1.  Introduction to GST ( IGST . CGST, SGST )

 

2.  Calculation of GST ( IGST, CGST & SGST) (Practical Assignment )

 

3.  GST on Tally.ERP 9 ( With Practical Assignment )

     Step-1  :  Activating GST for Your Company

     Step-2  : Setting Up GST Rates

     Step-3 :  Updating/Creating Sales and Purchase Ledgers for GST Compliance

     Step-4  : Restarting Voucher Numbering for GST Transactions

     Step-5 : Updating/Creating Party GSTIN/UIN

     Step-6  : Creating GST Ledgers

     Step-7  : Creating Party Ledgers for GST

     Step-8  : Recording Purchase under GST

     Step-9 : Recording GST Sales and Printing Invoices

 

4.  Generate GSTR-1 Returns / Reports under Tally.ERP9

  4.1. Table-Wise Format (Department  Format)

 4.2.    Returns Summary ( GSTR-1)

  4.2.1 Total number of vouchers for the period

  4.2.2. Included in returns

  4.2.3. Not relevant for returns

4.2.4.Incomplete/mismatch in information (to be resolved)

      (SUMMARY OF EXCEPTIONS – GSTR-1)

4.2.4.1.     No. of voucher with incomplete / mismatch in information

       4.2.4.2.  Country , State and Dealer Type not Specified

      4.2.4.3.Tax Rate / Tax Type not Specified

4.2.4.4.Nature of transaction, taxable value, rate of tax modified in voucher

4.2.4.5.  Incorrect tax type selected in tax ledger

4.2.4.6.Mismatch due to tax amount modified in voucher

4.2.4.7.  Voucher with incomplete / incorrect adjustment details ( SGTR-2)

4.2.4.8. Information required for generating table-wise details not provided

4.2.4.9.  Exception Types

     4.2.4.9.1. Item Exceptions

     4.2.4.9.2. Ledger Exceptions

4.3. GSTR-1 Particulars ( Computation Details)

     4.3.1. Outward Supplies

 

5.  Status Reconciliation (GSTR-1)

5.1.  Set Status

5.2.  Status-wise View

 

6.  Challan Reconciliation Report for GST Payments

7. Creating Income and Expenses Ledger in GST

 
8. Reverse Charge on Purchase from Unregistered Dealer (URD) | Reverse Charge in GST in Tally

Step-1:     Create Supplier Ledger i.e. Supplier (L) URD – Local

Step-2:     Similarly.. Create Supplier Ledger of Outside State i.e. Supplier (O) URD – Interstate

Step-3:     Create  Local Purchase Ledger i.e. “Purchase from URD-Local”

Step-4:     Similarly.. Create  Outside Purchase Ledger i.e. “Purchase from URD-Interstate ”

Step-5:     Recording an Invoice for Purchase from Unregistered Dealer-Local

Step-6  :   Similarly, You can Record an Invoice for Purchase from Unregistered Dealer-Interstate (Outside State)

Step-7:     View Total Tax Liability under Reverse Charge GST in GSTR2

Step-8 :    Recording a Journal Voucher Transaction for Increase in Tax Liability on Purchase from Unregistered Dealers

 
9. GST On Advance Payment Received From Customer in Tally | GST in Tally ERP 9

9.1.  Advance Receipt exclusive of tax adjusted against Sales Invoice in the same month

9.1.1.     To record a receipt voucher for advance receipt from customer exclusive of tax

9.1.2.     Sales Invoice Linked to an Advance Receipt Voucher in the same month as above.

9.2. Advance Received and Sales Invoice recorded in different months.

9.2.1.  Advance receipt voucher

9.2.2. Journal voucher to raise the liability

9.2.3. Sales Invoice against Advance Receipt of Previous Month

9.2.3. Journal Voucher to Reverse the Tax Liability raised in Journal Voucher for the Advance Received of the Previous Month.

9.3.  Reversal of GST on account of Cancellation of Advance Received.

9.3.1.  To exclude a transaction

9.3.2. To reverse the liability on cancellation of a transaction

 

10. Recording An Advance Payment To Supplier Under GST

 
11. Transferring Tax Credits of VAT, Excise, and Service Tax to GST
 
12. Recording Sales of Composite Supply under GST
(Expenses Apportioning)
 
13. ‘Nil-Rated Sales’ on GST in Tally.ERP9
 
14. ‘Exempt Sales’ on GST in Tally.ERP9
 
15. FAQ on GST in Tally.ERP 9
 
16. Common Queries About GST in Tally.ERP9
 

Simplest way to learn..
GST (
Goods And Service Tax)

[ A Complete GST Tutorial on Tally.ERP9 ]

In Tally.ERP 9

1.      Introduction to GST ( IGST . CGST, SGST )

 

2.      Calculation of GST ( IGST, CGST & SGST) (Practical Assignment )

 

3.      GST on Tally.ERP 9 ( With Practical Assignment )

         Step-1         :        Activating GST for Your Company

         Step-2         :        Setting Up GST Rates

         Step-3         :        Updating/Creating Sales and Purchase Ledgers for GST Compliance

         Step-4         :        Restarting Voucher Numbering for GST Transactions

         Step-5         :        Updating/Creating Party GSTIN/UIN

         Step-6         :        Creating GST Ledgers

         Step-7         :        Creating Party Ledgers for GST

                           Step-8            :           Recording Purchase under GST

                           Step-9            :           Recording GST Sales and Printing Invoices

 

4.      Generate GSTR-1 Returns / Reports under Tally.ERP9

4.1.       Table-Wise Format (Department Format)

4.2.       Returns Summary ( GSTR-1)

            4.2.1.     Total number of vouchers for the period

            4.2.2.     Included in returns

            4.2.3.     Not relevant for returns

            4.2.4.     Incomplete/mismatch in information (to be resolved)

                        (SUMMARY OF EXCEPTIONS – GSTR-1)

4.2.4.1.              No. of voucher with incomplete / mismatch in information

                        4.2.4.2.              Country , State and Dealer Type not Specified

                        4.2.4.3.              Tax Rate / Tax Type not Specified

4.2.4.4.              Nature of transaction, taxable value, rate of tax modified in voucher

4.2.4.5.              Incorrect tax type selected in tax ledger

4.2.4.6.              Mismatch due to tax amount modified in voucher

4.2.4.6.1.Voucher with incomplete / incorrect adjustment details ( SGTR-2)

4.2.4.7.              Information required for generating table-wise details not provided

4.2.4.8.              Exception Types

                        4.2.4.8.1.            Item Exceptions

                        4.2.4.8.2.            Ledger Exceptions

4.3.       GSTR-1 Particulars ( Computation Details)

            4.3.1.     Outward Supplies

 

5.      Status Reconciliation (GSTR-1)

5.1.       Set Status

5.2.       Status-wise View

 

6.      Challan Reconciliation Report for GST Payments

 

7.      Creating Income and Expenses Ledger in GST

 

8.      Reverse Charge on Purchase from Unregistered Dealer (URD) | Reverse Charge in GST in Tally

 

         Step-1         :     Create Supplier Ledger i.e. Supplier (L) URD – Local

         Step-2         :        Similarly.. Create Supplier Ledger of Outside State i.e. Supplier (O) URD – Interstate

         Step-3         :        Create  Local Purchase Ledger i.e. “Purchase from URD-Local”

         Step-4         :        Similarly.. Create  Outside Purchase Ledger i.e. “Purchase from URD-Interstate ”

         Step-5         :        Recording an Invoice for Purchase from Unregistered Dealer-Local

         Step-6         :        Similarly, You can Record an Invoice for Purchase from Unregistered Dealer-Interstate (Outside State)

         Step-7         :        View Total Tax Liability under Reverse Charge GST in GSTR2

         Step-8         :        Recording a Journal Voucher Transaction for Increase in Tax Liability on Purchase from Unregistered Dealers

 

9.      GST On Advance Payment Received From Customer in Tally | GST in Tally ERP 9

9.1.       Advance Receipt exclusive of tax adjusted against Sales Invoice in the same month

                        9.1.1.     To record a receipt voucher for advance receipt from customer exclusive of tax

                        9.1.2.     Sales Invoice Linked to an Advance Receipt Voucher in the same month as above.

9.2.       Advance Received and Sales Invoice recorded in different months.

9.2.1.     Advance receipt voucher

9.2.2.     Journal voucher to raise the liability

9.2.3.     Sales Invoice against Advance Receipt of Previous Month

9.2.3.     Journal Voucher to Reverse the Tax Liability raised in Journal Voucher for the Advance Received of the Previous Month.

9.3.       Reversal of GST on account of Cancellation of Advance Received.

9.3.1.     To exclude a transaction

9.3.2.     To reverse the liability on cancellation of a transaction

 

10.    Recording An Advance Payment To Supplier Under GST

 

11. Transferring Tax Credits of VAT, Excise, and Service Tax to GST

 

12. Recording Sales of Composite Supply under GST (Expenses Apportioning)

 

13. ‘Nil-Rated Sales’ on GST in Tally.ERP9

 

14. ‘Exempt Sales’ on GST in Tally.ERP9

 

15. FAQ on GST in Tally.ERP 9

 

16. Common Queries About GST in Tally.ERP9


1.  Introduction To GST ( IGST , CGST, SGST)

1.      The GST would be applicable on the supply of goods or services or both as against the present concept of tax on the manufacture and sale of goods or provision of services. It will be a destination based consumption tax.

 

2.       There will be a dual GST with the Centre and States simultaneously levying it on a common tax base. The GST to be levied on intra-State supplies of goods and/or services by the Centre will be Central GST (CGST) and that to be levied by the States will be the State GST (SGST).

 

3.      The GST to be levied on Inter-State Supply of Goods and Services and on import of goods and services (in the place of CVD and SAD) is Integrated Goods and Services Tax (IGST), which is equal to CGST plus SGST. It will be levied and collected by Centre under IGST Act, 2017. Accounts would be settled periodically between the Centre and the States to ensure that the SGST portion of IGST is transferred to the Destination State where the goods or services are eventually consumed.

 

4.       The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products, viz, petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified.

 

5.       Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.

 

6.       The GST would replace the following taxes currently levied and collected by the Centre:


a.            Central Excise duty
b.            Duties of Excise (Medicinal and Toilet Preparations)
c.            Additional Duties of Excise (Goods of Special Importance)
d.            Additional Duties of Excise (Textiles and Textile Products)
e.            Additional Duties of Customs (commonly known as CVD)
f.             Special Additional Duty of Customs (SAD)
g.            Service Tax
h.            Central Surcharges and Cesses so far as they relate to supply of goods and services


7.         State taxes that would be subsumed under the GST are:


a.         State VAT
b.         Central Sales Tax
c.          Luxury Tax
d.         Entry Tax (all forms)
e.          Entertainment and Amusement Tax (except when levied by the local bodies)
f.          Taxes on advertisements
g.         Purchase Tax
h.         Taxes on lotteries, letting and gambling

i.          State Surcharges/Additional Taxes and Cesses so far as they relate to supply of goods and services

8.         There are 5 tax rate slabs decided by the GST council 5%, 12%, 18% and 28%. In addition Cess will be levied by the Centre on certain commodities.

 

9.         The list of exempted goods and services will be common for the Centre and the States.

 

10.       Tax payers with an aggregate turnover in a financial year up to 20 lakhs would be exempt from tax. [Aggregate turnover shall include the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes under the Act viz. GST.] Aggregate turnover shall be computed on all India basis. For North East States and Sikkim, the exemption threshold shall be [ 10 lakhs]. All tax payers eligible for threshold exemption however, shall have option of paying tax and avail input tax credit (ITC) benefits.

The tax payers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption. In other words, The traders supplying goods to other states will need to register under the Goods and Services Tax (GST) even if their turnover is below Rs 20 lakh. "Rs 20 lakh registration limit is only for intra-state traders," 

11.       The traders, who have turnover below Rs 20 lakh and supply goods and services within the state, can also go for voluntary registration to avail input tax credit

"But once registered, the traders will have to pay taxes on all supplies, even if turnover is less than Rs 20 lakh,". 

Even if there were no transactions in a certain month, return would have to be filed once registration was done 

12.       Small tax payers with an aggregate turnover in a financial year up to 75 lakhs shall be eligible for composition levy. Under the scheme, a tax payer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The floor rate of tax for CGST and SGST shall not be less than [1%]. A tax payer opting for composition levy shall not collect any tax from his customers. The composition scheme is optional. The eligible taxpayers shall have the option of switching over as a regular tax payer and thereby paying tax with ITC benefits. Taxpayers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for composition scheme.

