Zoho Books determines the supply type (intra-state or inter-state) by comparing your organisation’s registered state with the billing state of the customer or vendor on the transaction. If both are in the same state, the supply is intra-state and Zoho Books applies CGST and SGST in equal parts. For example, a Maharashtra supplier selling to a Maharashtra customer at 18% GST will see 9% CGST and 9% SGST on the invoice. For a Maharashtra supplier selling to a Karnataka customer, Zoho Books applies 18% IGST instead.
When you receive a bill from an intra-state vendor, the CGST portion of the bill represents your CGST input tax credit. Zoho Books records this in the “CGST Input Tax Credit” asset account automatically. You can offset this CGST ITC against your CGST Output Tax Payable when filing GSTR-3B, reducing the net cash payment to the government. Zoho Books displays both balances in the GST Summary report so you can confirm the net liability before filing.
The GSTR-1 report in Zoho Books breaks down all outward supplies by tax rate and shows the CGST amount separately in each row. The GSTR-3B summary shows total CGST output, total CGST ITC available, and the net CGST payable in cash. Keeping these figures accurate in Zoho Books throughout the month means no last-minute scramble to compile data when the return is due.
CGST (Central Goods and Services Tax) is the portion of GST collected by the central government on intra-state supplies. It is half the total GST rate and is automatically calculated by Zoho Books when the supplier and recipient are in the same state.
When both your organisation and the customer are in the same state, Zoho Books applies CGST at half the applicable rate. For 18% GST, it splits into 9% CGST and 9% SGST, posting each to its own Output Tax Payable liability account.
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