GST is an indirect tax introduced by the Indian government. GST is a single tax that will replace all the indirect taxes in India. It is the tax we need to pay on the supply of good and services. Any business who is supplying Good and Tax is responsible to charge GST.
Good and Service Tax is divided into three parts: Inter-State GST, State Good, and Services Tax(SGST) and Central Goods and Services(CGST). CGST will be levied by the Central government on Goods and Services.
SGST will be levied by the State Government on Goods and Services. Interstate GST will be levied by Central Government on Inter-state trade of Goods and Services.
There is a total of four slabs of Good and Service Tax:
- 5 Percent Tax slab: This category is applicable for items that are used daily but are not considered as a necessity. Eg: Services such as Train or cab services.
- 12 Percent Tax slab: This category is applicable for items which are not necessary but are used by a large number of people.
- 18 Percent Tax slab: This category is applicable for items which are used by middle-class people.
- 28 Percent Tax slab: This category is applicable for Luxury good and Health hazard and it is the most charged tax under GST. Toxic items such as Cigarettes and Alcohol also fall under this category.
So, Today we are going to learn how to do GST Payment entry in tally. Follow the article ahead to find out
How to do GST Payment Entry in Tally
It is possible to record payments such as Penalty, Fees, Interest and other payment made to the GST department using a ‘tax payment voucher’. Payment voucher is also known as Form 1040-V. The thing to be noted is that payments are paid separately for Central tax and State Tax. Follow the article below to learn how can you do GST Payment entry in tally.
- Open tally and go to the gateway of tally and select Accounting voucher >F5 and then select Payment.
- Now, locate ‘S: Stat payment’ and click on it.
- You have to enter all the required detail in the box. Then, select the payment type as ‘Regular’.
- Now, Go to ‘Account’ and select the bank from which payment is going to be made.
- Click on the ‘Central and Tax Ledger’. If you are going to pay penalty, interest, late fee or other dues, select one of those ‘ledgers’ to make the payment.
- Now, select the type of payment that has to be made to the GST department. You have to select from one of these: Not applicable, Interest, Late fee, Others, and Penalty. Select one and continue.
- Enable ‘Provide GST detail’ option to view the Bank details.
- You have to select a ledger in the Bank allocation screen. Then, enter the amount and fill in all the payment details.
Save it. Other payments to GST departments can also be recorded using this method.
Note: You can also enter the details of the bank in the challan reconciliation report if it not available in the form.