13.       Tax payers shall be allowed to take credit of taxes paid on inputs (Input Tax Credit - ITC) and utilize the same for payment of GST on outward supplies. However, no input tax credit on account of CGST shall be utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to b utilized for payment of IGST, CGST and SGST in that order. ITC of cess may be utilised for payment of cess only.

14.       HSN (Harmonized System of Nomenclature) Code shall be used for classifying the goods under the GST regime.

15.       Exports shall be treated as zero-rated supply. No tax is payable on export of goods or services but credit of the input tax related to the inward supply of inputs and input services attributed to supply of such export of goods/services shall be admissible to exporters and the same can be claimed as space refund by them. In case export is made on payment of Tax, refund of such tax shall be given to the exporters.

16.       Import of goods and services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. The IGST paid shall be available as ITC for further transactions.
17.       The laws, regulations and procedures for levy and collection of CGST, UTGST, IGST and SGST has been harmonized to the extent possible.

18.       GSTIN will be in the format as specified below, which shall have a checksum digit to locate and process several data based on this unique identification number of the taxpayer, for different business processes like populating data in the domain of connected taxpayers, managing mismatches at item level of supply and purchase data, fund settlement etc.

 

           

State Code

PAN

Entity Code

Check Digit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

 

19.       Accordingly, before filing of GSRT-3 following procedure may be followed for rectification and finalization of returns :

20.       Some points to be carefully considered post GST

 

We have never bothered to look into the expenses side of the profit and loss account with respect to earlier taxes. The time has come to make sure, all your payments above Rs. 5000 per day, are paid with GST.

 

In other words, if you are dealing with unregistered suppliers and making payments above Rs. 5000, you have to pay GST under reverse charge mechanism (RCM).

 

Exceptions:

Inclusions:

Salary and wages

Electricity

Interest

Car fuel

Government Fees

Rent

Commission payments

Printing and stationery

Repairs and Maintenance

Office Maintenance

Vehicle maintenance

Computer maintenance

Legal Fees

Consultancy Fees

Professional Fees

Audit Fees

Labour charges

Frieght and transportation expenses

Gift expenses

Business promotion expenses

Advertisement etc..

 

21.       A registered taxpayer, who is registered under the Composite Scheme will pay tax at a rate not more than 1% for manufacturer, 2.5% for restaurant sector and 0.5% for other suppliers of turnover.

 

 

2.    Calculation of GST ( IGST, CGST & SGST)

 

Example 1 : The following Transaction has been done by the Swayam Education Pvt. Ltd. Based on this transaction compute the GST payable to the Government.

1.         Purchase from Raj Infotech, 5 CDs of Antivirus Software @ Rs. 800 each, with Input GST rate @ 18%. i.e. Rs.. 720 -  [ CGST (9%) Rs.360 and SGST (9%) Rs.360 ]

2.         Purchase from Microtek India Ltd. , 10 Monitors @  Rs. 4000 each, with Input GST @ 28% i.e. Rs.11,200 – [ CGST (14%) Rs.5600 and SGST (14%) Rs. 5600. ]

3.         Purchase 2 ‘Hp-Laptop’ @ Rs. 45,000 with Input IGST @ 18% i.e. Rs. 16,200

and

2 Mi-Note 4 Mobiles @ Rs. 10,000 each with Input IGST 12% i.e. Rs.2,400 –  in Cash from  Outside State – West Bengal from Registered Shop.

4.         Sale of 5 Antivirus CDs @ Rs.1500 to Rajib Roy & Sons with output GST 18% i.e. Rs. 1350 – [CGST (9%) Rs. 675 and SGST (9%) Rs.675 ]

5.         Sale of 10 Monitors @ Rs.4500 , to H. Goenka Traders with Output GST @ 28% i.e. Rs. 12600 – [ CGST (14%) Rs. 6300 and SGST (14%) Rs. 6300 ]

6.         Sale of 2  ‘Hp-Laptop’ @ Rs 50,000 with Output GST @ 18% i.e. Rs.18,000 [ CGST (9%) Rs.9,000 and SGST (9%) Rs.9,000 ] in Cash within Odisha 

7.         Sale of 2  Mi-Note 4 Mobiles Outside State @ Rs. 15,000 each with Output IGST 12% i.e. Rs. 3600  in Cash to a Party in Andhra Pradesh.  

Solutions :

 

For PURCHASE :

IGST

CGST

SGST

For Transaction 1 : GST paid to party on assessable value of Rs.4,000 @ 18 % GST is Rs. 720

 

360

360

For Transaction 2 : GST paid  to Party on the assessable Value of Rs. 40,000 @ 28% GST is Rs. 11,200

 

5600

5600

For Transaction 3 : IGST paid on the assessable Value of Rs. 90,000 @ 18% GST is Rs. 16,200 &  Rs. 20,000 @ 12% GST is Rs. 2,400 [ 16200+2400]

18600

 

 

Total of Input GST [ IGST, SGST & CGST]

18600

5960

5960

For SALES :

 

 

 

For Transaction 6 : GST received from Party on assessable value of Rs. 7,500  @ 18% GST Rs. 1350

 

675

675

For Transaction 7 : GST received from Party on assessable value of Rs. 45,000 @ 28 % GST Rs. 12600

 

6300

6300

For Transaction 8 : GST received on the assessable Value of Rs. 1,00,000 @ 18% GST is Rs. 18,000.

 

9000

9000

For Transaction 9 : IGST received on the assessable Value of Rs. 30,000 @ 12% IGST is Rs.3600 for sale outside State.

3600

 

 

Total Output GST [ IGST, SGST & CGST]

3600

15,975

15,975

 

TABLE OF GST ADJUSTMENT :

 

Particulars

IGST

CGST

SGST

Output GST Liability

3600

15,975

15,975

Less : Input GST Credit

 

 

 

Input CGST

 

5960

 

Input SGST

 

 

5960

Input IGST

3600

10015

4985

Amount Payable i.e SGST only

NIL

NIL

5030

 

Any IGST credit will first be applied to set off IGST and then CGST.

Balance if any will be applied to setoff SGST.
So out of total input IGST of Rs. 18,600, firstly it will be completely setoff against IGST i.e. 3600. Then balance Rs.15,000 against CGST i.e. Rs. 10015 and remaining Balance of Rs. 4985 against SGST

From the total Output GST Rs.35,550, only Output SGST of  Rs. 5030 is payable.
So the Set-Off Entries will be -

1.         Setoff against CGST Output

 

            Output CGST A/c  Dr. ………                            15975

 

                        To        Input CGST     A/c                                                      5960

                        To        Input IGST       A/c                                                      10015

 

2.         Setoff against SGST Output

 

            Output SGST A/c  Dr. ………                            15975

 

                        To        Input SGST      A/c                                                      5960

                        To        Input IGST       A/c                                                      4985

                        To        Output SGST Payable A/c                                         5030

 

3.         Setoff against IGST Output

 

            Output IGST A/c  Dr. ………                             3600

 

                        To        Input IGST       A/c                                                      3600

 

4.         Final Payment of Output SGST Payable of Rs. 5030

 

            Output SGST Payable A/c  Dr. ………  5030

 

                        To        Bank                A/c                                                      5030

 

3.    GST on Tally.ERP 9

Let us take the above example and see how it works on Tally.ERP. The procedure for implementation of GST in Tally.ERP is very simple. Follow the steps given below :

 

Step-1

Activating GST for Your Company :

To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Once activated, GST-related features are available in ledgers, stock items, and transactions, and GST returns can be generated.

 

To activate GST

1.    Open the company for which you need to activate GST.

2.    Press F11 > F3.

3.         Enable Goods and Services Tax (GST) - Yes.

4.         Set/alter GST details - Yes.

State: Displays the state you have selected for your company. Helps in identifying local and interstate transactions. If you change the state, it will be updated in the company details.

5.         Specify the GSTIN/UIN for the business. This can be printed in the invoices as required. You can specify this later.

6.         Specify Applicable from date. GST will be applicable for your transactions from this date onwards.

You can record transactions using the ledgers with GST details, and print invoices with GSTIN.

Step-2

Setting Up GST Rates :

Quickly set up GST rates for your company, stock item-wise or stock group-wise, using the GST Rate Setup option. You must enable GST in your company to provide GST rates. You can set up GST rates at the company level, stock group level, stock item level, ledger group level, and ledger level.

A-     To Set GST Rates for Stock Groups and Stock Items

1.         Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup

2.         Select the stock group or stock item, and press Alt+S to provide the applicable tax rates. You can press Spacebar to select multiple stock groups or stock items. Set the tax rates and save.

The rate entered for integrated tax will be equally divided between central tax and state tax.

To view the history of tax rate changes, press Alt + L.

B-      Updating Stock Items and Stock Groups for GST Compliance

If the items you sell have different tax rates, update your stock item masters or stock groups with the applicable GST rates, and select the type of supply, as applicable.

To Update a Stock Item

In case you need different tax rates for different items, modify the stock items to include the applicable tax rates.

1.         Go to Gateway of Tally > Inventory Info. > Stock Items > Alter > select the item.

2.    Set/alter GST Details : Yes to specify the details in the GST Details screen, and save.

Note: If you have modified the tax rates before, press Alt + L to view the history of tax rate changes.

3.    Select the Type of supply.

4.    Press Ctrl + A to save.

 

To Update a Stock Group

 

1.    Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter > select the group.
2.    Set/alter GST Details: Yes to specify the details in the GST Details screen, and save.

Integrated Tax: When you enter the integrated tax, state tax and central tax are calculated as half of the integrated tax specified. You can change state tax or central tax by using F12 configuration.

3.    Press Ctrl + A to save

Step-3

Updating Sales and Purchase Ledgers for GST Compliance :

If many items you sell have the same tax rate, specify the tax rate and other GST details in your sales ledger. Similarly, if the items you purchase have the same tax rates, update your purchase ledger.

If you sell items with multiple tax rates, you can still maintain a single Sales Ledger, and record all GST details at the stock item or stock item or stock group level. You can create a single Purchase Ledger similarly.

A.      Updating or Creating a Sales Ledger : Sales @ 18%

To Create a Sales Ledger i.e. Sales @ 18%

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Enter the Name of the Sales ledger i.e. Sales @ 18%

3.         Select  Sales Account  from the List of Groups in the Under field.

4.         Set the option Inventory values are affected? to Yes ,.

5.         Is GST Applicable - Applicable

6.         Set/alter GST Details - Yes, specify the details in the GST Details screen, and save.

To view the history of tax rate changes, press Alt + L.

To specify further GST-related details, click F12: Configure.

4.         Select the Type of supply. By default the type of supply is set to Goods.

5.         Press Ctrl + A to save.

Similarly…you can create all following Sales Ledgers as per our Practical Examples by specify the Tax Rate and other GST details as above :

  • Sales @ 28%
  • Sales @ 12%

B.      Updating or Creating a Purchase Ledger : Purchase @ 18%

To Create a Purchase Ledger i.e. Purchase @ 18%

●          Follow the steps used for updating the sales ledger, with the nature of transaction and rates for purchase.

While recording a sale or purchase transaction, you can select the respective ledger.

Similarly…you can create all following Purchase Ledgers as per our Practical Examples by specify the Tax Rate and other GST details as above :

  • Purchase @ 28%
  • Purchase @ 12%

C.      Updating or Creating a Inter-State Purchase Ledger : Inter-State Purchase @ 18%

To Create a Inter-State Purchase Ledger i.e.  Inter-State Purchase @ 18%

●          Follow the steps used for updating the sales ledger, with the nature of transaction and rates for purchase.

While recording a sale or purchase transaction, you can select the respective ledger.

Similarly…you can create all following Purchase Ledgers as per our Practical Examples by specify the Tax Rate and other GST details as above :

  •  Inter-State Purchase @ 12%

D.      Updating or Creating a Inter-State Sales Ledger : Inter-State Sales @ 12%

To Create a Inter-State Sales Ledger i.e.  Inter-State Sales @ 12%

●          Follow the steps used for creating or updating the sales ledger, with the nature of transaction and rates for purchase.

While recording a sale or purchase transaction, you can select the respective ledger.

Similarly…you can create all following Purchase Ledgers as per our Practical Examples by specify the Tax Rate and other GST details as above :

Step- 4

Restarting Voucher Numbering for GST Transactions :

 It is recommended that you restart voucher numbering for GST transactions to ensure that unique voucher numbers are used for all your vouchers. If Automatic (Manual Override) is set as the method of voucher numbering, it ensures that unique voucher numbers are set for your vouchers.

You can restart voucher numbering for any voucher type.

