Where as interstate sale is the sale happening between two states.Ī Registered seller or dealer selling products or service within his state,He has to charge State GST & Central GST. Less GST on purchase from manufacturer = 180Įffectively the Distributor added Rs 100 as margin, this the value addition and he paid tax on 18% of 100 = 18 GST Tax structureīasically there are two types of sale in GST.

The distributor can deduct this amount when he is paying tax.

When Distributor buying goods from manufacturer he paid Rs 180 as tax. Here effectively The Distributor need to pay GST on Rs 100.That is Rs 18. In every stage of the supply chain, you see the seller adds his margin on the base value.for exampleĭistributor Added Rs 100 on base value and sold for 1298 Including 18% GST. earlier we had to charge VAT on goods and service tax on services.Now after GST implementation a single tax has come into existence which charges on every addition of value during the process of sale.That is from manufacturer to the end retailer charges GST on the value or profit or margin he adds.The below table will explain how GST work on value addition. GST is an indirect tax levied on goods and services. Before we go let’s have some basics of GST. GST sales voucher creation is almost similar to VAT entry in tally. GST has subsumed many existing Indirect taxes.In this chapter we will discuss about how to enter a sale entry with gst in tally erp 9.

GST is the latest tax reformation in India.

Tally invoice sample