Managing GST
Overview
Goods and Services Tax (GST) is a key indirect tax on goods and services, often complex for multi-branch or multi-product businesses. iVendNext streamlines GST setup, calculation, and reporting for easy compliance. This guide walks you through managing GST in the system.
1. What is GST?
GST is a value-added tax levied on the supply of goods and services. It replaces multiple indirect taxes like VAT, service tax, and excise duty, creating a unified tax system. GST is divided into three components:
CGST (Central GST): Collected by the central government.
SGST (State GST): Collected by the state government.
IGST (Integrated GST): Collected by the central government for inter-state transactions.
2. Key Features of GST Management in iVendNext
iVendNext provides a comprehensive suite of tools to manage GST, including:
GST Calculation: Automatically calculate CGST, SGST, and IGST based on transaction details.
GST Reporting: Generate GST-compliant reports, including GSTR-1, GSTR-3B, and more.
Multi-Branch Support: Manage GST for businesses with multiple branches or locations.
Tax Templates: Configure GST rates for different products and services using Sales Taxes and Charges Templates and Purchase Taxes and Charges Templates.
GST-Inclusive Pricing: Support for tax-inclusive pricing, where GST is included in the product price.
3. Setting Up GST in iVendNext
3.1 Prerequisites
Before setting up GST in iVendNext, ensure that:
Your business is registered for GST and has a valid GSTIN.
The Chart of Accounts has been configured to include GST-related accounts (e.g., CGST, SGST, IGST).
The Item Master has been set up with appropriate GST rates for each item.
3.2 Configuring GST Rates
Navigate to the Item Tax Template:
Go to Home > Accounting > Tax Masters > Item Tax Template.
Create a New GST Template:
Click on New to create a new tax template.
Enter a Title for the template (e.g., "GST 18%").
Set the Type to "On Net Total".
Select the appropriate Account Head (e.g., CGST, SGST, or IGST).
Enter the Rate (e.g., 9% for CGST and 9% for SGST, or 18% for IGST).
Add a Description (e.g., "GST on Sales").
Save the Template:
Click Save to save the template.
3.3 Assigning GST Rates to Items
Once the GST template is created, assign it to items in the Item Master:
Navigate to the Item Master:
Go to Home > Stock > Item.
Select the Item:
Choose the item to which you want to apply the GST rate.
Assign the GST Template:
In the Taxes section, add a row and select the GST template you created.
Save the changes.
4. Managing GST for Multiple Branches
For businesses with multiple branches, iVendNext allows you to manage GST for each branch separately. This is particularly useful for businesses operating in different states, where IGST may apply to inter-state transactions.
4.1 Setting Up Branch-Specific GST
Navigate to the Branch Master:
Go to Home > Settings > Company > Branch.
Configure GST Details:
Enter the GSTIN for each branch.
Set the State for each branch to ensure the correct GST (CGST/SGST or IGST) is applied.
Save the Branch Details:
Click Save to save the branch details.
4.2 Handling Inter-State Transactions
For inter-state transactions, iVendNext automatically applies IGST based on the branch and customer locations. Ensure that:
The Customer Master includes the customer’s state and GSTIN.
The Branch Master includes the branch’s state and GSTIN.
5. Generating GST Reports
iVendNext allows you to generate GST-compliant reports, such as GSTR-1 and GSTR-3B, directly from the system. These reports can be exported and submitted to the tax authorities.
5.1 Generating GSTR-1
Navigate to the GST Reports:
Go to Home > Accounting > GST > GSTR-1.
Select the Reporting Period:
Choose the period for which you want to generate the report.
Generate the Report:
Click on Generate to create the GSTR-1 report.
Export the report in the required format (e.g., JSON) for submission.
5.2 Generating GSTR-3B
Navigate to the GST Reports:
Go to Home > Accounting > GST > GSTR-3B.
Select the Reporting Period:
Choose the period for which you want to generate the report.
Generate the Report:
Click on Generate to create the GSTR-3B report.
Export the report for submission.
6. Important Points To Remember
Some of the key points to remember are:
Regular Updates: Regularly update GST rates and templates to ensure compliance with changing tax regulations.
Accurate Data Entry: Ensure that all customer, supplier, and item details are accurately entered in the system.
Testing: Test GST configurations in a controlled environment before applying them to live transactions.
Related Articles
Managing Taxes
Overview Tax Management in iVendNext makes handling Sales Tax, Purchase Tax, and GST easy and accurate. It helps businesses stay compliant, manage complex tax setups, and file returns on time. This article covers how iVendNext supports tax setup, ...Naming Series Configuration as per GST Rules
Overview To comply with India’s GST rules, invoices in iVendNext must use a properly configured naming series. Rule 46(b) requires a serial number (up to 16 characters) using letters, numbers, hyphens, or slashes. This article explains how to set it ...Managing Payments
Overview Whether you are receiving payments from Customers or making payments to Suppliers, this article will guide you through the key components of managing payments in iVendNext, including Payment Entries, Multi-Currency Payments, Payment Terms, ...Managing Supplier Item Codes
Overview This article will guide you through the steps to manage supplier item codes effectively, ensuring smooth purchase transactions and better supplier collaboration. Why Track Supplier Item Codes? In a retail business environment you deal with ...Managing Modes of Payment
Overview Managing how payments are made or received is key to smooth operations. iVendNext’s Modes of Payment feature lets you set up options like cash, bank transfers, and more. This article explains how to create, manage, and use them for better ...