In order to record interstate sales in the state of Gujarat, you have to account for interstate sales at 0% against Form C and interstate sales at 2% against Form C.
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:
● Nature of transaction - 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 sold against Form C .
o No , if the transaction is against Form E1/E2 .
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 Maharashtra.
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 Yes . In the Statutory Details screen,
o Select C Form as the Form to receive .
o Set the option Is under CST exemption to Yes / No as applicable.
o Press Enter to save and return to sales invoice.
The sales invoice appears as shown below:
8. Press Enter to save.
To record an interstate sales invoice for items attracting 2% CST rate,
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 No in Party Details screen. This option appears only when the state selected is other than Maharashtra.
5. Select a common sales ledger in which the option Is VAT/CST Applicable? is set to Applicable , and Set/Alter VAT Details? is not enabled..
6. Select the required stock items whose VAT rates are specified either at the stock group level, or at the stock item level. Enter Quantity and Rate for each stock item.
7. Select the common CST ledger.
The ledger must be grouped under Duties & Taxes in which the options:
● Type of Duty/Tax is set to CST .
● Percentage of Calculation is set to 0.
8. Click A : Tax Analysis to display the Tax Analysis screen.
o Click F1 : Detailed to view in detailed mode. The Tax Analysis screen appears as shown below:
o Press Esc to return to sales invoice.
The sales invoice appears as shown below:
9. Press Enter to save.
'Interstate Sales Against C Form (Maharashtra)' has been shared with
