You can create a GST Classification in order to record the tax rate and other details for a category of goods attracting a specific GST rate. For example, creating GST Classifications based on HSN. When this classification is used in relevant masters and transactions, the tax details of the goods or services will be automatically captured. In case the department changes, the tax rate for any HSN in future, alter the GST Classification and assign the new rate.
You can create GST Classifications for an accounts-only company as well. Depending on the grouping used for GST Classifications, you can tag those to Sales, Purchase, Services, Income and Expense ledgers.
To create a GST classification, under F11: Features > Statutory and Taxation , enable the options Enable Goods and Services Tax (GST)? and Set/alter GST details? . In the GST Details screen, set the option Enable GST classification? to Yes .
Create a GST classification based on HSN Code
Use a GST classification for setting GST details
Create a GST classification based on SAC
Use a GST classification for setting GST details for a Service
Select cess on quantity and value
To create a GST classification based on HSN code
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications > Create .
2. Select the Nature of Transaction , if required.
Note : The nature of transaction is identified based on Registration Type, State and Country of the party. Therefore, there is no specific requirement to select nature of transaction. You need to change the nature of transaction in case of branch transfers, consignment transfers, works contract, and so on, accordingly.
3. Enter the rates applicable for Integrated Tax , and Cess , if any. The rate entered for integrated tax will be equally divided between central tax and state tax. You can specify further GST details for the GST classification by clicking F12: Configure .
To use a GST classification for setting GST details
1. Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup .
2. Select the items that have the specified HSN Code.
3. Click S : Set Rate , and select the GST Classification.
Notice that tax details disappear from the GST Details screen as the details are taken from the GST Classification.
Create different classifications for items falling under other HSNs, and assign the classification to the required items.
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications > Alter .
2. Specify the new rate, press Enter twice, provide the revised applicability from date, and save.
To create a GST classification based on SAC
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications > Create .
2. Provide the details as required.
To use a GST classification for setting GST details for a service
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Enable Set/alter GST Details? .
3. In the GST Rate Details screen, select the GST Classification created for Annual Maintenance Contract.
4. In Type of Supply , select Services .
Create different classifications for services falling under other SACs, and assign the classification to the required services.
To create a GST classification for cess based on quantity or value
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications > Create .
2. Enter the percentage of Integrated Tax . The Central Tax and State Tax rates are displayed.
3. For Cess , the cursor moves to the Rate column. Press Backspace to select the Valuation Type as Based on Value and Quantity . Enter the cess Rate and cess rate per unit.
Note: You can also select the Valuation Type of cess as Based on Value and Quantity in the GST Rate Details screen of Tax Rate History .
4. Accept the GST Classification Creation screen.
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