SOP 2: GST Company Creation
With the help of any open source or free education version accounting software create a company and enter the following transactions in appropriate vouchers.
Company Details
- Company Name: M/s Bags and Baggage Traders
- Address: Sai Baba Nagar, D.P. Road, Navi Mumbai, Maharashtra, Pin Code 400039
- State: Maharashtra
- GSTIN: 27STUVW1234C2Z1
- Books Begin From: 01-04-2019
- On 01/08/2019 purchased 150 pieces of Leather Handbags @Rs. 2500 per piece, GST 28% from Genuine Leather Bags, Navi Mumbai.
- On 02/09/2019 sold 80 pieces @Rs. 3500 per piece, GST 28% to M/s Shoppers Stock, Chiplun, Maharashtra.
Print GSTR-2 and Sales Tax Invoice
Solution
Key Notes
- Both purchase and sale are intrastate (within Maharashtra).
- GST 28% applies as CGST 14% + SGST 14%.
Step I Company Creation
- Gateway of Tally → Company Info (Alt+F3) → Create Company.
- Enter company details (name, address, state Maharashtra, GSTIN) and save.
- Set Financial year and Books Begin From as required.
Step II Enable GST
- Gateway of Tally → Features (F11) → Statutory & Taxation → Enable GST = YES.
- Set/Alter GST details = YES → Enter State and GSTIN.
Step III Create Ledgers
| Ledger | Under Group | Statutory / Tax settings |
|---|---|---|
| SGST | Duties and Taxes | GST; State Tax; 14% |
| CGST | Duties and Taxes | GST; Central Tax; 14% |
| Genuine Leather Bags | Sundry Creditors | Enter address and GST details |
| M/s Shoppers Stock | Sundry Debtors | Enter address and GST details |
| Purchase Leather Handbags A/c | Purchase Accounts | GST Applicable: Yes; CGST+SGST 14%+14% |
| Sales Leather Handbags A/c | Sales Accounts | GST Applicable: Yes; CGST+SGST 14%+14% |
Step IV Inventory Setup
- Units of Measure: Create UOM "Pcs" (Pieces).
- Stock Group: Create "Bags".
- Stock Item: Create "Leather Handbags" under Bags with unit Pcs.
Step V Voucher Entries
Purchase Voucher (F9) — 01-08-2019
- Gateway of Tally → Accounting Vouchers → Purchase (F9).
- Date 01-08-2019; Party A/c: Genuine Leather Bags; Purchase Ledger: Purchase Leather Handbags A/c.
- Item: Leather Handbags; Qty: 150 Pcs; Rate: 2500 each; Tax: SGST 14% + CGST 14% → Final Amount ₹4,80,000.
Sales Voucher (F8) — 02-09-2019
- Accounting Vouchers → Sales (F8).
- Date 02-09-2019; Party A/c: M/s Shoppers Stock; Sales Ledger: Sales Leather Handbags A/c.
- Item: Leather Handbags; Qty: 80 Pcs; Rate: 3500 each; Tax: SGST 14% + CGST 14% → Final Amount ₹3,20,000.
Step VI Display and Print Reports
- Print Purchase and Sales vouchers: Gateway of Tally → Display → Day Book → select voucher type and period → Print.
- GST Reports: Gateway of Tally → Display → Statutory Reports → GST → GSTR-2 or Annual Computation.
GSTR-2
Final Notes
- Ensure statutory tax types and percentages are set correctly in ledger statutory information.
- Check the period when printing Day Book to include voucher dates.