Summary
How can apparel and footwear businesses ensure accurate GST compliance for 18% tax rates across sales and purchases? Here comes LOGIC ERP to simplify this process by allowing businesses to configure 18% GST tax types for sales and purchases, automatically linking CGST, SGST, and IGST accounts, supporting inclusive tax calculations, reducing errors, and generating audit-ready reports for seamless GST management.
Introduction
Managing GST compliance for apparel and footwear businesses can be complex. With changing tax rates and the need for precise reporting, it is important to have a robust ERP solution. LOGIC ERP simplifies GST setup by allowing businesses to configure 18% GST tax types for both sales and purchases quickly and accurately.
This guide will walk you through step-by-step GST tax type setup in LOGIC ERP, ensuring seamless compliance and proper tax allocation for apparel and footwear businesses.
Step 1: Accessing the GST Tax Setup
To begin configuring GST in LOGIC ERP:
- Go to the Setup menu in your ERP system.
- Click on Setup Taxes and open the Setup Tax Types for Sale window.
This is where all GST-related tax configurations for sales will be defined.
Step 2: Configuring 18% GST Tax Types for Sales
Follow these steps to configure GST tax types for sales:
- Define the tax description as GST Sale Apparel Parallel 18%.
- Link the tax type to the GST Sale 18% account.
- Select the Sales Tax Account as SGST Output 9%.
- Assign Tax One and Tax Three as 9% in the Tax One Account column, and link to CGST Output 9%.
- Enable the Use for GST option and set the GST type to CGST/SGST.
Setting Up Inclusive Tax Types
For inclusive tax types:
- Define Tax One as 9%, Tax Two as 18%, and Tax Three as 9%.
- Keep all other settings unchanged.
Step 3: Configuring IGST Tax Types for Sales
For interstate sales (IGST):
- Enter the tax description as IGST Sale Apparel 18%.
- Allocate the IGST Sale 18% account in the Sales Account column.
- Choose IGST Output 18% in the Sales Tax Account column.
- Define Tax Three as 18% and set the GST type to IGST, marking it as Use for GST.
Similarly, create IGST Sale Apparel Parallel 18% Inclusive, linking IGST Output 18% and defining the tax percentage as 18% in Tax Two and Tax Three.
Step 4: Setting Up 18% GST Tax Types for Purchases
- Open Setup Tax Types for Purchase in LOGIC ERP.
- Follow the same steps as for sales tax setup.
- The difference here is that input accounts will be linked instead of output accounts.
- Once all purchase tax types are configured, save your changes to ensure they are applied across all purchase transactions.
Benefits of Using LOGIC ERP for GST Configuration
- Automated GST Allocation: Ensures all sales and purchase transactions are linked to the correct tax accounts.
- Seamless Compliance: Both CGST/SGST and IGST tax types are automatically configured for apparel and footwear businesses.
- Inclusive Tax Handling: Supports inclusive tax calculations to match billing requirements.
- Error Reduction: Reduces human errors in tax calculations and reporting.
- Audit-Ready Reports: Generates GST-compliant reports for faster audits.
Get Detailed Overview: How To Set Up 18% Tax Types For Both Sales And Purchases For Apparel And Footwear In LOGIC ERP.
Conclusion
Setting up 18% GST tax types in LOGIC ERP ensures accurate compliance for both sales and purchase transactions in the apparel and footwear industry. With automated allocation of tax accounts and support for CGST, SGST, and IGST, businesses can simplify GST management, reduce errors, and stay audit-ready.
By following the step-by-step guide above, businesses can confidently implement GST tax types, maintain accurate accounting, and streamline operations efficiently using LOGIC ERP GST software.
Contact our experts at +91-73411-41176 or raise a ticket for free business consultation today!
Frequently Asked Questions (FAQs)
1. What is an 18% GST tax type in Logic ERP?
An 18% GST tax type in Logic ERP is a pre-configured tax setup that calculates CGST/SGST or IGST at 18% for sales and purchases, ensuring GST compliance for apparel and footwear businesses.
2. How do I set up 18% GST for sales in Logic ERP?
Go to Setup → Setup Taxes → Setup Tax Types for Sale. Define the tax description, link sales tax accounts (SGST/CGST/IGST), and enable Use for GST.
3. How is IGST configured differently from CGST/SGST in Logic ERP?
IGST tax types are used for interstate sales. You allocate the IGST Output account and set the GST type to IGST, whereas CGST/SGST is used for intrastate sales.
4. Can I set inclusive GST tax types in Logic ERP?
Yes. Inclusive tax types can be defined with Tax One, Tax Two, and Tax Three percentages to ensure the tax is included in the item rate.
5. How do I configure GST for purchases in LOGIC ERP?
Open Setup Tax Types for Purchase and follow the same steps as sales, linking input accounts instead of output accounts. Save changes once all purchase tax types are configured.
6. Why should apparel and footwear businesses use LOGIC ERP for GST?
LOGIC ERP automates GST calculations, reduces errors, supports CGST/SGST and IGST, and provides audit-ready reports, making GST compliance seamless for apparel and footwear businesses.
