – 18%
Packing Charges : 7000
Item Qty Rate Amount
Discount Allowed : 1%
Badam 800 700 560,00
Hair Oil 0
 Interstate Supply of
Goods
Interstate Outward Supply
Accounts Masters Creation
1. Name :
Mahesh Traders
Under :
Sundry Debtors
Maintain balances bill by bill : Yes
State :
Tamilnadu
Pincode :
 Interstate Supply of
Goods
Interstate Outward Supply
Accounts Masters Creation
2. Name
: Interstate Sales
Under
: Sales Accounts
Inventory values are affected
: Yes
Is GST Applicable
: Applicable
 Interstate Supply of
Interstate Goods
Outward Supply
Recording Transaction
1. Go to Gateway of Tally >
Accounting Vouchers > F8: Sales
(Item Invoice Mode)
2. Press F2: Date and enter
02.07.2025
3. Enter Reference No. 2/RT
4. Select Mahesh Traders as Party
name and accept Despatch details
 Interstate Supply of
Interstate Outward
Goods Supply
Recording Transaction
6. Select Badam Hair Oil in name of item,
enter qty as 800btl., rate as 700/btl and
the amount will be calculated
automatically
7. Press Enter twice to select the GST duty &
Expenses ledgers.
8. Select Discount Allowed, enter rate as (-
1%), value will get calculated
 Interstate Supply of
Interstate Goods
Outward Supply
Recording Transaction
10.Select Integrated Tax, the tax amount will
get captured automatically
11.Click Alt+A: Tax Analysis to view the tax
implication in this transaction
12.Click Alt+F1: to view detailed information
13.Press Esc to go back to the voucher
creation screen
14.Accept Bill-wise details screen as it is
 Return of
Goods
Purchase Return
Date Particulars
01.07. Voucher: Purchase
2025 Purchase the following goods
from SRK Traders, Karnataka
with supplier Invoice No.P/03
with CGST @ 9% and SGST @
9%
Name of Qty Rate Amou
the Item in / Btl. nt
Btl.
 Return of
Goods
Purchase Return
Date Particulars
02.07. Voucher: Debit Note
2025 Returned the following
damaged goods to SRK
Traders against supplier
invoice no.P/03 dated
01.07.2025 with CGST @ 9%
and SGST @ 9%
Name of Qty Rate Amou
the Item in / Btl. nt
 Return of
Goods
Sales Return
Date Particulars
02.07. Voucher: Sales
2025 Sold the following goods from
Mi-Tech Traders, Karnataka
with supplier Invoice No.3/RT
with CGST @ 9% and SGST @
9%
Name of Qty Rate Amou
the Item in / Btl. nt
Btl.
 Return of
Goods
Sales Return
Date Particulars
02.07. Voucher: Credit Note
2025 Mi-Tech Traders Returned the
following goods against Sales
invoice no.3/RT dated
02.07.2025 with CGST @ 9%
and SGST @ 9%
Name of Qty Rate Amou
the Item in / Btl. nt
Btl.
 Outward Supply of
Services
Illustration

Date Particulars
02-07- Voucher : Sales
2017 Provided Advertising
Services of worth ₹400,000
to AZ Pvt. Ltd. Bengaluru,
Karnataka. Additionally,
GST @ 18% is charged on
the invoice with reference
number 4/RT
 Outward Supply of
Services
Accounts Masters Creation
1. Name
: AZ Pvt. Ltd.
Under
: Sundry Debtors
Maintain balances bill by bill :
Yes
State
: Karnataka
Pincode :
 Outward Supply of
Services
Accounts Masters Creation
2. Name
: Advertising Services
Under
: Indirect Incomes
Inventory values are affected
: No
Is GST Applicable
: Applicable
 Outward Supply of
Recording Transaction
Services
1. Go to Gateway of Tally >
Accounting Vouchers >
F8: Sales (Accounting Invoice
Mode)
2. Press F2: Date and enter
02.07.2025
3. Enter Reference No. 4/RT
4. Select AZ Pvt. Ltd. as Party
name and accept Despatch
 Outward Supply of
Services
Recording Transaction
6. Enter the amount as ₹400,000 and press
Enter.
7. Select the GST duty ledgers and
amounts filled automatically.
8. Click Alt+A: Tax Analysis to view the tax
implication
9. Click Alt+F1: to view detailed
information
10.Press Esc to go back to the voucher
 GST REPORTS
Exploring the
Return Summaryinformations in GST
: Return Summary will display the
total number of vouchers for the period, vouchers
Reports
included in returns, vouchers not included in returns,
incomplete / mismatch in information (to be resolved)
Particulars : It will display the details of the taxable
value and tax amount
o Alt+V : To view the report in table format. In this
format we will get the details of B2B, B2C, Nil Rated,
Export, Advances, etc.
o Alt+U : To mark the status of each transaction based
on the online status. This will allow to track the status
 GST REPORTS
Exploring the
informations
o Ctrl+E : To export in GST
the GSTR returns in the required
excel format for Reports
any given period. All the
transactions that are displayed under Included in
returns section in GSTR reports will be exported.
