Quick Setup (Once-Only)
- Enable GST: F11 (Features) → Statutory & Taxation → Enable Goods and Services Tax (GST) → set State, Registration type, GSTIN.
- Create GST ledgers:
- Duties & Taxes (Type: GST) → CGST Output, SGST Output, IGST Output
- Duties & Taxes (Type: GST) → CGST Input, SGST Input, IGST Input
- Customers & Suppliers: set GST Registration type and State for place-of-supply.
- Stock Items/Services: set HSN/SAC and Tax rate (5/12/18/28%).
- Sales/Purchase Ledgers: mark as GST Applicable and link tax classification.
Keep a Round Off ledger (Indirect Expenses/Income, affect voucher rounding). It helps invoices match portal totals.
Sales (Tax Invoices) Outward Supply
A) Intra-state Sale (CGST+SGST)
- Voucher F8 Sales → select Customer (same state).
- Pick Sales @18% ledger and items with HSN & rate.
- Add CGST 9% and SGST 9% ledgers.
- Accept (Ctrl + A) and print/email (Alt + P).
B) Inter-state Sale (IGST)
- Voucher F8 → Customer from different state.
- Use IGST 18% ledger instead of CGST/SGST.
- Record transport details if e-way is applicable.
| Scenario | Debit (Dr) | Credit (Cr) | Notes |
|---|---|---|---|
| Intra @18% | Customer ₹11,800 | Sales ₹10,000; CGST ₹900; SGST ₹900 | Place of supply = company state |
| Inter @18% | Customer ₹11,800 | Sales ₹10,000; IGST ₹1,800 | POS different state → IGST |
Purchase (Inward Supply) ITC
A) Local Purchase
- F9 Purchase → Supplier same state.
- Use Purchase @18% + Input CGST/SGST.
- Bill-wise reference for tracking payable.
B) Inter-state Purchase
- F9 → Supplier different state.
- Use Input IGST as per rate.
| Scenario | Debit (Dr) | Credit (Cr) | Notes |
|---|---|---|---|
| Local @12% | Purchase ₹10,000; CGST ₹600; SGST ₹600 | Supplier ₹11,200 | Claim ITC per eligibility |
| Inter @5% | Purchase ₹10,000; IGST ₹500 | Supplier ₹10,500 | Reverse if ineligible |
Special GST Scenarios
1) Reverse Charge (RCM) Inward Tax
- Create RCM Purchase ledger (taxability: RCM).
- Post purchase without tax; then create a Journal to book tax: RCM Output GST (Cr) and RCM Input GST (Dr) as applicable.
- Pay liability via GST Payment in 3B months if ITC not netted.
2) Exports / SEZ Zero-Rated
- Create Export Sales ledger (taxability: Zero-Rated).
- With LUT/Bond → no tax; else pay IGST and claim refund.
- Capture shipping bill, port, currency details in invoice.
3) Credit/Debit Notes
- Use Credit Note (Ctrl+F6) to reduce taxable value/tax; Debit Note for increases.
- Map correct tax ledgers and reference original invoice.
4) Advances & Adjustment
- Receipt of advance from customer may require tax on advance (services) → adjust at invoice.
- Create Advance from Customers ledger (Current Liabilities) with bill-wise tracking.
5) Composition Scheme
- Set registration type = Composition if eligible.
- Use Tax inclusive rates, no ITC, quarterly CMP-08; invoices bear “composition taxable person”.
6) E-Invoice & E-Way Bill
- Enable e-invoice under statutory features; enter IRP credentials.
- Generate IRN/QR from sales invoice; capture Part-A/Part-B for e-way if required.
Returns & Reports
| Report | Path | Purpose | Action |
|---|---|---|---|
| GSTR-1 | Display More Reports → Statutory → GST → GSTR-1 | Outward supplies (B2B, B2C, CDN, exports) | Validate sections; export JSON/Excel for portal |
| GSTR-3B | Display → GST → GSTR-3B | Monthly/Quarterly tax payment & ITC | Verify liability vs ITC; post GST payment voucher |
| HSN/SAC Summary | Display → GST → HSN Summary | Aggregate by HSN/SAC with taxable value & tax | Fix missing codes at item/ledger level |
| GST Reconciliation | Display → GST → Reconciliation | Match books with portal (2B), missing/extra invoices | Rectify ledgers/dates; post RCM/round off entries |
Before filing, lock periods and take a full data backup. Keep voucher numbers & IRN references consistent with the portal.
Troubleshooting (Common Errors & Fixes)
| Issue | Cause | Quick Fix |
|---|---|---|
| Tax not calculating on invoice | GST not enabled / item or ledger lacks tax rate | Enable GST in F11; set HSN/SAC & tax rate on item/ledger |
| CGST shown instead of IGST | Wrong state on customer or company | Correct master states; reselect party to refresh POS |
| Invoices missing in GSTR-1 | Wrong voucher type/date/party GSTIN | Check date range, voucher class, and GSTIN validity |
| ITC mismatch with 2B | Supplier didn’t upload / wrong GST rate | Follow up with supplier; pass reversal/adjustment as needed |
| Rounding differences | Totals vs line-wise tax rounding | Use Round Off ledger; align method with portal practice |
Best Practices
- Use bill-wise tracking for all B2B customers/suppliers.
- Maintain consistent HSN/SAC and tax rates on items/services.
- Run HSN Summary monthly; fix “Missing/Invalid” before filing.
- Reconcile with GSTR-2B before claiming ITC in 3B.
- Back up data pre-filing; lock period after filing to avoid accidental edits.