In order to record interstate sales in the state of Gujarat, you have to account for interstate sales at 0% against Form C, interstate sales at 2% against Form C, and interstate sales at multiple CST rates.
Interstate sales have to be taxed at 0% CST rate against Form C when:
● It is transit transaction against Form E2.
● The goods are taxed at 0% under section 8(5) of CST Act read with section 8(4) (against Form C).
To record such sales, the following enhancements are introduced:
● A new option under Nature of transaction, namely Interstate Sales Exempt - With Form C is provided.
● The option Is under CST exemption? is provided. After selecting the Form to receive as Form C, you can set this option to:
o Yes, if the goods are taxed at 0% when purchased against Form C. In the Form 201 report, the text Under exemption appears when this option is set to Yes.
o No, if the transaction is against Form E1/E2. In the Form 201 report, the text Subsequent of E1/E2 appears when this option is set to No.
To record an interstate sales invoice against Form C,
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Ref. field.
3. Select the party ledger in the field Party's A/c Name.
4. Set the option Is Against C Form? to Yes in Party Details screen. This option appears only when the State selected is other than Gujarat.
5. Select the sales ledger predefined with the nature of transaction Interstate Sales Exempt - With Form C.
6. Select the required stock items.
7. Set the option Provide VAT Details? to Tax Invoice. In the Statutory Details screen,
o Set the option Type of Invoice to Retail.
o Select C Form as the Form to receive.
o Set the option Is Under CST exemption? to Yes/No, as shown below:
o Select the Category of Transaction.
o Enter the transport, transporter's and driver's details.
o Provide the Additional Information.
o Press Ctrl+A to accept and return to sales invoice.
The sales invoice appears as shown below:
8. Press Enter to save.
To record an interstate sales invoice against Form C,
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Ref. field.
3. Select the party ledger in Party's A/c Name option.
4. Set the option Is Against C Form to Yes in Party Details screen. This option appears only when the state selected is other than Gujarat.
5. Select a common sales ledger in which the option Is VAT/CST Applicable is set to Applicable, and Set/Alter VAT Details is disabled.
6. Select the required stock items. If the option Is Against C Form is set to Yes in Party Details screen, the tax gets calculated at 2% CST rate irrespective of the tax rates defined in the inventory or accounting masters.
7. Select the common CST ledger.
Ledger must be grouped under Duties & Taxes in which the fields:
● Type of Duty/Tax is set to CST.
● Percentage of Calculation is set to 0.
8. Set the option Provide VAT Details to Yes to view the Statutory Details screen.
9. Enter the C Form details.
10. Select the Category of Transaction.
Note: Based on the category selected in the Category of Transaction field, the relevant box is ticked in Nature of Transaction section of Form 402.
11. Set the option Provide VAT Details? to Yes.
o Set the option Type of Invoice to Tax Invoice.
o Select C Form in Statutory Details screen.
o Select the Category of Transaction.
o Enter the transport, transporter's and driver's details.
o Provide the Additional Information.
o Press Ctrl+A to accept and return to sales invoice.
12. Press Enter to return to sales invoice.
The sales invoice appears as shown below:
13. Press Enter to save.
To record an interstate sales invoice for items attracting multiple CST rates,
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter the reference number in Ref. field.
3. Select the party ledger in Party's A/c Name option.
4. Set the option Is Against C Form to No in Party Details screen. This option appears only when the State selected is other than Gujarat.
5. Select a common sales ledger in which the option Is VAT/CST Applicable is set to Applicable, and Set/Alter VAT Details is disabled.
6. Select the required stock items whose VAT rates are specified either at the stock group or stock item level. Enter Quantity and Rate for each stock item.
7. Select the common CST ledger.
Ledger must be grouped under Duties & Taxes in which the fields:
● Type of Duty/Tax is set to CST.
● Percentage of Calculation is set to 0.
8. Set the option Provide VAT Details to Yes.
o Set the option Type of Invoice to Tax Invoice.
o Select the Category of Transaction.
o Enter the transport, transporter and driver's details in the Statutory Details screen.
9. Click A: Tax Analysis to display the Tax Analysis screen.
o Click F1: Detailed to view the stock items.
o Press Esc to return to invoice.
The sales invoice appears as shown below:
10. Press Enter to save.
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