Needed help with Indian Composition Scheme

I had recently started to use Manager Software and love its features . I am a Composition Dealer in India . Under Composition Scheme of Indian GST Law, We need to pay GST tax on all Purchase but We can not collect tax from the Customer. At the end of each quarter we need to pay 1% flat tax on Turnover. I am unable to configure Manager for the same.

I had tried to configure manager but the Purchase Tax liability showing under Tax Payeble which effect the Unit price of the Inventory Items…As Tax is not recoverable so I need to know how to configure manager so it can display all tax summary ( GST paid on Purchases, GST paid on Turnover) correctly.

Thanks in advance :slight_smile:

there is no straightforward method for this.
first create a suitable expense account in your chart of accounts.

for purchase,
at the end of every quarter you can make a journal entry debiting your tax payable account and crediting it to the above expense account.

for sales,
create custom tax codes and allocate it to a separate liability account other than tax payable. at the end of quarter, make a journal entry to the same expense account as above.

make a spend money transaction and select the above expense account in the line item.
you will have to calculate the tax amount manually.

For purchases, if you can’t / don’t claim the GST paid, then just ignore the Purchase Invoice GST.
If the Purchase Invoice is for an expense 100 +10% GST so 110, put 110 to the expense account.
Same for Inventory item, 15 + 10 % GST so 16.50, put 16.50 as the unit price.
Unless you need to record and report Purchases GST figures then follow above solution.

For Sales, if you have created the custom tax code correctly, then it will accumulate in the Tax Payable account (or alternate liability account) and at the end of the quarter, create the Tax Summary report and allocate the Spend Money directly to the Tax Payable / liability account

Thank you @sharpdrivetek and @Brucanna for your quick reply…Thanks for your valuable solutions. Actually we need to maintain the gst tax record of purchases also as we need to submit the details in GSTR-4 . It’s will be a great help if these feature also included in future updates.


I am not allowed to collect tax from customer or show tax under Sales invoice . We Provide bill of supply to customer. Please advice.

then you can ignore my suggestion for sales. just bill for the required amount without selecting any tax code.

Ok, Thank you.

As a composition dealer till now it is not mandatory to fill table 4A that demands details of purchases.
Anyways you can make this report using manager, even though you’ll have to do some formatting, but its not too bad.

In case of further query do reply.