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Every toy sale and purchase at the store involves GST. Bizaxl handles the calculation automatically based on the HSN code assigned to each toy item and the GST details of your customers and suppliers. This section explains how GST is set up, how it flows through transactions, and how to use the reports for monthly return filing.
GST compliance overview showing HSN codes on items, automatic tax computation, and return reports

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Who Uses This Feature

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Before You Start

  • Your company’s GSTIN must be entered in the Company record.
  • Every item must have an HSN / SAC code and an Item Tax Template.
  • Supplier and customer GSTINs must be entered in their respective records and addresses.

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How GST Works in the Toy Store

GST rates on toys vary by category. When you assign the correct HSN code and tax template to each item, the system computes the right GST automatically on every transaction.

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Common GST Rates for Toys (India)

Always verify the correct HSN code and applicable rate with your accounts team or a GST consultant. The system applies whatever rate is configured in the Item Tax Template - it does not guess.

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Setting Up GST on Items

Every item in the catalogue must have:
  1. HSN / SAC Code - go to the item record and enter the correct 4 or 8-digit HSN code. You can also assign an HSN code at the Item Group level so all items in that group inherit it.
  2. Item Tax Template - select the template that matches the applicable GST rate (e.g., “GST 12%” or “GST 18%”). The tax template tells the system to split the rate into CGST + SGST (for intra-state sales) or IGST (for inter-state sales).
Item record showing HSN code field and Item Tax Template selection

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How GST Applies on Sales

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POS Sales (Walk-in Customers)

  • Most walk-in toy sales are to consumers within the same state.
  • The system applies CGST + SGST automatically.
  • No customer GSTIN is required for consumer sales.
  • The POS-Invoice print format shows the GST breakdown.

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B2B Sales (Schools, Organisations)

  • If the customer has a GSTIN in the same state: CGST + SGST applies.
  • If the customer has a GSTIN in a different state: IGST applies.
  • The system determines intra-state or inter-state automatically based on the company’s state and the customer’s billing address state.
  • The Sales Invoice shows the GST breakdown with the customer’s GSTIN.

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How GST Applies on Purchases

When you receive a supplier invoice:
  • The system records GST Input Tax Credit (ITC) based on the supplier’s invoice.
  • CGST, SGST, or IGST input credit is recorded automatically when the Purchase Invoice is submitted.
  • Supplier GSTIN must be correct for ITC to be valid.

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e-Invoice (IRN Generation)

For businesses above the e-Invoice threshold, every B2B Sales Invoice must have an Invoice Reference Number (IRN) generated from the GST portal. The e-Invoice Status field on the Sales Invoice shows whether an IRN has been generated. The number card Pending e-Invoices (in the GST workspace) shows how many submitted invoices are still waiting for an IRN. To generate an e-Invoice:
  1. Submit the Sales Invoice.
  2. The e-Invoice status will show “Pending.”
  3. Use the built-in e-Invoice generation tool (under the GST India workspace) to push the invoice to the GST portal and retrieve the IRN.
  4. Once generated, the IRN and QR code are embedded in the invoice print format.

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e-Waybill

For goods transported above a certain value (currently INR 50,000), an e-Waybill must be generated before the goods leave your premises. Trigger points for e-Waybill in a toy store:
  • Large B2B deliveries dispatched via Delivery Note
  • Goods received from a supplier via Purchase Receipt (inward movement)
To generate an e-Waybill on a Delivery Note:
  1. Fill in the transport details: transporter name/ID, vehicle number, mode of transport, and distance.
  2. Submit the Delivery Note.
  3. Use the e-Waybill generation option in the record to submit to the GST portal.
  4. The e-Waybill number is saved against the record.
The Pending e-Waybills number card in the GST workspace shows how many submitted invoices have not yet had e-Waybills generated.

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Monthly GST Return Filing

At the end of every month, the accounts team uses the following reports to prepare and file returns.

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GSTR-1 (Outward Supplies)

This report lists all sales invoices for the month, grouped by invoice type (B2B, B2C, exports, etc.) with HSN-wise summaries.
  1. Go to the GST India workspace.
  2. Run the GSTR-1 report for the month.
  3. Review each section for accuracy.
  4. Export and upload to the GST portal.

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GSTR-3B (Monthly Summary)

This report shows the net GST payable: output tax collected on sales minus input tax credit on purchases.
  1. Run the GSTR-3B report for the month.
  2. Verify output tax (from sales) and input tax credit (from purchases).
  3. The difference is the tax to be paid to the government.

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HSN-wise Summary

The GSTR-1 requires an HSN-wise summary of all goods sold. Since every toy item has an HSN code, this populates automatically.

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Reports and Monitoring

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Automatic Actions

When a POS Invoice is submitted:
  • GST amount is split into CGST + SGST (or IGST for inter-state)
  • The split is posted to the respective GST output tax accounts in the General Ledger
When a Purchase Invoice is submitted:
  • Input Tax Credit is posted to the CGST Input, SGST Input, or IGST Input accounts
When a Sales Invoice is submitted with e-Invoice status “Pending”:
  • The invoice is queued for IRN generation

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Best Practices

  • Assign HSN codes at setup, not at filing time. The biggest GST mistake in retail is discovering that items have no HSN code a week before the return is due. Set up every item with its HSN code when you add it to the catalogue.
  • Verify supplier GSTINs before the first purchase. An invalid GSTIN on a purchase invoice means you cannot claim ITC for that invoice. Verify on the GST portal or ask the supplier for their registration certificate.
  • Do not mix B2B and B2C sales in the same invoice. If a school is buying toys, make sure the invoice has their GSTIN. An invoice without a GSTIN is treated as B2C and cannot be used by the customer for ITC claims.
  • Generate e-Waybills before the goods leave your store. A delivery caught on the road without a valid e-Waybill can result in the goods being detained and a penalty.
  • Reconcile GSTR-2A with your purchase register every month. GSTR-2A is auto-populated from your suppliers’ GSTR-1 filings. If a supplier hasn’t filed, their invoices won’t appear, and you won’t get ITC. Follow up with suppliers who are consistently absent.
  • Archive all IRN and e-Waybill numbers. These are auditable documents. Keep them linked to the relevant invoices in the system - do not delete records.

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Troubleshooting

GST is not computing on a POS Invoice. Check that the item has an Item Tax Template. Also check that the Tax Category is correctly set in the POS Profile. The e-Invoice status is stuck on “Pending.” This usually means the GST portal connection timed out or there was a validation error. Open the Sales Invoice, check the e-Invoice section for error messages, correct the issue, and retry. GSTR-1 shows a different total from the Sales Register. There may be credit notes, amended invoices, or cancelled invoices that are included in GSTR-1 but not filtered into your Sales Register view. Adjust the filters to include all document types. The supplier’s ITC is not appearing in GSTR-3B. Check that the Purchase Invoice has been submitted and that the supplier’s GSTIN is correctly entered. If the supplier has not filed their GSTR-1, the ITC will not auto-populate from GSTR-2A. An e-Waybill was generated with the wrong vehicle number. e-Waybills can be updated (part B) before the goods transit. Open the e-Waybill record and update the vehicle details. If the waybill has expired, a new one must be generated.