GST, place of supply and tax split
How ForgeDocs decides between CGST + SGST and IGST, how each line’s tax is worked out, and what happens with exports and unregistered businesses.
On this page
Every tax figure on an invoice, proforma or quotation is calculated by ForgeDocs in code from the line items, the GST rates and two state codes. Nobody types a tax amount, and the assistant never calculates one.
CGST + SGST or IGST
The split depends on two GST state codes: your company’s, from the Company page, and the invoice’s place of supply.
| Your state | Place of supply | Tax charged |
|---|---|---|
| Karnataka (29) | Karnataka (29) | CGST + SGST, each half the rate |
| Karnataka (29) | Maharashtra (27) | IGST at the full rate |
| Karnataka (29) | Not set | CGST + SGST (treated as within your state) |
Where the place of supply comes from
On a new invoice the place of supply starts as the customer’s billing state. When the goods are shipped to an address in another state, it follows the ship-to address, and you can change it on the invoice. The invoice prints it as the state name and code, for example “Karnataka (29)”, as Rule 46 of the CGST Rules requires.
How each line’s tax is worked out
- Quantity times rate gives the line’s gross amount, to the nearest paisa.
- Any discount on the line is taken off to give its taxable value.
- The GST rate is applied to that taxable value and rounded to the nearest paisa, line by line. Rounding per line is what an auditor reconciles against; rounding once at the end can differ by a few paise.
- Within your state the line’s tax is split in two. When it does not divide evenly, the odd paisa goes to SGST, so CGST plus SGST always equals the tax.
The invoice total is rounded to the nearest rupee, and the difference is printed as a separate Round off line rather than hidden in the total.
Exports and other currencies
An invoice in any currency other than rupees carries no GST: an export of services or goods is zero rated, so the tax controls are switched off for it. Record your LUT (letter of undertaking) number under Company → Invoice defaults.
Businesses not registered for GST
If your business is not registered, turn off GST registered on the Company page. Invoices are then issued without any tax. Charging GST and printing your GSTIN are separate settings, so a registered business can also choose not to print its number.
Next: create your first invoice.