To restart voucher numbering

1.         Go to Gateway of Tally > Accounts Info. > Voucher Types > Create.

2.         Method of Voucher Numbering? - Automatic (Manual Override).

Note:   For GST transactions, it is recommended that you restart voucher numbering to ensure that unique voucher numbers are used for all your vouchers. If Automatic (Manual Override) is set as the method of voucher numbering, it ensures that unique voucher numbers are set for your vouchers.

3.         Set the option Use Advance Configuration? to Yes.

4.         Press Enter to save. The Voucher Type Alteration (Secondary) screen appears as shown below:

●          Enter the number of the voucher in the Starting Number field.

●          Enter the required value in the Width of Numerical Part field.

●          Set the option Prefill with zero? to Yes, to add zero to the voucher number. If this option is set to No, the voucher number is left blank.

For example, if the Width of Numerical Part is specified as 3, and if Pre-fill with zero? is set to Yes, then the voucher number appears as Sales Invoice No: 001.

●          Enter the Applicable From date in the Restart Numbering column. You can specify more than one restart dates.

●          Select the required interval from the Types of Periods list in the Particulars field.

●          Define the Prefix Details in the Particulars field. Examples of prefix details are: Month of the voucher, i.e.,  April/, company information like SE/, and even fixed number series like 1000.

Note:   The numeric section begins immediately after the prefix information. Therefore, a slash (/) or some other special character is used to highlight a separation; for example, April/. The slash would cause the voucher number to appear as April/001, otherwise it would appear as April001. This simplifies fixed number series appearing, for example, as 200100001 where 2001 is the prefix, and 00001 is the starting number with a width of 5, and with leading zeros.

You can choose different prefix information for different periods, or you can continue with one. The prefix continues from the date mentioned under Applicable from to the date mentioned under Applicable from.

●          Define the Suffix Details for the voucher number. The same rules apply as that for Prefix Details.

5.         Press Enter to save.

The Sales Invoice voucher number appears as shown below:

Step- 5

Updating Party GSTIN/UIN :

Quickly update the GSTIN/UIN details for your parties group-wise from the Update Party GSTIN/UIN report. You can also provide this at the individual party ledger level. Use the Import Party GSTIN tool to import GSTINs for several parties in one shot.

To update party GSTIN or UIN

1.    Go to Gateway of Tally > Display > Statutory Reports > GST > Update Party GSTIN/UIN.

2.         Select the group and ledger for which you want to update the GSTIN/UIN.

3.         In the Update Party GSTIN/UIN screen, enter the GSTIN/UIN number for each party.

Click F5 to toggle between Show All and Show Pending.

Show All: Lists all the parties.

Show Pending: Lists the parties with missing details, such as country, state, registration type, or GSTIN/UIN.

Once you have updated the GSTIN/UIN for your parties, you can print the GSTIN details in your invoices for filing returns.

Step- 6

Creating GST Ledgers :

 

To account for the different taxes to be paid under GST (central tax, state tax, union territory tax, integrated tax, and cess), you have to create a tax ledger for each tax type.

 

In our above Practical Examples….the following GST Ledgers will be created :

i.          Input SGST                  [ State Tax at the time of Purchase Locally ]

ii.         Input CGST                 [ Central Tax at the time of Purchase Locally ]

iii.        Input IGST                   [ Integrated Tax at the time of Purchase from Outside State ]

iv.         Output SGST               [ State Tax at the time of Sale Locally ]

v.          Output CGST              [ Central Tax at the time of Sale Locally ]

vi.         Output IGST                [ Integrated Tax at the time of Sale in Outside State ]

i.        To create ‘Input SGST’ ledger

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.    In Under, select Duties & Taxes.

3.    Select GST as the Type of duty/tax.

4.    Select State Tax as the Tax type.

Note : Percentage of Calculation should be 0% ( Don’t Change ) due to multiple Tax Rat

Similarly, you can create ledgers of all above 5 GST Ledgers ( ii to vi ) by selecting the relevant Tax type under GST.

Step- 7

Creating Party Ledgers for GST :

You need to create party ledgers to record business transactions with various parties such as suppliers, customers, and so on.

On this page as per our Practical Examples ….

  • Supplier Ledger :

>>       Raj Infotech

>>       Microtek India Ltd.

  • Customer Ledger

>>       Rajib Roy & Sons

>>       H. Goenka Traders

Supplier Ledger

To create a supplier ledger i.e. Raj Infotech

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Enter the Name of the supplier's ledger i.e. Raj Infotech .

3.         Select Sundry Creditors from the List of Groups in the Under field.

4.         Set the option Inventory values are affected? to No,.

5.         In Mailing details, the State is your default local State. You can change name of State from the State List  if your Suppliers belongs to Outside State.

5.         Enable the option Set/Alter GST Details? to open the GST Details screen.

o           Select the relevant Registration Type from the List of registration Types.

o          Enter the 15-digit GSTIN or UIN issued by the tax authority.

o          If the supplier is an e-commerce operator, then enable the option Behave as e-COmmerce Operator?

The GST Details screen appears as shown below:

o     Press Ctrl+A to accept.

The Ledger Creation screen appears as shown below:

8.    Press Enter to save.

Similarly…. Create the Supplier Ledger ‘ Microtek India Ltd. ‘ as per above ,

Customer Ledger

To create a Customer ledger i.e Microtek India Ltd.

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Enter the Name of the supplier's ledger i.e. Mircrotek India Ltd. .

3.         Select Sundry Debtors from the List of Groups in the Under field.

4.         Set the option Inventory values are affected? to No.

5.         In Mailing details, the State is your default local State. You can change name of State from the State List  if your Suppliers belongs to Outside State.

6.         Enable the option Set/Alter GST Details? to open the GST Details screen.

o           Select the relevant Registration Type from the List of registration Types.

o          Enter the 15-digit GSTIN or UIN issued by the tax authority.

o          If the supplier is an e-commerce operator, then enable the option Behave as e-COmmerce Operator?

The GST Details screen appears as shown below:

o     Press Ctrl+A to accept.

The Ledger Creation screen appears as shown below:

8.    Press Enter to save.

Similarly…. Create the Customer Ledger ‘H. Goenka Traders ‘ as per above ,

 

Step- 8

Recording Purchase under GST :

Once you activate GST in your company, you can record the purchase of goods and services that attract GST using a purchase voucher. Ensure that you provide unique voucher numbers for your purchase vouchers, and use a new series of voucher numbering.

A.         Local purchase

B.         Interstate purchase

A.      Local Purchase

The purchase of goods or services from a supplier in the same state attracts central tax and state tax.

To record a local purchase transaction

As per our Practical Example No. 1

Purchase from Raj Infotech, 5 CDs of Antivirus Software @ Rs. 800 each, with Input GST rate @ 18%. i.e. Rs.. 720 - [ CGST (9%) Rs.360 and SGST (9%) Rs.360 ]

 1.         Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

Supplier invoice no.: Displays the sales invoice no. of the supplying party.

Date: Displays the date on which the sales invoice was passed by the supplier.

2.          In Party A/c name, select the supplier's ledger or the cash ledger.

3.          Select the Purchase Ledger applicable for local taxable purchases.

4.         Select the required items, and specify the Quantities and Rates.

5.          Select the central and state tax ledgers.

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

As per our Practical Example No. 2

Purchase from Microtek India Ltd. , 10 Monitors @  Rs. 4000 each, with Input GST @ 28% i.e. Rs.11,200 – [ CGST (14%) Rs.5600 and SGST (14%) Rs. 5600. ]

? 

B.      Inter-State Purchase

As per our Practical Example No. 3

Purchase 2 ‘Hp-Laptop’ @ Rs. 45,000 with Input IGST @ 18% i.e. Rs. 16,200

and

2 Mi-Note 4 Mobiles @ Rs. 10,000 each with Input IGST 12% i.e. Rs.2,400 –  in Cash from  Outside State – West Bengal from Registered Shop

 

? 

In the above example…Purchase of Multiple Items GST Rates in one Purchase Bill.

1.         Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

Press F12 :  Make ‘No’ to Use common ledger account for item allocation as follow :

●     Follow the steps used for recording a local purchase transaction, with the following changes:

o     In Party A/c name, select Cash ledger i.e. Cash .

The Supplementary Details should be as below  with Address, State, GST Registration Type , GSTIN/UIN & Type of Dealer :

o     Select the purchase ledger applicable for interstate purchases for each item i.e. Inter-state Purchase @ 18% for Hp-Laptop &  Inter-state Purchase @ 12% for Mi Note 4 Mobiles.

o     Select the integrated tax ledger i.e. Input IGST.

Depending on the location of the supplier, you can record a local or interstate purchase transaction with the applicable GST rates

 

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

Step- 9

Recording GST Sales and Printing Invoices :

Once you activate GST in your company, you can record the sale of goods and services that attract GST using a sales voucher. Ensure that you provide unique voucher numbers for your sales vouchers, and use a new series of voucher numbering.

A.         Local sales

B.         Printed invoice format

C.         Interstate sales

A.      Local Sales

The sale of goods or services to customers in the same state attract central tax and state tax.

To record a Local Sales Transaction

1.    Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

As per our Practical Example No. 4

Sale of 5 Antivirus CDs @ Rs.1500 to Rajib Roy & Sons with output GST 18% i.e. Rs. 1350 – [CGST (9%) Rs. 675 and SGST (9%) Rs.675 ]

? 

2.          In Party A/c name, select the customer ledger or the cash ledger.

3.         Select the sales ledger.

4.         Select the required items, and specify the quantities and rates.

5.         Select the central and state tax ledgers.

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

6.         In the sales invoice, press Alt+P to print the invoice in the required format.

For multiple copies: Press Alt+P and then Alt+C to select the number of copies.

B.      Printed Invoice Format

As per GST guidelines, details such as the applicable taxes and tax rates, and the GSTIN/UIN of the company and the customer will be captured. Depending on your requirements, you can include additional details in your invoice by clicking F12: Configure

 

As per our Practical Example No. 5

Sale of 10 Monitors @ Rs.4500 , to H. Goenka Traders with Output GST @ 28% i.e. Rs. 12600 – [ CGST (14%) Rs. 6300 and SGST (14%) Rs. 6300 ]

The above Local Sales Invoice will be as below :

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

As per our Practical Example No. 6

Sale of 2  ‘Hp-Laptop’ @ Rs 50,000 with Output GST @ 18% i.e. Rs.18,000 [ CGST (9%) Rs.9,000 and SGST (9%) Rs.9,000 ] in Cash within Odish

 

The above Local Sales Invoice will be as below :

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

C.      Inter-State Sales

Sale of goods or services to a customer in another state attract integrated tax.

To record an interstate sale

●          Follow the steps used for recording a local sales transaction. The only difference is that you have to select the integrated tax ledger instead of central tax and state tax.

As per our Practical Example No. 7

Sale of 2  Mi-Note 4 Mobiles Outside State @ Rs. 15,000 each with Output IGST 12% i.e. Rs. 3600  in Cash to a Party in Andhra Pradesh

? 

The above Local Sales Invoice will be as below :

Depending on the location of the party, you can record a local or interstate sales transaction with the applicable GST rates, and print the invoice.

4.    Generate GSTR-1 Return/Reports under Tally.ERP9

GSTR-1 is the monthly GST return to be filed by taxable person registered under GST. GSTR-1 will include the details of all outward supplies made in the given period. In the standard format released by the department, GSTR-1 return form is divided into multiple tables, each table is used for a different type of outward supply. In Tally.ERP 9, GSTR-1 can be viewed in a report format with tax computation details. This report can be changed to TABLE-WISE FORMAT (department format) with the click of a button.

All transactions, whether recorded correctly, incorrectly or inadequately, are captured and categorised in this report. Further, to help you verify the tax details before exporting the returns, the GSTR-1 report in Tally.ERP 9 provides you with options to resolve exceptions in transactions that are not forming part of the returns due to incomplete information or mismatch.

The report also enables you to update the status of each transaction in the return based on the acceptance and reconciliation status of the transaction on GSTN portal using the STATUS RECONCILIATION option.

To view the report

●          Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR–1.

The GSTR-1 report appears as shown:

The different sections of the report are:

Returns Summary: This section displays a snapshot of business operations in the given period.

GSTR-1 Particulars (computation details): This section displays the taxable value and tax amount from outward supplies considered in the returns.

Drill down from any part to display detailed information at the subsequent levels.

F12: Configure

Show break-up of nett values?: Enable this option to display Gross Value, Returns, and Addition/Deduction values in detailed mode of the report. This option is disabled by default.

Show tax types in separate columns?: Enable this option to view all GST tax types in separate columns. This option is enabled by default. When this option is displayed, tax amount is displayed in a single column without the Central Tax, state tax and integrated tax break-up.

