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GST Not Calculated on Few Slab Rates

The tax gets calculated at the applicable slab rate defined in the stock item. If the slab rates cannot be applied for a particular price, the value entered as Rate (Incl. of Tax) appears as the Rate in the invoice. You need to change the manually enter the Rate per unit and tax values.

Consider the example of apparel costing Rs. 1,100 inclusive of tax, with the slab rates mentioned below:

Slab Rate

Integrated Tax

0-1,000

5%

Above 1,000

18%

To create a slab rate for stock item

  1. Gateway of Tally > Create/Alter > type or select Stock Item > and press Enter.
    Alternatively, press Alt+G (Go To) > Create/Alter Master > type or select Stock Item > and press Enter.
  2. Set the slab rate with tax rates.

To record a sales invoice

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press F12 (Configure) and set the option Provide Rate Inclusive of Tax for Stock Item to Yes.
  3. Select the stock item, enter the Rate (Incl. of Tax). When the slab rate cannot be applied on the Rate (Incl. of Tax), the same amount appears as Rate and tax will be calculated on this.
    Tax calculation at 5% and 18% are given below to show that the higher or lower slabs cannot be applied.
    • Tax calculation at 5% = 1,100*(5/105) = 52.38
      The stock item rate without tax comes to = 1,100 – 52.38 = 1,047.62. This amount is higher than 1,000, hence does not fall in the slab rate 0-1000.
    • Tax calculation at 18% = 1,100*(18/118) = 167.79
      The stock item rate without tax comes to = 1,100 – 167.79 = 932.21. This amount is lower than 1,000, hence does not fall in the slab rate Greater than 1000.

In such cases, you can manually enter the required rate and record the transaction.

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