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: For the movement of goods beyond a certain value threshold, an electronic waybill (e-way bill) must be generated to ensure the correct documentation is issued and to monitor 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

Navigation: Main Menu > Setup > Settings & Defaults > Settings (tab)

Accounting Group

• GST %: Type in 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): A field to type in 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).

  • The VAT model is universal; the GST model is based on GST legislation in India.

Account Settings

Navigation: Main Menu > Setup > Accounting > Accounts (tab)

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 should include (GST Inc) or exclude GST (GST Exc).

• If you can claim the GST back, choose GST Exclusive (GST Exc).

• If GST is not applicable or you cannot claim the GST back, choose GST Inclusive (GST Inc).

Accounting Settings

Navigation: Main Menu > Setup > Accounting

VAT/GST Types (tab)

You must create a GST Type for every type of GST and for every percentage of GST, but you do need separate VAT Type for Input (GST you may claim) or Output GST (GST you charge).

When entering transactions, a GST code is selected that records Output GST or allows you to claim Input GST. 

It is up to the users capturing transactions to know which percentage is applicable and when they may claim GST Input.

• Add VAT/GST Type: Click to add an additional GST Type

• Rebuild: Rebuild the reports

• Refresh: Refreshes the page

• Save: Saves any changes

• Field Chooser (*): Used to add or remove columns.

• ID: System-generated number for each GST Type.

• RID: System-generated number.

• Description: Description of the GST Type.

• GST %: The applicable GST rate.

• Menu

  • Option to delete a GST Type: Click the field to show a cross > Click the cross to delete the GST Type.

  • GST Types that are in use cannot be deleted.

Transaction Settings

Navigation: Main Menu > Setup > Accounting

Entry Types (tab)

Only fields applicable to VAT/GST are explained.

• VAT/GST Type: Select a default GST type for that Entry Type

• Enter

  • Choose Exc (exclusive) or Inc (inclusive). 

  • This field is only applicable to Customer and Supplier documents. 

• GST Forex

  • Select a default GST Type for transactions in foreign exchange.

  • Leave blank to not force a default.

Customers

Navigation: Main Menu > Setup > Customers > double-click any Customer > Accounting (tab)

Only fields applicable to VAT/GST are explained.

• VAT/GST Type: Choose a GST Type for the Customer.

• VAT No.: Field to type a Customer's GST number. 

Suppliers

Navigation: Main Menu > Setup > Customers > double-click any Supplier > Accounting (tab)

Only fields applicable to VAT are explained.

• VAT/GST Type: Choose a GST Type for the Supplier.

• VAT No.: Field to type in a Supplier's GST number.

Materials

Navigation: Main Menu > Setup > Materials > double-click any Material > Costs & Prices (tab)

Only fields applicable to VAT are explained.

• VAT/GST Type: Field to override the default GST setting on Customer or Supplier documents.

• Reference: The Reference field can be used to enter the HSN code applicable to that material.

• Price: Options to show GST Exclusive (Exc) or GST Inclusive (Inc) prices.

Services

Navigation: Main Menu > Setup > Services > double-click any Service

Only fields applicable to VAT are explained.

• VAT/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 - Sub-heading - 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 an GGST output).

• The VAT Reconciliation in QuickEasy BOS Professional show sthe 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