 

4.1.  Table-Wise Format (Department Format)

To view the report in table-wise format

●           Click V: Table-wise View in the GSTR-1 report.

By default the table-wise format displays rows related to values for current reporting period. And rows of previous period amendments, if values are available. To view all the amendment rows, enable the option

Show amendment tables with zero values? under F12: Configure.

Given below is the description of different tables.

Table name

Description

5 B2B invoices

Displays the taxable value and tax amount from taxable supplies to a registered person recorded in the reporting period. The transactions recorded with

Nature of transaction as

●     Sales Taxable

●     Interstate Sales Taxable

●     Sales Exempt

●     Interstate Sales Exempt

●     Sales Nil Rated

●     Interstate Sales Nil Rated

Taxability as

●     Taxable

●     Exempt

●     Nil Rated

Registration type as

●     Regular

●     Composite

●     Unknown (with GSTIN)

5A Amendments to B2B Invoices

Displays amendments to details of outward supplies to a registered person of earlier tax periods.

6 B2C(Large) Invoices

Displays taxable value and tax amount from taxable outward supplies to a consumer where place of supply is other than the state where supplier is located (Inter-state supplies) and invoice value is more than Rs 2.5 lakh. The transactions recorded with,

Nature of transaction as

●     Interstate Sales Taxable

●     Interstate Sales Exempt

●     Interstate Sales Nil Rated

Taxability as

●     Taxable

●     Exempt

●     Nil Rated

Registration Type as

●     Unregistered

●     Consumer

●     Unknown (with GSTIN)

6A Amendments to B2C(Large) Invoices

Displays amendments to details of taxable outward supplies to a consumer where place of supply is other than the state where supplier is located (Inter-state supplies) and invoice value is more than Rs 2.5 lakh of earlier tax periods.

7 B2C(Small) Invoices

Displays taxable value and tax amount from taxable outward supplies to consumer (Other than captured in table 6). The transactions recorded with

Nature of transaction as:

·         Interstate Sales Taxable

·          Interstate Sales Exempt

·          Sales Taxable

·          Sales Exempt

·          Sales Nil Rated

·          Interstate Sales Nil Rated

·          Sales to Consumer – Taxable

·          Sales to Consumer – Exempt

Taxability as:

·         Taxable

·         Exempt

·         Nil Rated

 

Registration Type as:

·         Unregistered

·         Consumer

·         Unknown (with GSTIN)

and invoice value of less than 2.5 lakhs are captured in this table.

7A Amendments to B2C(Small) Invoices

Displays amendments to details of taxable value and tax amount from taxable outward supplies to consumer (Other than captured in table 6) of earlier tax periods.

8 Credit/Debit Notes

Displays the taxable value and tax amount from credit and debit notes recorded in the reporting period. The credit and debit note transactions recorded with

Nature of transaction as

●     Interstate Sales Taxable

●     Interstate Sales Exempt

●     Interstate Sales Nil Rated

●     Sales Taxable

●     Sales Exempt

●     Sales Nil Rated

Taxability as

●     Taxable

●     Exempt

●     Nil Rated

Registration type as

●     Regular

●     Composite

●     Unknown (with GSTIN)

8A Amendments to Credit/Debit Notes

Displays amendment to details of credit and debit notes of earlier tax periods.

9 Nil Rated Invoices

Displays the taxable value from nil rated, exempt and non-GST outward supplies. The transactions recorded with,

Nature of transaction as

●     Sales Exempt

●     Interstate Sales Exempt

●      Sales Nil Rated

●     Interstate Nil Rated

Taxability as

●     Taxable

●     Nil Rated

Registration type as

●     Regular

●     Composite

●     Consumer

●     Unregistered

●     Unknown (with GSTIN)

and, Is Non-GST good? option enabled.

10 Exports Invoices

Displays the taxable value and tax amount from supplies exported (including deemed exports) in the reporting period. The transactions recorded with,

Nature of transaction as

●     Exports Taxable

●     Exports - LUT/Bond

●     Exports Exempt

●     Deemed Exports Taxable

●     Deemed Exports Exempt

●     Sales to SEZ - Taxable

●     Sales to SEZ - Exempt

●     Sales to SEZ - LUT/Bond

Taxability as

●     Taxable

●     Exempt

●     Nil Rated

Registration type as

●     Composite

●     Consumer

●     Unregistered

●     Unknown

10A Amendments to Exports Invoices

Displays details of amendments to supplies exported of earlier tax periods.

11 Tax Liability on Advances

Displays tax liability arising on account of time of supply without issuance of invoice in the same period. The tax amount credited in the receipt transactions recorded by using the option Advance Receipt are captured in this table.

11A Amendments to Tax Liability on Advances

Displays details of amendments to tax liability arising on account of time of supply without issuance of invoice in the same period.

12 Setoff of Tax Paid against Advances

Displays tax already paid (on advance receipt/ on account of time of supply) on invoices issued in the current period. Displays the tax amount from sales transactions for which tax liability was created in advance receipts recorded in previous period.

 

4.2.  Returns Summary ( GSTR-1)

This section provides a summary of all transactions recorded in the reporting period. The transactions are further classified based on the presence of GST details in the vouchers and their effect on the returns.

4.2.1.        Total Number Of Vouchers For The Period

Displays the total number of vouchers recorded in the reporting period. Drill down will lead to the Statistics report, which displays the number of vouchers recorded against each voucher type, divided into included, excluded and uncertain based the vouchers participating in the GST returns.

The statistics report on drill down from Total number of vouchers for the period appears as shown below:

4.2.2.        Included In Returns

Displays count of all vouchers that have requisite information to comply with requirements of GST returns. Only these transactions will be exported as part of returns. Drill down from this row to view the Summary of Included Vouchers report, with the list of voucher-types with voucher count.

4.2.3.        Not Relevant For Returns

Displays the count of all vouchers which are not part of returns, as GST details are not provided in these vouchers. These vouchers will have no implication on returns. Drill down from this row to view Summary of Excluded Vouchers report, with transaction type-wise voucher count. The Summary of Excluded Vouchers report appears as shown:

Transaction Types

Excluded by User: Displays the count of vouchers manually excluded by user from list of included or uncertain transactions. Drill down will lead to list of all the excluded vouchers. An excluded voucher can be included by clicking I: Include Vouchers. Based on information in the voucher it will move to either included or uncertain.

Contra Vouchers: Displays the count of contra entries which involve only bank and cash ledgers. Drill down to view all the contra vouchers.

Order Vouchers: Displays the count of sales order, purchase order, job work in order and job work out order vouchers. Drill down to view the all order vouchers.

Inventory Vouchers: Displays the count of receipt note, stock journal, delivery note, material in, material out, rejections in, rejections out and physical stock vouchers as they are purely inventory in nature and do not attract GST . Drill down to view all inventory vouchers.

Payroll Vouchers: Displays the count of transactions recorded using payroll and attendance vouchers. GST does not apply to these transactions. Drill down to view all the payroll vouchers.

No GST Implications: Displays the count of receipts, payments, and journal vouchers that do not have any GST implication. Drill down to view all the vouchers.

Other voucher: Displays the count of memorandum and reversing journal vouchers. Drill down to view all memorandum and reversing journal vouchers.

Non GSTR-1 Transactions: Displays the transactions which are part of other returns, for example: GSTR – 2, and hence will not have any implication on GSTR – 1. Drill down to view all the GSTR-2 related purchase transactions.

All the transaction types are not displayed by default. Based on the voucher type used and the exclusions done by user, the relevant categories appear with the voucher count.

4.2.4.        Incomplete/Mismatch In Information (To Be Resolved)

Vouchers with incomplete/mismatch in information list includes voucher that contain GST details but are not included in the count of Included in returns and Not relevant for returns due to incomplete information or mismatch.

 

You can correct exceptions in the vouchers before exporting GST returns. The Vouchers with incomplete/mismatch in information report for GSTR - 1 appears as shown below:

The exceptions are listed in the order of priority, based on the importance of the information for generating returns. Hence, a voucher with multiple exceptions is listed in the exception type higher up the order. Once that exception is resolved, the voucher will move down to the next exception type. Such vouchers with multiple exceptions continue to be listed as exceptions until all incomplete/mismatch information are resolved. This will ensure that all exceptions are resolved before filing the returns.

However, vouchers with only one exception are moved to Included in returns list after that exception is resolved.

 

4.2.4.1.     No. Of Voucher With Incomplete / Mismatch In Information

Displays the count of total vouchers with exceptions. Drill down from this row to view all the vouchers with exceptions, number of exceptions in each voucher, and type of exception. All exceptions can be resolved from here without having to open different exception categories.

To resolve all exceptions without having to go from one exception type to another

1.         Select No. of voucher with incomplete/mismatch in information.

2.         Press Enter to display Exception Resolution screen with the list of vouchers, number of exceptions in each voucher, and exception types. The Exception Resolution screen appears as shown below:

3.         Select any transaction and press Enter to display the Voucher Details Alteration screen which is divided into multiple sections, one for each exception in the voucher, as shown below:

4.    Select or enter required information for the first exception type. Further, you can click F5: Recompute or A: Accept as is to recompute or accept the details, respectively.

5.    Press Enter to navigate to next exception type.

6.    Resolve the exceptions by providing details or using the buttons provided.

7.    Press Enter after all exceptions in the voucher are resolved to view the next voucher with respective exceptions.

8.    Continue resolving the exceptions voucher by voucher, or press Esc to return to Exception Resolution screen.

Note: Click X: Exclude Vouchers in the Exception Resolution screen to exclude the voucher from forms and annexures.

 

4.2.4.2.     Country , State and Dealer Type not Specified

Displays the count of transactions where,

●          Country/state is not selected in the party ledger master,

●          State selected in transaction and party ledger are different, or

●          Nature of transaction is not derived.

To resolve this exception

1.         Select the exception Country, state and dealer type not specified.

2.         Press Enter. All the transactions of the exception type are displayed. The Exception Resolution screen appears.

3.         Select the state, specify the GSTIN and select dealer type for each transaction.

4.    Press Ctrl+A to accept.

Note:   Click X: Exclude Vouchers to exclude the voucher from forms and annexures.

 

4.2.4.3.     Tax Rate / Tax Type not Specified

Displays the count of transactions for which the rate or tax type is not selected in the item/ledger master.

To resolve this exception

1.         Select the exception Tax rate/tax type not specified.

2.         Press Enter. All the transactions of the exception type are displayed. The Exception Resolution screen appears as shown below:

3.          Select the Nature of transaction, if not provided.

4.          Enter Rate, as required for each transaction.

5.          Press Enter to save.

Note:   Click X: Exclude Vouchers to exclude the voucher from forms and annexures.

4.2.4.4.     Nature Of Transaction, Taxable Value, Rate Of Tax Modified In Voucher

Displays count of transactions in which the Nature of transaction, taxable value or rate of tax defined in the ledger master has been changed in the transaction.

To resolve this exception

1.         Select the exception Nature of transaction, taxable value, rate of tax modified in voucher.

2.          Press Enter. All the transactions of the exception type are displayed, as shown below:

3.          Select the required voucher.

4.          Click R: Resolve to select Nature of transaction and enter other details manually, or click A: Accept as is. A message is displayed as shown below:

5.          Press Enter to accept.

6.          Similarly, accept the required vouchers.

7.          Press Ctrl+A to accept.

4.2.4.5.     Incorrect Tax Type Selected In Tax Ledge

Displays count of transactions in which type of duty is invalid.

To resolve this exception

1.         Select the exception Incorrect tax type selected in tax ledger.

2.         Press Enter. All the transactions of the exception type are displayed, as shown below:

3.          Select the tax type for each transaction.

4.          Press Enter to save.

4.2.4.6.     Mismatch Due To Tax Amount Modified In Voucher

Displays the count of transactions in which difference is found between the calculated and entered tax amount. The mismatch due to modified value can be resolved by following one of the options.

A.      Recompute

To resolve this exception

1.         Select the exception Mismatch due to tax amount modified in voucher.

2.         Press Enter. All the transactions of the exception type are displayed.

3.         Navigate to required transaction and press Enter.

4.         Click F5: Recompute to recalculate the tax amount.

5.          Press Ctrl+A to accept.

B.      Resolve

To resolve this exception

1.           Select the exception Mismatch due to tax amount modified in voucher.

2.          Press Enter. All the transactions of the exception type are displayed.

3.          Select the required transaction.

4.          Click R: Resolve, and enter the tax value in As per transaction column of the voucher.

The Exception Resolution screen appears as shown below:

5.          Press Ctrl+A to accept.

C.      Accept as is

To resolve this exception

1.         Select the exception Mismatch due to tax amount modified in voucher.

2.         Press Enter. All the transactions of the particular exception are displayed.  

3.         Select the required voucher and click A: Accept as is. A message is displayed as shown below:

4.          Press Enter to accept.

5.          Similarly, accept the required vouchers.

6.           Press Ctrl+A to accept.

4.2.4.6.1.  Voucher With Incomplete / Incorrect Adjustment Details (SGTR-2)

Displays the count of journal transactions in which Nature of adjustment is not selected.

