GST & India Tax

Goods and Services Tax (GST) is how India taxes sales, split into central and state components (CGST and SGST) for same-state trade, or charged as a single integrated tax (IGST) across states. This feature works out the rate, the split, and the invoice details in one place.

When GST is calculated by hand, the same item gets charged IGST on a same-state sale, an HSN rate is mistyped, and input credit disappears into one tax column. Here, the rate follows the item from the HSN master, the GST splits into CGST and SGST (same state) or is charged as IGST (across states) from the place of supply, and each party's GSTIN prints on the invoice. Output GST and input GST stay in their own ledgers, so your net liability is clear.

What you can do

• Apply CGST and SGST, or IGST. The split (or the single integrated tax) is decided from the place of supply, so same-state and cross-state sales are charged correctly.
• Drive rates from the HSN master. Each item's GST rate comes from its HSN or SAC code, so the rate follows the item, not each line.
• Carry GSTIN on invoices. Hold the GSTIN for each customer and vendor, so it prints on the invoice and the place-of-supply check is right.
• Keep input GST separate. The input GST you pay (the basis for your input tax credit) posts to its own ledger account, separate from output GST, so the input side and the output side are clear.
• Post tax with the document. When you invoice a sale or book a bill, the GST and its ledger entry are created together, so the books and the tax agree.

How it works

Each item's GST rate is read from its HSN or SAC code in the master. When you post a sale or a bill, the system checks the place of supply (the buyer's state against your state), splits the GST into CGST and SGST for same-state transactions or charges IGST for cross-state, prints the parties' GSTIN on the invoice, and posts the output GST and the input GST to their own ledgers. Your output and input GST sit in separate ledgers, ready for your return.