Assigning Tax Accounts to India GST Types

Assigning tax accounts to a GST type involves selecting the tax accounts where GST will be deposited. The India Localization SuiteTax Engine SuiteApp uses the GST tax types to track GST in the chart of accounts.

To assign tax accounts for a GST type:

Go to Setup > Tax > Tax Types.
Click Edit next to the tax type to which you want to add tax accounts.
Click the Accounts subtab.
Select a nexus. The list displays the nexuses available for India only.
Select the Tax on Sales account.
Select the Tax on Purchase account.
Click Save.

The following table lists the different GST tax types along with their description and setup instructions.

India GST Tax Type	Description
CGST	This type is used for regular Central Goods & Services Tax (CGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.
IGST	This type is used for regular Integrated Goods & Services Tax (IGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.
SGST	This type is used for regular State Goods & Services Tax (SGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.
UTGST	This type is used for regular Union Territory Goods and Services Tax (UTGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.
GST Cess	This type is used for regular GST Cess, which applies to both sales and purchase transactions.
NonRecovery_CGST	This type is used for purchase transactions, which are nonrecoverable tax for CGST. The tax amount calculated is added to related item or expense cost.
NonRecovery_IGST	This type is used for purchase transactions, which are nonrecoverable tax for IGST. The tax amount calculated is added to related item or expense cost.
NonRecovery_SGST	This type is used for purchase transactions, which are nonrecoverable tax for SGST. The tax amount calculated is added to related item or expense cost.
NonRecovery_UTGST	This type is used for purchase transactions, which are nonrecoverable tax for UTGST. The tax amount calculated is added to related item or expense cost.
NonRecovery_GSTCess	This type is used for purchase transactions with nonrecoverable tax for GST Cess. The tax amount calculated is added to the related item or expense costs.
Reverse Charge_CGST	This type is used for CGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.
Reverse Charge_IGST	This type is used for IGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.
Reverse Charge_SGST	This type is used for SGST which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.
Reverse Charge_UTGST	This type is used for UTGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.
Reverse Charge_GSTCess	This type is used for GST Cess, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.
Offset_CGST	This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of CGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_CGST and Nonrecovery_CGST. You must define the tax account for purchase.
Offset_IGST Note: When selecting a Tax on Purchase account for all offset tax types, the tax account must be the same as the Tax on Purchase account set up on your reverse charge tax types.	This type is used for offsetting the Tax on Purchase account set up on your Reverse Charge tax type of IGST, which is under reverse charge and non recoverable. It is always used together with ReverseCharge_IGST and Nonrecovery_IGST. You need to define the tax account for purchase.
Offset_SGST	This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of SGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_SGST and Nonrecovery_SGST. You must define the tax account for purchase.
Offset_UTGST	This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of UTGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_UTGST and Nonrecovery_UTGST. You must define the tax account for purchase.
Offset_GSTCess	This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of GST Cess, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_GSTCess and NonRecovery_GSTCess. You must define the tax account for purchase.

India GST Tax Type

Description

CGST

This type is used for regular Central Goods & Services Tax (CGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.

IGST

This type is used for regular Integrated Goods & Services Tax (IGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.

SGST

This type is used for regular State Goods & Services Tax (SGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.

UTGST

This type is used for regular Union Territory Goods and Services Tax (UTGST), which applies to both sales and purchase transactions. You must define the tax accounts for purchase and sales.

GST Cess

This type is used for regular GST Cess, which applies to both sales and purchase transactions.

NonRecovery_CGST

This type is used for purchase transactions, which are nonrecoverable tax for CGST. The tax amount calculated is added to related item or expense cost.

NonRecovery_IGST

This type is used for purchase transactions, which are nonrecoverable tax for IGST. The tax amount calculated is added to related item or expense cost.

NonRecovery_SGST

This type is used for purchase transactions, which are nonrecoverable tax for SGST. The tax amount calculated is added to related item or expense cost.

NonRecovery_UTGST

This type is used for purchase transactions, which are nonrecoverable tax for UTGST. The tax amount calculated is added to related item or expense cost.

NonRecovery_GSTCess

This type is used for purchase transactions with nonrecoverable tax for GST Cess. The tax amount calculated is added to the related item or expense costs.

Reverse Charge_CGST

This type is used for CGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.

Reverse Charge_IGST

This type is used for IGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.

Reverse Charge_SGST

This type is used for SGST which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.

Reverse Charge_UTGST

This type is used for UTGST, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.

Reverse Charge_GSTCess

This type is used for GST Cess, which is under reverse charge. This is a default recoverable tax and applies to purchase transactions only. You must define the tax accounts for purchase and sales.

Offset_CGST

This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of CGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_CGST and Nonrecovery_CGST. You must define the tax account for purchase.

Offset_IGST

Note:

When selecting a Tax on Purchase account for all offset tax types, the tax account must be the same as the Tax on Purchase account set up on your reverse charge tax types.

This type is used for offsetting the Tax on Purchase account set up on your Reverse Charge tax type of IGST, which is under reverse charge and non recoverable. It is always used together with ReverseCharge_IGST and Nonrecovery_IGST. You need to define the tax account for purchase.

Offset_SGST

This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of SGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_SGST and Nonrecovery_SGST. You must define the tax account for purchase.

Offset_UTGST

This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of UTGST, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_UTGST and Nonrecovery_UTGST. You must define the tax account for purchase.

Offset_GSTCess

This type is used to offset the Tax on Purchase account set up on your reverse charge tax type of GST Cess, which is under reverse charge and nonrecoverable. It is always used together with ReverseCharge_GSTCess and NonRecovery_GSTCess. You must define the tax account for purchase.

To assign tax accounts for a GST type:

Related Topics