When you configure your organisation in Zoho Books with your GSTIN and state, and set up each customer and vendor with their GSTIN and GST treatment, Zoho Books knows the GST profile of every transaction party. On every invoice you raise, it determines whether the supply is intra-state (both parties in the same state, attracting CGST and SGST at equal rates) or inter-state (parties in different states, attracting IGST at the combined rate). The correct tax is calculated on each line item based on the HSN or SAC code’s assigned rate.
Zoho Books supports the full GST compliance workflow for Indian businesses: GSTR-1 data export for outward supplies (B2B and B2C), GSTR-3B summary for tax payment, GSTR-2A and 2B reconciliation for input tax credit verification, e-invoice generation with IRN and QR code for eligible businesses, e-way bill generation for goods above INR 50,000, and TDS and TCS tracking. The software is updated by Zoho whenever the government announces GST rate changes or new compliance requirements.
Initial GST setup involves: entering your organisation’s GSTIN in Organisation Profile, entering each customer’s and vendor’s GSTIN in their contact records, assigning HSN and SAC codes to all items, configuring tax rates in Settings under Taxes, and setting the correct GST treatment for each contact (Registered Regular, Composition, Unregistered, Consumer, or Overseas). Correct setup at each stage is essential: if the customer’s state is wrong, Zoho Books will apply CGST+SGST instead of IGST, creating a tax mismatch that requires a credit note to correct.
GST (Goods and Services Tax) in Zoho Books is India’s unified indirect tax that Zoho Books automates by calculating CGST, SGST, or IGST on every transaction and generating GSTR-1, GSTR-3B, and other compliance reports.
Zoho Books stores your GSTIN, applies the correct tax type based on transaction parties’ states, tracks input tax credits from vendor bills, generates GSTR-1 and GSTR-3B data, and supports e-invoicing and e-way bill generation.
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