GST (India)
Overview
GST in India is similar to VAT because input credits are allowed under certain circumstances, ensuring that only the value-added component is taxed.
Registration and Threshold: Businesses with an annual turnover above a specified threshold (which varies for different states) are required to register for GST. However, small businesses with turnovers below the threshold may opt for the Composition Scheme with simpler compliance requirements.
GST Returns: Registered taxpayers are required to file regular GST returns, providing details of their sales and purchases. The number and frequency of returns vary based on the size and type of business.
E-Way Bill: An electronic waybill (e-way bill) must be generated for the movement of goods beyond a certain value threshold. It ensures the correct documentation is issued and monitors the goods in transit.
E-invoicing: E-invoicing is mandatory for large corporations. This requirement may be rolled out to smaller organisations in the future.
GST Rates
In India, GST is shared between local and central governments as follows:
- Central GST (CGST): GST imposed by the Central Government.
- State GST (SGST): GST imposed by the State.
- Integrated GST (IGST): GST applicable to inter-state or inter-union transactions.
- Union Territory GST (UTGST): GST applicable to the supply of goods or services to Indian Union Territories that are governed by the Central Government.
The tax rates on goods and services were changed effective September 2025. An organisation must carefully set up each material or service to correctly reflect the GST percentage applicable to that item.
Some of the rates in 2026 are:
- 0%: Basic food and services (e.g. milk, eggs, education services, health services)
- 5%: Daily Essentials
- 18%: Automobiles and Electronic Equipment
- 40%: Luxury goods (sin taxes)
Settings
Although QuickEasy BOS Professional supports GST, some of the reference fields might refer to VAT and not GST.
General Settings
Accounting Group
| Field | Description |
|---|---|
| GST % | Enter the prevailing GST percentage on most goods and services that your business supplies. |
| GST - Default Pricing | Options are GST Exc (GST Exclusive) or GST Inc (GST Inclusive). |
| GST - Default Type: Exempt | Select the GST Type to be used for Sales or Services that are Exempt from GST. |
| GST - Default Type: Standard | Select the GST Type to be used for transactions on which you claim or pay the prevailing GST percentage. |
| GST - Reporting Frequency (Months) | Enter the number of months for which you must submit a GST return. |
| VAT/GST Model | Choose whether your country uses VAT (Value Added Tax) or GST (General Sales Tax).
|
Account Settings
Statement of Financial Position > Liabilities + Equity > Liabilities > Taxation:
Location to create a GST Control Account.
Column Settings:
- Code = Blank
- Currency = Blank
- Report = GST Only
- GST Control = Blank
- Defaults = GST Control
All other accounts
In the Report column, choose whether the amount on the report includes (GST Inc) or excludes GST (GST Exc).
- If you can claim the GST back, choose GST Exclusive (GST Exc).
- If GST does not apply or you cannot claim the GST back, choose GST Inclusive (GST Inc).
Accounting Settings
GST Types (tab): Buttons Explained
You must create a GST Type for every type of GST and for every percentage of GST, but you do not need separate GST Types for Input (GST you may claim) or Output GST (GST you charge).
When entering transactions, you select a GST code that records Output GST or lets you claim Input GST.
When capturing transactions, it is up to you to know which percentage applies and when you may claim GST Input.
Buttons Explained
| Button | Description |
|---|---|
| Add GST Type | Adds a GST Type. |
| Rebuild | Rebuilds the reports. |
| Refresh | Refreshes the page. |
| Save | Saves any changes. |
Fields Explained
GST Types (tab): Fields Explained
| Field | Description |
|---|---|
| Field Chooser (*) | Adds or removes columns. |
| ID | System-generated number for each GST Type. |
| RID | System-generated number. |
| Description | Description of the GST Type. |
| Total % | The GST rate. |
| Menu | Deletes a GST Type: click the field to show a cross, then click the cross.
|
Transaction Settings
Entry Types (tab)
Only fields applicable to GST are explained.
| Field | Description |
|---|---|
| GST Type | Select a default GST type for that Entry Type. |
| Enter |
|
| GST (Forex) |
|
Customers
Only fields applicable to GST are explained.
- GST Type: Choose a GST Type for the customer.
- VAT No.: Field to enter a Customer's GST number.
Suppliers
Only fields applicable to GST are explained.
- GST Type: Choose a GST Type for the supplier.
- VAT No.: Field to enter a Supplier's GST number.
Materials
Only fields applicable to GST are explained.
| Field | Description |
|---|---|
| GST Type | Field to override the default GST setting on Customer or Supplier documents. |
| Reference | Use the Reference field to enter the HSN code applicable to that material. |
| Price | Options to show GST Exclusive (Exc) or GST Inclusive (Inc) prices. |
Services
Only fields applicable to GST are explained.
- GST Type: Field to override the default GST setting on Customer or Supplier documents.
- Exc or Inc: Options to show GST Exclusive (Exc) or GST Inclusive (Inc) prices.
How VAT/GST Type is Selected in BOS Professional
- When creating a customer or supplier transaction, the GST Type is selected from the customer or Supplier which is linked to the transaction.
- When Materials are added to Transactions, the GST Type on the material overrides the GST linked to the customer.
- When a transaction is created directly in the Ledger, the GST Type defaults to the item linked to the Entry Type but can be changed.
- The HSN No. must be added to materials and services to correctly identify them. India uses an 8-digit HSN Number (Chapter - Heading - Subheading - Tariff).
GST Reconciliation
The offsetting process for GST in India involves setting off the following:
- An Input Credit can only be offset against an Output Credit of the same type (e.g. CGST input can only be offset against CGST output).
- The VAT Reconciliation in QuickEasy BOS Professional shows the Inputs and Outputs for every GST Type created.
Terminology
Intra-state transaction: The transaction takes place inside a state. Central and State governments levy their tax (CGST and SGST).
Inter-state transaction: The transaction takes place across multiple states. GST is levied by the Central Government and disbursed to the receiving state (IGST).
- CGST: Central Government GST
- SGST: State Government GST
- IGST: Integrated Goods and Services Tax
- Output: Sales (Outward Supplies)
- Input: Purchases (Inward Supplies)
- ITC: Input Tax Credit on Inward Supplies (Input)
- HSN: Harmonized System of Nomenclature – used to identify the Tax Type
- SAC: Service Accounting Code