How to Migrate Your Existing Company From VAT to GST System
Why Upgrade
As we know GST Tax System has been implemented in India, so your existing software data need to be upgraded as per GST Tax structure.
Change Financial Year to migrate to GST
To Migrate to new GST system, the best recommended practice is to Change the Financial year of existing company to start new year from 1-7-2017 to 31-03-2018
Reason behind change financial year
1) Every business have no. of adjustments or rectifications to be made in existing invoices.
2) As In GST, we need convert our VAT Slabs to GST System, then existing vouchers modification becomes cumbersome.
3) All the settings are pre-defined in case we change our financial year.
Steps Involved (In Brief)
Step 1 = Download Latest Setup of your software
Step 2 = Install this setup on your PC
Step 3 = Open Existing company and close it.
Step 4 = Change Financial Year of Existing company. New financial Year From 1-7-17 to 31-03-18
A New company will be shown with same name and Financial Year Range from 1-7-17. Open this company for GST Billing. Open old company (1-4-17) for any adjustments
How to Download
Click on Download Link
e.g. Download Speed Plus 8.0 Software From www.solversolutions.in and install this setup on your PC.
Enter name of technical support engineer if any you have otherwise enter your name here (Don't leave it blank)
Download Setup File
Install Setup file on your PC.
It will create a Speed Plus 8.0 Folder in your "D:\" Drive
Your Existing Folder Name is "Speed Plus 7.0"
Speed Plus 7.0 Software was used till VAT system. now you need to convert it in GST system.
You have all Data in "D:\Speed Plus 7.0\Data" Folder
Copy All folders from "D:\Speed Plus 7.0\Data" Folder To "D:\Speed Plus 8.0\Data" Folder
Run Speed Plus 8.0 and Open existing company 1 or 2 times.
Change Financial Year of existing company
You can see there are 2 companies. Open 01-07-2017 company for GST. Open 01-04-17 company for any modification in existing company.
Configure Your Item Master
Define HSN Codes and select GST Tax Slab for all the items.
HSN Codes Link = https://drive.google.com/open?id=0B4CQIF7CALZrNzQ0MGVCX2FsRzg
Make Sure you have selected GST In Options
Create New / Update Sale Types
Basically there are 4 types of sales
1) Interstate B2B Sale: if customer belongs to some another state, then select this Sale Type. Only IGST Will be charged on taxable amount. Input Tax credit is available to taxable person against this invoice. Customer must be taxable person with GSTIN No.
2) Interstate Retail Sale: if customer is non taxable and belongs to some another state, then select this Sale Type. Only IGST Will be charged on taxable amount. Input Tax credit will not available to consumer against this invoice. Customer must be taxable person with GSTIN No.
2) Local Retail Sale: Choose this Invoice if your customer is within state and DO NOT HAVE GSTIN No. (Unregistered Person / end user / consumer). SGST and CGST will be calculated on taxable amount. Input Tax Credit (ITC) will not be available to a taxable person against this invoice.
3) Local B2b Sale: Choose this Invoice if your customer is within state and have GSTIN No. (registered GST Dealers). SGST and CGST will be calculated on taxable amount. Input Tax Credit (ITC) will be available to a taxable person against this invoice
Create Purchase Types in the same way
Create New Tax Slabs
Divide Total GST % in SGST and CGST in 50-50 Ratio
Keep IGST as Total Tax %
4 kinds of tax percentages being introduced are
- 5% GST
- 12% GST
- 18% GST
- 28% GST
In case of Local Billing, SGST and CGST will be calculated and In case of Interstate Bills, Only IGST will be calculated