To resolve this exception

1.         Select the exception Voucher with incomplete/incorrect adjustment details.

2.         Press Enter. All transactions are displayed of a particular exception are listed, as shown  below:

3.          Select the Nature of adjustment and Additional details for each voucher.

4.          Press Ctrl+A to accept.

4.2.4.7.     Information Required For Generating Table-Wise Details Not Provided

Displays the count of transactions excluded from table-wise format of GSTR-1 due to incomplete information. The button Exception Types is provided to resolve all party ledger level or voucher level corrections from a single screen.

To resolve all exceptions without having to go from one exception type to another

1.         Select Information required for generating annexure not provided.

2.         Press Enter to display Exception Resolution screen with list of vouchers with mismatch / incomplete information.

3.     Select any voucher and press Enter to display the Table-wise exceptions(s) screen, as shown below:

4.         Enter the missing information or update the incorrect details, and press Enter to return to the Exception Resolution screen.

5.          Select the next voucher to update the details required for annexures and continue

4.2.4.8.     Exception Types

Using this option you can resolve exceptions from a common screen by grouping all table-wise related exceptions into two buckets Party Ledger level Corrections and Configuration Level Corrections. Exceptions in each group can be resolved from a single screen without having to move voucher by voucher.

To resolve all party ledger level exceptions

1.         Select Information required for generating table-wise details not provided.

2.         Press Enter to display Exception Resolution screen with list of vouchers with mismatch/incomplete information.

3.         Press Ctrl+E.

4.         Select Party Ledger Level Corrections in the Select Exception Resolution Type screen.

5.         Select the State Name, State Code and enter party GTIN number for the listed parties in the Party Ledger Level correction screen, as shown below:

6.          Press Ctrl+A to accept.

To resolve all configuration level exceptions

1.          Select Information required for generating table-wise not provided.

2.          Press Enter to display Exception Resolution screen with list of vouchers with mismatch/incomplete information.

3.          Press Ctrl+E.

4.          Select Configuration Level Corrections in the Select Exception Resolution Type screen.

5.          Enter HSN/SAC code for the listed vouchers.

6.          Press Ctrl+A to accept.

Drill-down from any row and resolve the respective exceptions to include the vouchers in return.

 

4.2.4.8.1.   Item Exceptions

Click I: Item Exceptions to alter view of Vouchers with incomplete / mismatch in information report to display vouchers with incomplete / mismatch of information in item master. The vouchers with exceptions are displayed against different exception types in 2 columns:

Total Masters

Drill down from this column to view information missing/mismatch in item at master level. You can provide the required details at stock group level to update all items in the group or at individual item level. By providing required information at item master level, all voucher level exceptions resulting from that item are resolved.

To update the information and resolve exception at master level

1.         Click I: Item Exceptions.

2.          Navigate to required exception type and press Enter from Total Masters column to display Multi Stock Alteration screen.

3.          Select the Classification.

The Multi Stock Alteration screen appears as shown below:

4.          Enter HSN/SAC, and tax rate.

5.          Select Taxability and enter the Effective date.

6.          Press Ctrl+A to accept.

Total Vouchers

Drill down from this column to view information missing/mismatch in the items at voucher level. You can provide the required details for each transaction.

To update the information and resolve voucher exception at voucher level

1.         Click I: Item Exceptions.

2.          Navigate to required exception type and press Enter from Total Masters column to display Exception Resolution screen, as shown below:

3.        Select Nature of transaction.

4.        Enter Rate.

5.        Press Ctrl+A to accept.

4.2.4.8.2.   Ledger Exceptions

Click L: Ledger Exceptions to view of Vouchers with incomplete/mismatch in information report displays vouchers with missing/mismatch of information in ledger master. The vouchers with exceptions are displayed against different exception types in 2 columns:

Total Masters

Drill down from this column to view information missing/mismatch at ledger master level. You can provide the required details at ledger group level to update all ledgers in the group or at individual ledger level. By providing required information at leger master level, all voucher level exceptions resulting from that ledger are resolved.

To update the information and resolve exception at master level

1.         Click L: Ledger Exceptions.

2.          Navigate to required exception type and press Enter from Total Masters column to display Multi Ledger alteration screen, as shown below:

3.          Enter HSN/SAC, and tax rate.

4.          Select Taxability and enter the Effective date.

5.          Press Ctrl+A to accept.

Total Vouchers

Drill down from this column to view information missing/mismatch in the ledger at voucher level. You can provide the required details for each transaction.

To update the information and resolve voucher exception at voucher level

1.         Click L: Ledger Exceptions.
 

4.3.  GSTR-1 Particulars ( Computation Details)

This section displays the transaction values included in the returns along with the amount of adjustments, and GST payable or refundable. The taxable amount, and tax amount under each GST tax type are displayed under respective columns for the specific period. Drill-down reports are provided for all sales and GST adjustments up to the transaction level.

4.3.1.        Outward Supplies

Total outward supplies (local and interstate), which include taxable value, and the corresponding tax amount are displayed here. The total local and interstate sales are divided into Taxable and Exempted. To view all the sales transactions,

1.         Click F1: Detailed to display the report in detailed mode.

2.         Select any of the rows displayed in italics, under Local Sales or Interstate Sales.

3.         Press Enter to display the Voucher Register screen, as shown below:
You can view this report ledger wise or commodity wise by clicking L: Ledger-wise or S: Stock item-wise, and A: Party-wise respectively.
 

5.  Status Reconciliation (GSTR-1)

GST compliance is complete if information of outward and inward supplies in books reconcile with the data on GST portal. Due to involvement of counter-party, multiple systems, and users, discrepancies creep in frequently making reconciliation a critical step.

 The filing process involves

●          Supplier uploading details of outward supplies in GSTR-1.

●          Buyer receiving the supply details in his GSTR-2A.

●          Buyer approving/rejecting the supply details and filing GSTR-2.

●          Supplier receiving the modified supply details in GSTR-1A. Supplier approving or disapproving the updated supply details.

●          Generating GSTR-3 the supplier with payment of taxes when buyer and seller approve all the supply details.

All the approval, rejection, modification and confirmation is done on the GST portal. The supplier or the buyer has to login to the GST portal to check the status of each voucher. The GSTR-1 report in Tally.ERP 9 has the status reconciliation feature that enables you to mark the status of each transaction based on the online status. This will allow you to track the status of all the transactions uploaded without having to login to the portal.

To view Status Reconciliation report

1.         Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR – 1.

2.         Click U: Status Reconciliation. The Status Reconciliation screen appears as shown below:

Activity Status: Displays the columns for different status of vouchers.

Count: Displays the total count of vouchers under the particular table for the reporting period.

To Be Uploaded: Displays the number of vouchers yet to be exported. The count vouchers that are not yet exported to GSTR-1 return file are displayed in this column.

Uploaded: Displays the number of vouchers exported. This column is automatically updated when a voucher is exported to GSTR-1 return file.

Rejected by GST: Displays the count of vouchers marked as Rejected by GST. You can mark the voucher status as rejected when GST rejects the voucher for reasons such as, duplicate invoice, reference of original transaction is not found in case of debit/credit note, GSTIN of any user being suspended, and so on.

Accepted: Displays the count of vouchers marked as Accepted. You can mark the status as accepted when input tax claim made by the buyer in the GSTR-1A.

Rejected: Displays the count of vouchers marked as Rejected. You can mark the status as rejected when the buyer rejects the voucher details as displayed in the GSTR-1A.

Reconciliation Status: Displays the columns for reconciliation status of vouchers.

Not Reconciled: Displays the count of vouchers marked as Not Reconciled. You can mark the status as Not Reconciled when the details in the online portal do not match with your books.

Reconciled: Displays the count of vouchers marked as Reconciled. You can mark the status as Reconciled when the details in the online portal match with your books.

5.1.  Set Status

Drill down from any table to view the voucher register with list of vouchers and change the status of the voucher.

 

The voucher register displayed on drill down from a table in Status Reconciliation screen appears as shown below:

To set the status of a voucher

1.         Select a voucher or multiple vouchers using Spacebar.

2.         Click S: Set Status

3.         Select the Activity status and Reconciliation status of the voucher based on the details in the GST portal and press Enter.

The status change is displayed in the Voucher Register as shown:

4.         Press Escape (Esc) to return to the Status Reconciliation screen. The voucher count in columns is changed based on the status updates.

5.2.  Status-wise View    

You can view the status  reconciliation in the status-wise view.

To change to status-wise view

1.          Click V: Status-Wise View in the Status Reconciliation screen.

F12: Configure

Show uncertain transactions ? : Enable this option to view the number vouchers that are not included in the returns due to incomplete information or mismatch. This voucher count is displayed at the bottom of the Status Reconciliation screen.

6.    Challan Reconciliation Report for GST Payments

All the tax payment vouchers recorded for paying GST and other liabilities are displayed in Challan Reconciliation report. For each payment, the bank and challan details can be provided from this report.

To view the Challan Reconciliation report

     Go to Gateway of Tally > Display > Statutory Reports > GST > Challan Reconciliation.

To set the payment details for each transaction

1.           Click S: Set Details.

2.                    Specify the From and To dates.

3.           Select the Mode of payment.

4.          Enter the details and press Ctrl+A to accept.

The description of each column of Challan Reconciliation report is given below:

Column Names

Description

Date

Displays the payment voucher date.

Particulars

Displays the bank or cash ledger selected in payment voucher.

Vch Type

Displays the name of the voucher type as Payment.

Vch No.

Displays the payment voucher number.

Type of Tax Payment

Displays GST (which is selected as the Tax Type in the Stat Payment Details screen of payment voucher).

Payment Period

Displays the From and To dates entered in Stat Payment Details screen of Challan Reconciliation report.

Type of Payment

Displays the payment type based as Interest, Late Fee, Others or Penalty, selected for the first ledger in the payment voucher.

Mode of payment

Displays the Mode of payment selected in the payment voucher or in the Challan Reconciliation report.

Bank Name

Displays the Bank Name entered in the payment voucher or in the Challan Reconciliation report.

Common Portal Identification Number (CPIN)

Displays the Common Portal Identification Number (CPIN) entered in the payment voucher or in the Challan Reconciliation report.

Challan Identification Number (CIN)

Displays the Challan Identification Number (CIN) entered in the payment voucher or in the Challan Reconciliation report.

BRN/UTR

Displays the BRN/UTR entered in the payment voucher or in the Challan Reconciliation report.

Instrument Number

Displays the Instrument number (if the mode of payment is selected as cheque or demand draft) entered in the payment voucher or in the Challan Reconciliation report.

Instrument Date

Displays the Instrument date (if the mode of payment is selected as cheque or demand draft) entered in the payment voucher or in the Challan Reconciliation report.

Payment Date

Displays the Payment date entered in the payment voucher or in the Challan Reconciliation report.

 

7.    Creating Income and Expenses Ledger in GST

Supply of goods or rendering of services may involve additional expenses, which can either form part of stock items or service value, or can be charged separately. When such an expense is recovered from customers, it becomes an income.

While accounting for expenses and incomes, the ledgers have to be grouped under Direct ExpensesIndirect ExpensesDirect Incomes or Indirect Incomes.

To create an expense or income ledger

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.    In the option Appropriate to select,

o     Goods, if the expense or income value has to be included in the stock item cost.

o     Services, if the expense or income value has to be included in the service value.  

o     Both, if the expense or income value has to be included in stock item cost or service value.

3.    Select the Method of Calculation based on the selection made for the option Appropriate to.

If the option Appropriate to is set to Goods, select the Method of Calculation as:

o     Based on Quantity, if the expense or income amount has to be distributed based on the quantity entered for each stock item in the invoice.

o     Based on Value, if the expense or income amount has to be distributed based on the value of each stock item or service selected in the invoice.
 

8. Reverse Charge on Purchase from Unregistered Dealer (URD) | Reverse Charge in GST in Tally.

What is it?

The GST has to be typically paid by the supplier of goods and services. But in some cases, the liability to pay the tax falls on the buyer. This reverse charge is, however, applicable only under certain circumstances. The most common instance is when a business buys goods or services from a supplier who is not registered to pay GST.