The MS Excel file created on export of GSTR is in
line with the format prescribed by the department.
The file can be imported to the utility tool. This tool
then creates .json file that can be uploaded on the
GST Portal.
o Alt+N : It displays the summary of HSN/SAC code
of stock item.
 GST REPORTS
Generating GSTR-1
Report
To generate the GSTR-1 infollow
report, Tally the steps
given below,
1. Go to Gateway of Tally > Display > Statutory
Reports > GST
2. Select GSTR-1
3. Press F2: to select the return period from 01-07-
2025 to 31-07-2025
4. Click Alt+V, to view the report in Return
Summary format
5. Press F12 and enable “Show tax types in
 GST REPORTS
Generating GSTR-2
To generate the Report in Tally
GSTR-2 report, follow the
steps given below,
1. Go to Gateway of Tally > Display >
Statutory Reports > GST
2. Select GSTR-2
3. Press F2: to select the return period from
01-07-2025 to 31-07-2025
4. Click Alt+V, to view the report in Return
Summary format
5. Press F12 and enable “Show tax types
 Payment of GST
Tax
Solution
Creation of Accounting Masters
1. Ledger Name : Kotak Bank A/c
Under : Bank
Accounts
A/c No. :
908765677899009
IFS Code : KKBK0000424
Branch :
 Payment of GST
Tax
Solution
Recording of
Transactions
1. Go to Gateway of Tally
> Accounting
Vouchers > F5:
Payment
2. Click F2: Change the
date to 02.07.2025
 Payment of GST
Solution
Tax
Recording of Transactions
4. Enter the following details:
 Tax Type - GST
 Period from - 01-
07-2025 to 31-07-2025
 Payment Type -
Regular
 Payment of GST
Tax
Solution
Recording of Transactions
5. Press Enter to accept Stat
Payment Details screen
6. In the Account field
select Kotak Bank
7. Under Particulars select
Central Tax, State Tax
and Integrated Tax
ledgers and enter the
 Payment of GST
Tax
Solution
Recording of Transactions
9. Enter the necessary
details as shown in the
figure
10.Accept the Bank
allocation screen as it is.
11.Press Enter to accept the
voucher
 Challan
Reconciliation
In challan reconciliation we can define the details of
payment made, in case if any details are left while
recording the payment voucher
To reconcile challan,
1. Go to Gateway of Tally > Display > Statutory
Reports > GST > Challan Reconciliation
2. Press F12: Configuration > Enable Show
transactions having challan details to ‘Yes’ (If
details already provided)
3. Press Space Bar to select the voucher
4. Click Alt+S to set the details. (If details not
 Exempted Goods /
Services
Illustration

Date Particulars
01.08.20 Voucher : Purchase
25 Raheja Traders Purchased
the following exempted
goods from Indramukhi
Traders, Bengaluru with
supplier invoice number
P/04.
 Exempted Goods /
Services
Solution
Creation of Accounting Masters
1. Ledger Name :
Indramukhi Traders
Under :
Sundry Creditors
Maintain balances
bill by bill : Yes
Registration Type: Regular
 Exempted Goods /
Services
Solution
Creation of Accounting Masters
1. Ledger Name : Exempted
Purchase
Under :
Purchase A/c
Inventory values are
affected : Yes
Is GST Applicable :
Applicable
Set/alter GST details : Yes
 Exempted Goods /
Services
Solution
Creation of Inventory Masters
1. Name :
Printed Books
Under :
Primary
Units
: Nos.
GST Applicable :
Applicable
Set/alter GST details :
Yes
Description :
 Exempted Goods /
Services
Solution
Recording of
Transactions
1. Go to Gateway of Tally
> Accounting
Vouchers > F9:
Purchase
2. Click F2: Change the
date to 01.08.2025
 Exempted Goods /
Services
Solution
Recording of
Transactions
1. Go to Gateway of Tally
> Accounting
Vouchers > F9:
Purchase
2. Click F2: Change the
date to 01.08.2025
 Exempted Goods /
Services
Solution
Recording of Transactions
4. Select Indramukhi Traders in Party A/c
field and accept Party details screen
5. Select the ledger, Exempted Purchase
6. In the Name of Item field, select Printed
Books from List of Stock Items
7. Enter Qty as 1000 and Rate as ₹500, the
amount will be calculated automatically
 Exempted Goods /
Services
Solution
Recording of
Transactions
8. Alt+A: Tax Analysis to
view the details of tax
calculation, press Esc
from tax analysis screen
9. Accept Bill wise details
and Save the voucher.
 Exempted Goods /
Services
Activity
Date Particulars
02-08-
Voucher : Sales
2025
Particular Qt Rat Amou
s y e nt
Printed 50 300,00
600
Books 0 0