Service Transfer
Service transfers between locations, branches or divisions having different registration numbers are taxable under GST. In such a case, if services transferred within the state from one location to another, then CGST and SGST/UTGST will be levied, other-wise, where the registration number is same, there shall be no levy. Service transferred from one state to another state, then IGST will be levied.
Create a service transfer order
Choose the
icon, enter Service Transfer Order, and then choose the related link.Select Transfer-from Code and Transfer-to Code on Service Transfer Order header. State Code and GST registration number should not be blank on Location card.
Select Ship Control Account and Receive Control Account on Service Transfer Order header.
Select G/L Account for Transfer From G/L Account No. on Shipment Line and Transfer To G/L Account No. on Receipt Line. GST Group Code, HSN/SAC Code should not be blank on G/L Account card.
For example, service for INR 10000 is being transferred on which 18% GST (9% CGST and 9% SGST/UTGST in case of Intra-State or Intra-Union Territory transaction or 18% IGST in case of Inter-State transaction), has to be charged.
GST Calculation on Service Transfer Order will appear in the Fact Box, as following:
Component Amount GST Base Amount 10000 IGST 1800 CGST 900 SGST 900 On posting of shipment in case of Intra-State or Intra-Union Territory service transfer, GL Entries will be as following:
Particulars Amount Inter-location Control Account 11800 CGST Payable Account -900 SGST/UTGST Payable Account -900 Services Account -10000 On posting of receipt in case of Intra-State or Intra-Union Territory service transfer, GL Entries will be as following:
Particular Amount Services Account 10000 SGST/UTGST Receivable Account 900 CGST Receivable Account 900 Inter-location Control Account -11800 On posting of shipment in case of Interstate service transfer, GL Entries will be as following:
Particular Amount Inter-location Control Account 11800 IGST Payable Account -1800 Services Account -10000 On posting of receipt in case of Interstate service transfer, GL Entries will be as following:
Particular Amount Services Account 10000 IGST Receivable Account 1800 Inter-location Control Account -11800