Let’s assume that Business A that is GST-compliant buys goods worth Rs. 100 from Business B that is not registered to pay GST. If the GST on the goods supplied is Rs. 5, then Business A, instead of Business B, will have to pay Rs. 5 to the Government. Business A can, however, claim input tax credit of the GST payment of Rs. 5, when it sells the goods to its client.

Step – 1

Create Supplier Ledger i.e. Supplier (L) URD – Local

To create a supplier ledger i.e. Supplier (L) – URD - Local

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Enter the Name of the supplier's ledger i.e. Supplier (A) URD – Local .

3.         Select Sundry Creditors from the List of Groups in the Under field.

4.         Set the option Inventory values are affected? to No,.

5.         Under Mailing Details, Don’’t  forget to mention the State of your Supplier [ Select your Own State for Local Supplier and Outside State for Outside State Supplier.

5.         Enable the option Set/Alter GST Details? to open the GST Details screen.

o           Select Unregistered  from the List of registration Types.

The GST Details screen appears as shown below:

o     Press Ctrl+A to accept.

The Ledger Creation screen appears as shown below:
8.    Press Enter to save.

Step – 2

Similarly Create Supplier Ledger of Outside State i.e. Supplier (O) URD – Interstate

Step – 3

Create  Local Purchase Ledger i.e. “Purchase from URD-Local

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Enter the Name of the Purchase ledger i.e. Purchase from URD-Local

3.         Select  Purchase Account  from the List of Groups in the Under field.

4.         Set the option Inventory values are affected? to Yes ,.

5.         Is GST Applicable - Applicable.

6.         Set/alter GST Details - Yes, specify the details in the GST Details screen as below , and Save.

7.         Set the option Is reverse charge applicable ? to Yes

[ If this option is not visible, Press F12 : Configure and set the option ‘ Enable reverse charge calculation’ to Yes ]

8.         Integrated Tax Rate is 18% for this type of Purchase from URD –Local Ledger

To view the history of tax rate changes, press Alt + L.

9.         Select the Type of supply. By default the type of supply is set to Goods.

10.       Press Ctrl + A to save

Step – 4

Similarly.. Create  Outside Purchase Ledger i.e. “Purchase from URD-Interstate

1.         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Is GST Applicable - Applicable.

3.         Set/alter GST Details - Yes, specify the details in the GST Details screen as below , and Save

4.         Set the option Is reverse charge applicable ? to Yes

5.         Integrated Tax Rate is 18% for this type of Purchase from URD –Interstate Ledger

6.         Select the Type of supply. By default the type of supply is set to Goods.
7.         Press Ctrl + A to save.

Step – 5

Recording an Invoice for Purchase from Unregistered Dealer-Local

To record an invoice for purchase from unregistered dealer

1.    Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

2.    Enter the Supplier invoice no. and Date ( Should be on / after 01-07-2017).

3.    Select the party ledger in the field Party's A/c Name : Suppliers (L)-URD-Local.

Remember the State should be Local State with Type if Dealer : Unregistered as image below which has been assigned already at the time creation of the Supplier.

4.    Select the Purchase Ledger : Purchase from URD - Local.

5.    Select the stock item i.e. Vacuum Cleaner,  Enter the Quantity and Rate. The purchase invoice appears as shown below:

At the time of Item creation, Set GST Applicable : Applicable as below ..
 

6.         Press Enter to save.

Note : Don’t charge any GST in this Purchase Voucher due to Purchase from URD who has not charges any GST in their Bill.

7.         As per the GST Law Reverse Charge is applicable in this Purchase Bill, that means we have pay the Tax Rs.1800 i.e. CGST-Rs.900 & SGST-Rs.900 ( 18% on Rs.10,000) on this Purchase Value due to purchase from Unregistered Dealer. On the Front of the Invoice No Tax is shown.

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

Step – 6

Similarly, You can Record an Invoice for Purchase from Unregistered Dealer-Interstate (Outside State)
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

Under above transaction IGST @ 18% of Rs. 4500 has charged which increase our Tax Liability

 

Step – 7

View Total Tax Liability under Reverse Charge GST in GSTR2

All the Tax liability created and Due  under Reverse Charges towards purchase from URD, will be  payable by the Recipient of the Purchases by the Registered Dealer who received Stocks.

 

All the Tax Liability under Reverse Charge are shown in GSTR2 Report.

 

1.         Go to Gateway of Tally > Display > Statutory Report > GST > GSTR2

 

2.         Click  V : Default View (if any) > Press F1 : Details

So the Total Tax Liability of Rs. 6,300 under Reverse Charge Supplies are :

i.          IGST  - Rs. 4500 ( i.e. 18% on Rs.25000 purchase value)

ii.         CGST – Rs. 900 ( i.e. 9% on Rs. 10,000 purchase value)

iii.        SGST – Rs. 900 ( i.e. 9% on Rs. 10,000 purchase value)

Step – 8

Recording a Journal Voucher Transaction for Increase in Tax Liability on Purchase from Unregistered Dealers

When we purchase from Unregistered Dealer, first we have to raise the Tax Liability in out Book, then pay to the Tax Department. For this purpose we have to make entry in Journal Voucher to raise this Tax Liability under Reverse Charge.

To account for tax liability on purchase from unregistered dealers

1.                   Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

Alternatively…. Gateway of Tally > Display > Statutory Report > GST > GSTR2 > ( under Default Report)

2.                    Click J: Stat Adjustment. In the Stat Adjustment Details screen,

o                    Select the option GST in the Type of duty/tax field.

o                    Select the option Increase of Tax Liability in the Nature of adjustment field.

o          Select the option Purchase under Reverse Charge in the Additional Details field.

o                    Press Enter to save and return to the voucher screen.

3.         Debit the ledger Tax Paid on Reverse Charge created under the group Current Asset which paid in advance and enter the amount of Rs. 6,300

4.         Credit the GST ledger with Amount as shown below.

The journal voucher appears as shown below:

5.    Press Enter to save.

 

9.  GST On Advance Payment Received From Customer In Tally | GST In Tally ERP 9

>>   The advance amount received from customers can be recorded in a receipt voucher. The receipt voucher that is marked as an advance receipt, can be printed with the required GST details.

>>   For any advance received for goods or services, if the corresponding sales invoice is not raised in the same month, the dealer who has received the advance has to pay the GST.

>>   When an invoice is raised against an advance received in a different tax period, the voucher recorded for advance amount received has to be tracked against it.

9.1.    Advance Receipt exclusive of tax adjusted against Sales Invoice in the same month

9.1.1.          To record a receipt voucher for advance receipt from customer exclusive of tax

1.                    Go to Gateway of Tally > Accounting Vouchers > F6: Receipt.

2.    Click V: Advance Receipt to mark the voucher for advance receipt. The values entered in this voucher are captured inGSTR-1 report.

Note:  Receipt vouchers recorded without clicking V: Advance Receipt will not have GST implications, and will form part of the Summary of Excluded Vouchers.

 

3.    In the Advance Receipt Details screen, select the Stock Item (goods enabled for GST) or Ledger Name (services enabled for GST). Based on the GST rates defined in the stock item or ledger, the breakup of GST rate for Central TaxState Taxand Cess is displayed.

4.    Enter the advance received in the Amount column. You can adjust this against the sales invoice partially/fully, based on the sale value. At the end of the month, depending on the balance amount of advance available, you can record a journal voucher to raise the liability.

Note:  It is recommended to enter the entire advance amount in the Amount column so that the entire advance can be used to setoff against the sales invoice raised in the same month or different month.

Based on the amount entered, the breakup of GST amount gets auto calculated for Central TaxState Tax and Cess, if applicable. The Advance Receipt Details screen appears as shown below:

Note: The central and state tax rates shown in the above screen, are captured in the GSTR-1 report.

5.         Press Ctrl+A to accept the Advance Receipt Details screen and return to receipt voucher.

6.         Select the type of reference as Advance and enter the reference details in the Bill-wise Details screen.

7.         If the amount is received through bank, select the Transaction Type and enter the required details in the Bank Allocations screen.

8.         Press Enter to save.

9.         Click P: Print and enable the option Print Advance Receipt to Yes to print the invoice.

The printed payment voucher with the GST details appears as shown below:

The GSTR-1 report displays the tax liability on advance receipts as shown below:

The advance receipt voucher count appears in the Included in returns row.

9.1.2.          Sales Invoice Linked to an Advance Receipt Voucher in the same month as above.

When the sales invoice is recorded in the same month, the receipt voucher has to be linked to it by selecting the Type of Refas Agst Ref in the Bill-wise Details screen of sales invoice.

Don’t forget to Set ‘No’ to  “Use defaults for bill allocations” under F12 : Configure in Sales Invoice

As the sales invoice is recorded in the same month, the GSTR-1 report displays only the sales invoice as shown below:

The advance receipt voucher appears as part of transactions Not relevant for returns and is ategorized as No GST Implications in the Summary of Excluded Vouchers report.

 

9.2.  Advance Received and Sales Invoice recorded in different months.

9.2.1.          Advance receipt voucher

Record a receipt voucher in the month of July as shown below:

9.2.2.          Journal voucher to raise the liability

At the end of the month, record a journal voucher to raise the liability to pay tax as shown below:

The journal voucher that is recorded does not have any impact on the GSTR-1 report.

 

9.2.3.          Sales Invoice against Advance Receipt of Previous Month

Record a sales invoice in the month of August as shown below:

 

9.3.          Journal Voucher to Reverse the Tax Liability raised in Journal Voucher for the Advance Received of the Previous Month.

After recording the sales invoice, you need to reverse:

To reverse the tax liability, record a journal voucher by debiting the GST ledgers and crediting the expense ledger or ledger grouped under Current Assets, as shown below:

 

9.3.  Reversal of GST on account of Cancellation of Advance Received.

9.3.1.          To exclude a transaction

1.         Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1.

2.         Select Included in returns and press Enter.

3.         Select Advance Receipt and press Enter.

4.         Select the receipt voucher and click X: Exclude Vouchers.

5.    Click Yes for the message Do you want to exclude this voucher?.

 

9.3.2. To reverse the liability on cancellation of a transaction

1.          Click J: Stat Adjustment in GSTR-1 report or from the Accounting Vouchers > F7: Journal.

2.          Select the options as shown below:

3.    Debit the GST ledgers and credit the ledger grouped under Current Assets as shown below:

 

10. Recording An Advance Payment To Supplier Under GST

You can record advance payments made to registered or unregistered dealers in a payment voucher.

To record a payment voucher for advance payment

1.         Go to Gateway of Tally > Accounting Vouchers > F5: Payment

2.         Click V: Reverse Chrg. Adv. To mark the voucher for advance payment. The values entered in this voucher are captured in GSTR-2 report.

Note:  Payment vouchers recorded without clicking V: Reverse Chrg. Adv. Will not have GST implications, and will form part of the Summary of Excluded Vouchers.

3.         Account: Select the bank from which the payment will be made.

4.         Select the party ledger and enter the details in the Advance Payment Details screen.

Note:  To categorise and display the stock items or ledgers attracting reverse charge in the Advance Payment Detailsscreen, set the option Enable reverse charge calculation? To Yes in the Configuration screen of GST Details screen (displayed on enabling the option Set/alter GST details? In the stock item or ledger master).

5.         Press Ctrl+A to save the Advance Payment Details screen.

6.         Select the type of reference as Advance and enter the reference details in the Bill-wise Details screen.

7.         Enter the details in the Bank Allocations screen.

8.         Press Enter to save.

 

11. Transferring Tax Credits of VAT, Excise, and Service Tax to GST in Tally.ERP9


You can record a journal voucher to transfer the closing balance of tax credits of VAT, additional tax, cess, surcharge, CENVAT, service tax, krishi kalyan cess, and special excise duty/additional excise duty as opening balance under GST.

As GST is a new tax structure, the tax credits of previous tax regime will not be automatically carried forward to the GST account. Based on the date from which you want to maintain the books of accounts under GST, you need to carry forward the tax credit to state/central tax by recording a journal voucher.

Recording a journal voucher

The tax credits of service tax, krishi kalyan cess and CENVAT has to be transferred to the central tax ledger. The tax credit of VAT, additional tax, surcharge and cess has to be transferred to the state tax ledger. Hence, two separate journal vouchers have to be recorded to account for the opening balance of central and state taxes.

To record a journal voucher

1.         Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

Note:  You can also create a journal voucher from Gateway of Tally > Display > Statutory Reports > GST > GSTR-1or GSTR-2.

