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GST-Service-Transfer.md

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title description author ms.topic ms.devlang ms.search.keywords ms.date ms.author ms.service
Service Transfer
Service Transfer
v-debapd
conceptual
al
India, local, IN, English
04/01/2021
bholtorf
dynamics-365-business-central

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

  1. Choose the Search for Page or Report. icon, enter Service Transfer Order, and then choose the related link.

  2. 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.

  3. Select Ship Control Account and Receive Control Account on Service Transfer Order header.

  4. 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

See Also

GST Stock Transfer

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