Calculation of GST Based on Slab Rate, Cess on Quantity and Value

You can define the percentage of GST for a particular price range with/without additional ledgers, or the cess amount per unit, or cess on quantity and value, in the stock item master. These rates will get applied while recording the purchase or sale of the stock items.

GST on Slab Rate by Considering the Value of Apportioned Additional Ledger

Stock Item

1. Gateway of Tally > Alter > type or select Stock Item > and press Enter.
   Alternatively, press Alt+G (Go To) > Alter Master > Stock Item > and press Enter.
2. Specify the required details in fields Name, Under, and Units.
3. Set the option GST Applicable to Applicable.
4. Enable the option Set/Alter GST Details to open GST Details screen.
5. Specify the Description and HSN/SAC.
6. In the GST Details screen , press F12(Configure) > set Allow HSN/SAC details to Yes.
7. Select On Item Rate as the Calculation Type. The Tax on Item Rate screen appears.
8. If you want to consider the additional expenses or incomes as part of item value, to arrive at the applicable slab rate, set the option Consider additional expense/income ledger for slab rate calculation to Yes. Based on the slab rate in which the calculated amount falls, the corresponding GST rate will appear in your invoice.
9. Enter the price range under Rate, and the percentage of Integrated Tax Rate
   • Accept the screen, and return to the GST Details screen.
10. Accept the screen. As always, you can press Ctrl+A to save.

Sales invoice

1. Gateway of Tally > Vouchers > press F8 (Sales).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
2. Select the stock item, and enter the quantity and rate per unit.
3. Select the additional ledger enabled for apportionment, and enter the amount.
4. Select the GST ledgers. The taxes are calculated on the slab rate arrived at by considering the value of apportioned additional ledger to stock item rate.
5. To display the Tax Analysis screen
   Press Ctrl+O (Related Reports) > type or select VAT – Tax Analysis> and press Enter.
   

   Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
   Press Ctrl+I (More Details) > type or select VAT – Tax Analysis> and press Enter.

   • Press Alt+F5 (Detailed) in the Tax Analysis screen to view the tax break-up for the stock item. The GST is calculated on item rate by considering the additional ledger values.
     
6. Press Esc to return to the sales invoice.
7. Accept the screen. As always, you can press Ctrl+A to save.

GST on Slab Rate by Excluding the Value of Apportioned Additional Ledger

Stock item

1. Gateway of Tally > Alter > type or select Stock Item > and press Enter.
   Alternatively, press Alt+G (Go To) > Alter Master > Stock Item > and press Enter.
2. Specify the required details in fields Name, Under, and Units.
3. Set the option GST Applicable to Applicable.
4. Enable the option Set/Alter GST Detailsto open GST Details screen.
5. Specify the Description and HSN/SAC.
6. Select On Item Rate as the Calculation Type. The Tax on Item Rate screen appears.
7. If you want to consider the additional expenses or incomes as part of item value to arrive at the applicable slab rate, retain the option Consider additional expense/income ledger for slab rate calculation as No. Based on the item rate, the corresponding GST rate will appear in your invoice.
   
8. Enter the price range under Rate, and the percentage of Integrated Tax Rate.
9. Accept the GST Details screen. As always, you can press Ctrl+A to save.

Sales invoice

1. Gateway of Tally > Vouchers > press F8 (Sales).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
2. Select the stock item, and enter the quantity and rate per unit.
3. Select the additional ledger enabled for apportionment, and enter the amount.
4. Select the GST ledgers. The taxes are calculated on the slab rate arrived at by excluding the value of apportioned additional ledger.
5. To display the Tax Analysis screen
   Press Ctrl+O (Related Reports) > type or select VAT – Tax Analysis> and press Enter.
   

   Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
   Press Ctrl+I (More Details) > type or select VAT – Tax Analysis> and press Enter.

   • Press Alt+F5 (Detailed) in the Tax Analysis screen to view the tax break-up for the stock item. The GST is calculated on item rate by considering the additional ledger values.
     
6. Press Esc to return to the sales invoice.
7. Accept the screen. As always, you can press Ctrl+A to save.

Define GST Rate Based on Slab Rate or Price Range – Same Item of Different Price per Unit

Stock item

1. In the Stock Item Alteration screen, set the option GST Applicable to Applicable.
2. Enable the option Set/Alter GST Details to open GST Details screen.
3. Specify the Description and HSN/SAC.
4. Select On Item Rate as the Calculation Type. Enter the price range under Rate, and the percentage of Integrated Tax Rate.
   
5. Accept the GST Details screen. As always, you can press Ctrl+A to save.

Sales invoice

1. Gateway of Tally > Vouchers > press F8 (Sales).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
2. If you are selling the same stock item at a different price per unit depending on the stock available, you can select the same stock item twice in the invoice and enter the applicable rate per unit.
3. Select the GST ledgers. The taxes are calculated based on the price range defined in the stock item master.
4. To display the Tax Analysis screen
   Press Ctrl+O (Related Reports) > type or select VAT – Tax Analysis> and press Enter.
   

   Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
   Press Ctrl+I (More Details) > type or select VAT – Tax Analysis> and press Enter..

   • Press Alt+F5 (Detailed) in the Tax Analysis screen to view the tax break-up for the stock item. The GST is calculated on item rate by considering the additional ledger values.
     
5. Press Esc to return to the sales invoice.
6. Accept the screen. As always, you can press Ctrl+A to save.

Tax rate calculation for change in rate slab

If the rate slab of your stock items changes due to any applicable discounts, you can override the tax rates at the transaction level. To override tax rate defined for the stock items, in the invoice

1. In the Sales invoice, Press F12 (Configure), Set Modify Tax Rate details of GST to Yes.
2. On selecting the stock item, in the Tax Classification Details screen, Press F12 (Configure), set Override tax rate to Yes. and press Enter.
3. Enter the tax rate applicable based on the rate slab of the stock item.

Calculating Cess Based on Value and Quantity

Stock item

1. Gateway of Tally > Alter > type or select Stock Item > and press Enter.
   Alternatively, press Alt+G (Go To) > Alter Master > Stock Item > and press Enter.
2. Specify the required details in the fields Name, Under, and Units.
3. Set the option GST Applicable to Applicable.
4. Enable the option Set/Alter GST Details to open the GST Details screen.
5. Specify the Description and HSN/SAC.
6. Select On Value as the Calculation type, and Taxability as Taxable.
7. Enter the percentage of Integrated Tax Rate.
8. For Cess:
   • Enter the percentage of Integrated Tax. The Central Tax and State Tax rates are displayed.
   • 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.

9. Accept the GST Details screen. As always, you can press Ctrl+A to save.

Sales invoice

1. Gateway of Tally > Vouchers > press F8 (Sales).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
2. Select the central and state tax ledgers, or integrated tax ledger (for interstate sales).
3. Select the cess ledgers defined with valuation types Based on Quantity and Based on Value. The taxes are calculated based on the cess rate and cess rate per unit defined in the stock item master.
4. To display the Tax Analysis screen
   Press Ctrl+O (Related Reports) > type or select VAT – Tax Analysis> and press Enter.
   

   Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
   Press Ctrl+I (More Details) > type or select VAT – Tax Analysis> and press Enter.

   • Press Alt+F5 (Detailed) in the Tax Analysis screen to view the tax break-up for the stock item. The GST is calculated on item rate by considering the additional ledger values.
     
5. Press Esc to return to the sales invoice.
6. Accept the screen. As always, you can press Ctrl+A to save.

Changing the valuation type of cess in the invoice

You can override the valuation type of cess at the transaction level.

1. In the Sales invoice, press F12 (Configure) > set Modify Tax Rate details of GST to Yes.
2. On selecting the stock item, in the Tax Classification Details screen, Press F12 (Configure), set Override tax rate to Yes.
3. Set Allow override cess valuation type/tax rate based on quantity to Yes and press Enter.
4. Select the Valuation Type of Cess as Based on Value and Quantity, and enter the cess rate and cess rate per unit.
   

Defining Cess Amount Based on Quantity

Stock item

1. Gateway of Tally > Create > type or select Stock Item > and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Stock Item > and press Enter.
2. Specify the required details in fields Name, Under, and Units.
3. Set the option GST Applicable to Applicable.
4. Enable the option Set/Alter GST Details to open GST Details screen.
5. Press F12 (Configure) and set the option Select Valuation Type to Yes, and accept the Configuration screen.
6. In the GST Details screen
   • Specify the Description and HSN/SAC.
   • Set the Calculation Type as On Value.
   • Set the Valuation Type of Cess as Based on Quantity, and enter the Rate per unit.
   • Press Enter to save, and return to the Stock Item Creation screen.
7. Accept the screen. As always, you can press Ctrl+A to save.

Sales invoice

1. Gateway of Tally > Vouchers > press F8 (Sales).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
   
2. Select the GST ledgers. The taxes are calculated based on the rates defined in the stock item master.
3. Select the cess ledger defined with the valuation type Based on Quantity. The cess is calculated based on the rate per unit defined in the stock item master.
4. To display the Tax Analysis screen
   Press Ctrl+O (Related Reports) > type or select VAT – Tax Analysis> and press Enter.
   

   Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
   Press Ctrl+I (More Details) > type or select VAT – Tax Analysis> and press Enter.

   • Press Alt+F5 (Detailed) in the Tax Analysis screen to view the tax break-up for the stock item. The GST is calculated on item rate by considering the additional ledger values.
     
   • Press Esc to return to the sales invoice.
5. Accept the screen. As always, you can press Ctrl+A to save.