2.         Click J: Stat Adjustment.

3.         In the Stat Adjustment Details screen, select the options as shown below:

4.          Nature of adjustment - Opening Balance.

5.          Transfer the tax credit of service tax and CENVAT to central tax ledger as shown below:

6.         Transfer the tax credit of VAT to state tax ledger as shown below:

Note:  Along with the VAT ledger, the cess/surcharge/additional tax ledger can be selected based on the state for which the VAT transactions were recorded prior to implementation of GST.

Entering the tax credit as ledger opening balance for a new user or new business starting from 1st July 2017

You can enter the balance of tax credit as the opening balance in central tax and state tax ledgers, when your books beginning date is on 1st July 2017. However, it is recommended to record a journal voucher as the tax credit can be transferred on or after 1st July 2017. Enter the closing balance of:

●          VAT or VAT with surcharge/cess/additional tax as the opening balance (debit balance) for state tax ledger.

●          CENVAT, service tax and krishi kalyan cess as the opening balance (debit balance) for central tax ledger.

The opening balance entered for central tax and state tax/UT tax in ledger master or journal voucher is a book entry and will not reflect in the reports.

 
 

12. Recording Sales of Composite Supply under GST
(Expenses Apportioning) in Tally.ERP9


Composite supply means a supply is comprising two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply. The items cannot be supplied separately.

Illustration in Revised GST law : Where goods are packed, and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply. Insurance, transport cannot be done separately if there are no goods to supply. Thus, the supply of goods is the principal supply

You can record the sales of a composite supply using a sales invoice. The rate of tax applicable on the principal supply will be considered as the rate of tax for the composite supply.

To create a service ledger

1.                   Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2.         Is GST Applicable? - Not Applicable. The option Include in assessable value calculation for appears.

3.         Include in assessable value calculation for - GST.

o          Appropriate to Goods, as the principal supply is considered as goods in this example.

4.         Press Ctrl+A to accept. 

To record the sales of composite supply with goods as principal item

1.         Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

2.         Select the service ledger (in this example, the ledger applicable for transportation charges).

3.         Select the applicable tax ledgers (central and state/union territory taxes for local supply, integrated tax for interstate supply).

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.
 

13. ‘Nil-Rated Sales’ on GST in Tally.ERP 9


The sales of Nil-Rated goods to a local or interstate customer does not attract GST, and can be recorded using a sales voucher. For goods or services classified as Nil Rated (0%), the option Nil Rated has to be selected as the Taxability in the GST Details screen of the item or group master.

Step-1

Create a Sale Ledger : Sales Nil-Rated ( as below )
 

     Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

     Select the applicable Sales ledger. For example, Sales Nil-Rated.

Depending on the location of the party, you can record a local or interstate nil-rated sales transaction.

 

14. ‘‘Exempt Sales’ on GST in Tally.ERP9


 

The local or interstate sale of goods exempted from GST can be recorded using a sales voucher. For goods or services that are exempted from tax under GST, the option Exempt has to be selected as Taxability in the GST Details screen of the item or group master.

Step-1

Create a Sale Ledger : Sales Exempt ( as below )

          Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

          Select the applicable Sales ledger.
 
15. FAQ on GST in Tally.ERP9

This topic lists the important FAQ on GST.

1.   Is it required to print the date and time of removal of goods for GST invoices?

No. It is not mandatory to print the date and time of the removal of goods in the GST invoices.

2.   How do we configure GST for composite dealer because Registration type is set as Regular by default in Tally.ERP 9?

Tally.ERP 9 Release 6 currently does not provide support for composite dealer type.

3.   Why is the HSN code provided for excise not getting copied in Tax Rate Setup screen of the GST menu for the said item?

The HSN code under GST needs to be furnished based on the turnover limit of the dealer during the previous financial year. Therefore, Tally.ERP 9 does not forcefully copy the HSN code on activating GST for your existing data.

4.   How do I pass multiple tax rates for multiple stock items in a single invoice?

In a single invoice, select the stock items attracting different GST rates, and then select the tax ledgers. Press Alt+A to view the tax calculations for each of the stock items selected in the invoice. Refer to Recording GST Sales and Printing Invoices for more information.

5.   Why are CGST and SGST not getting calculated in my invoice?

     Ensure that the date of your transaction is on or after 1 July 2017.

     Select the tax ledgers individually while recording a transaction. Alternatively, create a voucher class to automate the calculation of the GST rates. Refer to Using Voucher Class for Auto Calculating GST in Vouchers for more information.

6.   In case of reverse charge transactions with unregistered dealers, we need to create self-invoices. How can we generate such invoices in Tally?

Create a voucher type with a separate series of voucher numbering and generate the purchase invoice for tracking reverse charge to unregistered dealers. Print the purchase bill as self-invoices by enabling Print GST Analysis of Items? under F12: Configure.

7.   How to generate E-Way bill from Tally and also entered Transport details in Sales Invoice / Delivery Note?

CBEC is yet to notify alternatives for E-Way bill. Since it is not a legal requirement, Tally.ERP 9 does not support this functionality.

8.   How to enter HSN code in multiple companies each having the same stock items?

You have to provide HSN code in each company individually, in one of the following ways:

o     Enter the HSN code in the GST Details screen at the company level.

o     Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup, and enter the HSN code in the GST Rate Setup screen.

9.   The Sales Invoice format changed after upgrading and activating GST. Why?

Tally.ERP 9 Release 6.0 onwards, the invoice formats have been enhanced for GST. The invoice formats currently supported are Tax invoiceBill of Supply, and Advanced Receipts.

10.  Can I create GST e-Cash, e-Credit, and e-Liability masters in Tally.ERP 9?

You can create ledgers named as e-Cash, e-Credit, and e-Liability in Tally ERP 9. You can maintain these ledgers separately for GST.

11.  I have a multiple-location customer with different GSTINs. Do I need to maintain multiple ledgers or can I create multiple addresses with respect to their GST in one ledger?

You can create multiple addresses for one customer in Tally.ERP 9, and update all the GSTINs of that customer along with the corresponding address.

12.  If our company has multiple GSTINs, do we need to have one company with multiple godowns, or should we create multiple companies in Tally.ERP 9?

You can have only one GSTIN per company. If you have multiple GSTINs, you need to create multiple companies in Tally.ERP 9.

13.  How can I adopt GST in case I am not maintaining Inventory?

You can enable the option Maintain Accounts Only in F11: Features > F1, and enable GST in F11: Features > F3.

14.  How does auto calculation happen for central tax/state tax/integrated tax using voucher class?

Auto calculation will happen when you create a voucher class with central tax/state tax/integrated tax as a default additional ledger.

15.  How do we carry forward excess of Input Credit to next month in Tally.ERP 9?

This happens automatically in Tally. ERP 9. There is no provision to capture input credit in GSTR-1 and GSTR-2. You can check the available input tax credit in GSTR-3 by logging in to GSTIN portal. In Tally.ERP 9, check the closing balance of ledgers created underDuties & Taxes. If there is input tax to be availed the tax ledgers will show a debit balance.

16.  How does GST Classification for Capital Goods happen in Tally.ERP 9?

You can create capital goods under Fixed Assets, and then enable GST.

17.  Why box numbers in GSTR-1 are starting from 5?

In the GSTR-1 report, the first 4 boxes are pre-filled with information related to the company and the return period. Return details begin from box 5.

Since information related to boxes 1-4 are already available on the GSTN Portal, they are not required to be uploaded again. The GSTR-1 excel file does not have fields to capture information from box 1 to box 4. Therefore, Tally.ERP 9 does not provide this information on the GSTR-1 report.

18.  I have about 20 companies in Tally.ERP 9. How do I migrate all companies at one shot?

After upgrading to Tally.ERP 9 Release 6, you just have to open all the companies one by one, after which data of all the companies data will be automatically migrated.

19.  Why is my VAT TIN getting printed on the bill?

VAT TIN gets printed on the bill when VAT is enabled along with GST. If you do not want TIN to be printed, then you can deactivate VAT features.

20.  What is the use of selecting Unknown as dealer registration type?

If you are not sure about the registration type of your party while creating or updating the party master, you can select Unknown as the registration type in the party ledger.

You can update the details later by altering the party ledger. If you want to update the details of multiple parties, you can conveniently do so from the Update Party GSTIN/UIN report. If such parties are part of taxable transactions, ensure that you update the details before filing the final returns.

21.  Where do exempt sales get captured on GSTR 1?

Exempt sales will get captured in table 9 (Nil Rated Invoices) in the table-wise report of GSTR-1.

22.  What happens if I delete invoices?

If the method of voucher numbering is set to Automatic, then duplication of the invoice number might occur if you delete invoices. For GST transactions, unique voucher numbers have to be used for all your vouchers. Therefore, we recommend that Automatic (Manual Override) should be set as the method of voucher numbering, which will ensure that unique voucher numbers are set for your vouchers.

23.  Can I have both exempt and non-exempt goods in the GST bill?

No, exempt and taxable goods cannot be part of the same bill. A tax invoice has to be issued for taxable goods and services. A bill of supply has to be issued for exempt, nil rated, and non-GST goods.

24.  How do I claim Input Tax Credit (ITC) for the purchase of capital goods?

There is no separate process for claiming ITC for the purchase of capital goods. The tax paid on the purchase of capital goods is added to the e-credit ledger, which can be used for input credit at any time.

25.  How to record expenses incurred in the furtherance of business like rent, telephone expenses, stationery and so on, and claim them under GST?

Expenses incurred for the furtherance of business, such as rent (commercial), telephone bill, stationery and so on, can be claimed under GST by recording them as purchases and not as expenses. To record such purchases, create a party ledger (party from whom such goods are procured) and ensure that GSTIN of the party is updated in the ledger. When the supplier uploads his GSTR-1, the details will appear in your GSTR-2A. You can claim input credit by confirming the same in your GSTR-2.

26.  How do I account for consignment sales?

Consignment sales is similar to other sales under GST. You can record the sales invoice with GST ledgers (if it is taxable), and record a tax payment voucher to pay tax.

27.  Why does the warning message Potential Mismatch in Tax Amount for GST appear?

The warning message Potential Mismatch in Tax Amount for GST !! appears when:

     GST ledgers are not selected while recording taxable sales or purchases.

     GST value auto calculated in the taxable sales or purchase invoice is manually altered.

If you proceed with the transaction after this warning appears, then the transaction will appear in the Summary of Exceptions in GSTR-1 (for sales transaction) or GSTR-2 (for purchase transactions), where you can correct the exceptions in the vouchers before exporting GST returns.

28.  How to make stock transfer entry between two godowns of same organisation inside the state and outside the state?

Under the GST regime, stock transfer to a godown or to an entity with a different GSTIN registration is considered taxable supply. Hence, if stock is transferred to a godown of the same organisation, it is recorded as a transfer if the godown is operating under the same GSTIN. In case the godown has a different GSTIN, it is recorded as an taxable outward supply. You can record transfers using delivery note or material out voucher types, and taxable outward supplies using sales vouchers in Tally.ERP 9.

In case of supply to a godown outside the state, it is recorded as a taxable outward supply, since the same GSTIN cannot be used for business operations in two different states.

29.  Can I view the central tax (CGST) and state tax (SGST) bifurcation of tax amount in Profit and Loss A/c?

No, the values of duties and taxes are not displayed in Profit and Loss A/c. The consolidated value of all duties and taxes is displayed in Balance Sheet under Current Liabilities. To view ledger-wise value of each tax type, drill down by selecting Duties & Taxes in Balance Sheet.

30.  How to manage GST accounts when I have multiple branches in different states?

You have to create a separate company for each registration obtained under GST for the branch offices, and maintain your data.

31.  How to account for works contract sales and purchases?

Works contract is treated as a service under GST. The works contract purchases and sales have to be recorded as taxable purchases and sales. Based on the State in which the party is located, you can select the taxable Nature of transactions provided for sales and purchases, and the GST ledgers in the invoice.

32.   How to maintain transactions of job work under GST?

You can manage your job work entries using the existing features of job work in Tally.ERP 9. When the GST rules related to job work are finalised, necessary changes will be incorporated, and made available in Tally.ERP 9.

33.  What do you mean by ineligible for input credit?

The tax paid on procuring certain services and goods is not eligible for input credit. Services such as renting of motorcab, supply of tour operator services and items that are used in manufacturing of exempt goods fall under this ineligible for input credit category. You can not claim credit for tax paid for these items.

In Tally.ERP 9 you can set goods or services as ineligible for input credit by enabling the option Is ineligible for input credit? to Yes in the GST Details screen of the item master or purchase ledger. This option can be activated by enabling Set ineligible input credit?to Yes under F12: Configure.

34.  How do I migrate Release 4.93 data to Release 6.0.1?

Open your company in Release 6.0.1 and follow the on-screen instructions. For more information, refer to Upgrading to Tally.ERP 9 Release 6.

35.  How to use my existing license in both Release 4.93 and Release 6.0.1?

After installing Tally.ERP 9 Release 6.0.1, select Configure your existing license in the Startup screen and enter your existing license details. For more information, refer to Configuring Tally.ERP 9 License.

36.  How do I renew my TSS and upgrade to GST Release?

Refer to Renewing TSS for Tally.ERP 9 and Upgrading to Tally.ERP 9 Release 6 for detailed information.

37.  While opening data in an older release, it displays error "Data of incorrect version 12, can only run version 11".

Data migrated to a later version of Tally.ERP 9 is not reverse compatible. This means, if you have migrated your data to the latest release, you cannot open the same data using an earlier release of Tally.ERP 9. Therefore, it is recommended that before migrating your data, take a backup or copy of your data and open the backed up data in the earlier release, if needed.

38.  How to calculate GST on free supplies?

GST is not applicable on free supplies or samples.

In Tally.ERP 9, enable the option Use separate actual and billed quantity columns under F11 > Inventory Features. Now, enter separate billed quantity and actual quantity including the quantity of free supplies/samples while recording the transactions. The value of invoice will be based on billed quantity and quantity of free supplies/samples will be added at zero value.

In case a separate invoice is created for free supplies/samples, record the invoice with zero value.

39.  Can I use a common GST tax ledger for all GST tax types? If not, why?

Common GST tax ledger cannot be used for all GST tax types (Central Tax, State Tax, Integrated Tax, and Cess). Each tax type has to be separately accounted for, which will lead to the following benefits:

o     It will help in the payment of tax under separate tax type heads as required by GSTN.

o     It will help in availing input tax credit for each tax type.

o     It will help the government in ascertaining the revenue for each tax type, which will enable smooth revenue-sharing mechanism.

40.  How to ascertain GST liability and GST input credit?

The actual tax liability and input credit for your business will be available in GSTR-3 on the GSTN portal.

In Tally.ERP 9, the tax liability based on the transactions recorded can be ascertained from GSTR-1. In the default view, the Total Tax Amount in the Total Outward Supplies section is the tax liability of your business for the period.

Similarly, the Total Tax Amount in the Total Inward Supplies section of GSTR-2 is the input credit available to your business for the period.

41.  How to record inclusive-of-tax transactions?

In Tally.ERP 9 Release 5.0 and later versions, recording inclusive-of-tax transaction is simplified. Earlier you had to create a voucher class with inclusive-of-tax percentages to record inclusive-of-tax transactions.

Now, this can be done by enabling the option Allow entry of rate inclusive of tax for stock item? under F12: Configure in sales or purchase invoice.

To record an inclusive-of-tax transaction

1.    Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

2.    Click F12: Configure and enable the option Allow entry of rate inclusive of tax for stock item?

The column Rate (Incl. of Tax) appears in the invoice.

Rate (incl. of Tax): Enter the rate of the item including tax in this column. The actual rate will appear in the Rate column. The tax amount will appear automatically on selecting the tax ledgers.

42.  Is it required to show GST calculation in Delivery challan? If so, what is the impact on GSTR-1?

It is required to show GST calculation in the delivery challan. A delivery challan can only be used for the transfer of stock between branches operating with the same GSTIN number within a state.

The GST details recorded in the delivery challan will not have an impact on GSTR-1.

 

16. Common Queries About GST

In Tally.ERP 9


 

1.                  I have sold goods on 28 Jun 2017, but need to record a sales return on 1 Jul 2017. How do I record my credit note for the sales return?      

Even if VAT rates are levied in the sales invoices recorded on 28 Jun 2017, you need to record the credit note with the GST rates applied to the items returned on 1st Jul 2017.

2.         How do we calculate IGST, when buyer and consignee are in different locations?

IGST is applicable on the goods and services if the buyer's state is different from your business location. Consignee in such cases may be in a different location where the goods can be delivered. Refer to Interstate sales for more information on calculating IGST.

3.         What are the different forms to be filed and the current filing dates under GST?

The following table lists the details of the returns to be filed and the respective filing dates:

Forms for returns filing under GST

Dates for returns filing

GSTR-3B for July 2017

20 Aug 2017

GSTR-1 for July 2017

5 Sep 2017

GSTR-2 for July 2017

10 Sep 2017

GSTR-1 for August 2017

20 Sep 2017

GSTR-3B for August 2017

20 Sep 2017

GSTR-2 for August 2017

25 Sep 2017

Normal schedule for return filing

October 2017

Note: The dates are applicable for the respective month and are subject to change after this period.

4.         What does invoice matching mean under the GST regime?

Invoice matching is a mechanism based on which the sales invoices submitted by a supplier is matched against the corresponding purchase invoices submitted by a buyer. According to the Goods and Services Tax (GST) law, a buyer can claim input tax credit on purchases only if the outward supply filed in GSTR-1 by the supplier matches the inward supply filed in GSTR-2 by the buyer. Invoice matching is done automatically based on the data filed in GSTR-1 and GSTR-2 by both parties involved in a transaction.

5.         How can I get the HSN code for my goods and services?

You can find the chapter-wise-rate-wise GST rate schedule for goods and services on the website: http://www.cbec.gov.in/htdocs-cbec/gst/index. Alternatively, contact your CA/business consultant for more details.

6.         What is the format of GSTIN?

GSTIN is a 15-digit unique registration number provided to a taxpayer upon successful registration of his business details on the GST portal. For example, the GSTIN obtained in Karnataka would look as follows:

The following table lists the state-wise code used in generating the GSTIN:

State/UT code

State or Union Territory

State/UT code

State or Union Territory

State/UT code

State or Union Territory

State/UT code

State or Union Territory

01

Jammu & Kashmir

11

Sikkim

21

Odisha

31

Lakshadweep

02

Himachal Pradesh

12

Arunachal Pradesh

22

Chhattisgarh

32

Kerala

03

Punjab

13

Nagaland

23

Madhya Pradesh

33

Tamil Nadu

04

Chandigarh

14

Manipur

24

Gujarat

34

Pondicherry

05

Uttaranchal

15

Mizoram

25

Daman and Diu

35

Andaman and Nicobar Islands

06

Haryana

16

Tripura

26

Dadra and Nagar Haveli

36

Telangana

07

Delhi

17

Meghalaya

27

Maharashtra

 

 

08

Rajasthan

18

Assam

28

Andhra Pradesh

 

 

09

Uttar Pradesh

19

West Bengal

29

Karnataka

 

 

10

Bihar

20

Jharkhand

30

Goa

 

 

7.         Are all taxes subsumed under GST?

The following lists the taxes that will be replaced by GST:

Taxes replaced by GST at the centre

Taxes replaced by GST at the state

Taxes not covered under GST

Central Excise duty

State VAT

Alcohol for human consumption

Duties of Excise (Medicinal and Toilet Preparations)

Central Sales Tax

Electricity

Additional Duties of Excise (Goods of Special Importance)

Purchase Tax

Sale/purchase of Real Estate

Additional Duties of Excise (Textiles and Textile Products)

Luxury Tax

Five specified petroleum products (to be brought under GST later on recommendation of GSTC)

Additional Duties of Customs (commonly known as CVD)

Entry Tax (All forms)

Tobacco Products

Special Additional Duty of Customs (SAD)

Entertainment Tax (except those levied by the local bodies)

 

Service Tax

Taxes on advertisements

 

Cesses and surcharges, when they are related to supply of goods or services

Taxes on lotteries, betting and gambling

 

 

State cesses and surcharges insofar as far as they relate to supply of goods or services

 

8.         Are excise and custom duty applicable on tobacco and petro-chemical products even after GST implementation?

All goods and services are likely to be covered under GST except the following:

●    Alcohol for human consumption

●    Electricity

●    Sale/purchase of Real Estate

●    Five specified petroleum products (to be brought under GST later on recommendation of GSTC)

●    Tobacco products

Continue to keep yourself updated on GST. Please visit our blog or refer to our GST app for GST-related updates.

URL of GST blog: http://blogs.tallysolutions.com/

URL of Tally for GST app in Play Store: https://play.google.com/store/apps/details?id=com.tallysolutions.tallyforgst

9.         What is the HSN code for Tally Software?

The HSN code for Tally.ERP 9 (and all information technology software) in the current regime is 8523.80.20.

10.       One of my clients is importing goods. According to GST returns, we need to upload only sales. How about import purchase? How will it be reflected on my GST portal?

Imports of goods and services are treated as inter-state supplies and therefore IGST will be levied on the import. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will be accrued to the State where the imported goods and services are consumed. Full and complete set-off will be available on the GST paid on import on goods and services.

In general, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on you as the recipient under the reverse charge mechanism. Please note that import purchases will be captured in GSTR-2 in Column 5 - Goods/capital goods received from overseas (Import of goods).

For more information, you can refer to the linked document (http://www.cbec.gov.in/resources/htdocs-cbec/gst/draft-return-formats-26092016.pdf).

11.      If there are pending returns to be filed from the VAT regime, will they be carried forward to GST?

In order to carry forward your available ITC from the VAT regime to GST, you need to ensure that all your compliance formalities in VAT, including VAT returns and payments, are fulfilled. For this purpose, please ensure that all returns are filed and closed in VAT. For more details, you may contact your chartered accountant or visit our blog.

 12.      Is GST content available for Tally Academy Partners to train their students?

GST training has already been scheduled for all registered Tally Educational Institutes, and a PPT document on GST has been shared accordingly. The recorded webinar videos are also available on our blog for GST at http://blogs.tallysolutions.com/gst-webinars/.

Please write to rahul.shandilya@tallysolutions.com for further clarification.

 13.      Where can I find the schedule for GST seminars or workshops?

The GST workshop or awareness camp is scheduled for customers, partners, and students. For details of the venue and date, visit our blog post (http://blogs.tallysolutions.com/hi/gst-events/).

 14.      What is the procedure to register for GST?

It is assumed that all existing Central Excise taxpayers are registered under State VAT Department. All existing taxpayers and VAT dealers will be given a provisional ID and password by the state VAT authority. Create your username and password at the GST common portal using this provisional ID and password.

GST common portal: https://www.gst.gov.in/

The detailed procedure for registering is available at: https://tutorial.gst.gov.in/userguide/#t=Enrolment_of_Existing_taxpayer_with_Provisional_ID_and_Password.htm

 15.      I am a Tally partner/customer. How do I get trained on GST?

Customers can join the Upcoming Webinars to know more about GST. Alternatively, contact your partners for a product demo, if needed.

Partners can contact their Business manager or Region Sales Manager for more details on the scheduled training in their location.

 16.      How is the input credit liability adjusted against the different GST components?

As per the GST act, input tax credit can be adjusted against your GST liability as shown below:

Input tax credit

Set off against tax liability

CGST

CGST and IGST (in this order)

SGST

SGST and IGST (in this order)

IGST

IGST, CGST, and SGST (in this order)

For detailed information, refer to How to Set Off Input Tax Credit Against Tax Liability in the GST Regime.

 17.      What is the criteria and eligibility for claiming ITC under the GST regime?

Under the GST regime, input tax credit can be availed by every registered taxable person on all inputs used or intended to be used in the course of or for furtherance of business. However, claiming ITC is subject to certain conditions:

o     You should have the Tax Invoice/Debit or Credit Note issued by a registered person.

o     The goods/services should have been received.

o     You should have filed GSTR-3 for the related month

o     The tax charged has been paid to the government by the supplier, either in cash or through utilization of ITC.

To know about the criteria and eligibility in detail for claiming ITC, refer to the following blogs:

o     Your checklist for availing input tax credit

o     Scenarios where you cannot avail input tax credit

Refer to Transferring Tax Credits of VAT, excise and service tax to GST, for more information.

18.       If my GSTR-1 and GSTR-2A are all correct, can I upload my GSTR2 and GSTR 3 together?

Yes, you can upload GSTR-2 and GSTR-3 together on the same day. GSTR is an auto-populated return, and therefore, you need to download the same on or after 20th of the month when the return was filed. This helps in calculating GST liability payable after adjusting the provisional ITC. However, you can pay your GST liability in advance which will be credited to your e-cash leger on the GST portal. While generating GSTR-3, the same e-cash ledger will be debited up to the payable amount.

19.              What is the difference between B2C large and B2C small invoices?

B2C large invoices

B2C small invoices

The value of the interstate sales transaction is greater than or equal to Rs. 2.5 Lakh.

The value of the interstate sales transaction is less than Rs. 2.5 Lakh.

Also includes local sales irrespective of the value of the transaction.

 
 
 
 
 
 
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