Antraweb Technologies Pvt. Ltd Email: [email protected] Tel: 022-40864086 www.an traweb.com TALLY.ERP9 READY GST E-Book GOODS & SERVICES TAX The Document covers all the commonly asked questions, raised by business owners about the Procedures, challenges of implementation in companies, Preparations of GST.
Page 2 Table of Contents GST in Tally.ERP9 ............................................................................................ 4 Configuration of Masters in Tally under GST .......................................................... 5 Party Ledger ........................................................................................................................................... 5 Operation Ledger (Sales\Purchase)................................................................................................... 7 Income & Expenses Ledger (Independent Expenses or Income) ............................................... 9 Duty Ledger .......................................................................................................................................... 10 Stock Item Master (Stock Group) with UQC................................................................................... 10 GST Related F12 Configuration ......................................................................... 12 Transaction under GST in Tally ERP9 .................................................................. 14 Sales Related Transactions (Outward Supply Goods/Services)................................................. 14 o Local Sales within state to Registered Dealer............................................................................ 14 o Interstate Sales out of Sales to Unregistered Dealer ............................................................... 16 o Sales made to end Consumer (Interstate & Intrastate)........................................................... 18 o Intrastate - End Consumer Transaction...................................................................................... 18 o Interstate - End Consumer Transaction...................................................................................... 20 o Export Invoice with LUT/Bond (Either in INR or Foreign Currency) ...................................... 21 o SEZ Invoice with LUT/Bond: ........................................................................................................... 24 o Export Invoice without LUT/Bond ................................................................................................ 25 o SEZ Invoice without LUT/Bond...................................................................................................... 27 o Outward Service Invoice to registered Dealer........................................................................... 28 o Raising Bill of Supply (Nil Rated Item).......................................................................................... 29 o Credit Note/ Debit Note against Sales Invoice........................................................................... 31 o Sales via E-Commerce Operator (Buyer and Consignee)........................................................ 31 o Bank Charges deduction ................................................................................................................ 35 o Advance Receipt Tax Liability: ....................................................................................................... 39 o Refund of Advance Receipt:........................................................................................................... 44 Purchase Related Transaction (Inward Supply Goods/Service) ................................................ 49 o Local Purchase from Registered Dealer...................................................................................... 49 o Interstate Purchase from Registered dealer.............................................................................. 52 o Purchase of Printing & Statutory (Consumable Item).............................................................. 53
Page 3 o Purchase of Fixed Assets (Capital Goods)................................................................................... 57 o Purchase of Goods/exp in-eligible for ITC.................................................................................. 60 o Purchase from UN-Registered Dealer (RCM)............................................................................. 70 o Import of Goods:.............................................................................................................................. 73 o Credit Note/Debit Note against Purchase Invoice.................................................................... 85 o Purchase from Composite Dealer ................................................................................................ 85 o Purchase from SEZ:.......................................................................................................................... 87 Adjustment and Tax Liability Payment:.......................................................................................... 94 o OPENING BALANCE OF OLD TAXES SUCH AS VAT\EXCSIE\SERVICE TAX................................. 94 o ITC Adjustment: ................................................................................................................................... 95 o Payment of Tax Liability..................................................................................................................... 99 o Branch Transfer (Outward) Entry................................................................................................... 101 Glossary.................................................................................................... 105
Page 4 GST IN TALLY.ERP9 Tally is offering Tally.ERP 9 for small and medium businesses to manage their enterprises efficiently. For over three decades now, Tally.ERP 9 is being used by business owners across India to manage their day-to day operations and generate required business reports which help make important decisions. Tally.ERP 9 is packed with a vast set of robust features that make the software reliable and flexible to use. We have enumerated these features below. These are some of the key ERP Software features you as a business owner should look for in any ERP software. Accounting Management in ERP software Banking Transactions Support in ERP software Inventory Management GST Compliances in ERP software Managing unlimited Companies and Groups Companies Security Feature in ERP software Synchronization of Data from multiple location Tally.ERP 9 Release 6.x is GST compliant. It is designed to handle GST transactions, reverse charge scenarios, advances and so on. You can easily file GST Returns using Tally.ERP 9 Release 6.x with complete support for GSTR-1, GSTR-2 and GSTR-3B. With regard to GSTR-2, business owners and GSTPs can generate the form in JSON directly and file the return. Buying dealers can add missing purchase invoices, and purchases made as imports and reverse chargeable services to claim their Input Tax Credit. Business owners and GSTPs can send reports of mismatching or missing invoices to suppliers so that they take quick action to reconcile the lapses. A salient feature of Tally Release 6.x is that it marks vouchers in which changes are made during the invoice matching process. The list of changed vouchers can be used to update the books without worrying about overwriting of data or appended transactions getting erased. It helps to maintain the process of GST Transaction including Inward Supply, Outward Supply, RCM, Advance Receipt Liability etc.
Page 5 CONFIGURATION OF MASTERS IN TALLY UNDER GST Party Ledger Creating Party ledger including debtors and creditors, you need to make sure that all the necessary details are provided as shown below: Make sure you have enable the option “Maintain balance bill by bill” to track bill wise outstanding, Country, State, Address, PAN etc. Enabled the option of “Set Alter GST details” to provide GSTIN details like Registration Type, other options as per applicability along with Party Type and GSTIN or UIN of Party.
Page 6 Tips To maintain multiple addresses & GSTN of the Party without creating different Party ledger you Can follow the below process: Gateway of Tally Press F11 Accounting Feature Enable the Option “Maintain Multiple Mailing details for company and ledgers” Now go to alter mode of Party Ledger (Gateway of Tally Account Info Ledger Alter Select Party) Press F12 Enable the option for Provide multiple Address Mention name of Location and mentioned address.
Page 7 Operation Ledger (Sales\Purchase) Creating Sales ledger\Purchase ledger depends on Chart of Accounts maintained by organization. You may create this ledger in following way according to your chart of accounts Sales: Only “Sales Account” or Local Sales/Interstate Sales/Export Sales or Sales GST@5% / Sales GST@18% / Sales GST@28% etc. Purchase: Only “Purchase Accounts” or Local Purchase/ Interstate Purchase/Import Purchase or Purchase GST@5% / Purchase GST@12% / Purchase GST@18% etc. You can create any of above example but while creating this ledger configure the ledger following ways: Case A: Inventory to be maintained Above configuration will be done in any kind of Sales or Purchase ledger (except Export\SEZ Sales against LUT\Bond) In case of Export\SEZ Sales against bond then enable the option of set alter GST details and mention nature of Transaction as Export LUT\Bond or SEZ Sales LUT\Bond and Taxability as Exempt.
Page 8 Note: Do not enable the option of “Set/alter GST details” because HSN code and Rate of GST will be mentioned to your stock item details. If you have already mentioned then remove it by press ALT+L (Tax Rate History) Case B: Inventory not to be maintained. You need to enable the option of Set\alter GST details and mention HSN and Rate of GST there
Page 9 Income & Expenses Ledger (Independent Expenses or Income) Expense ledger is treated as service ledger and needs to be configured as shown below Note: While providing the GST Details for Ledger, the Nature of transaction shall be set to “Not Applicable” because same expenses or income ledger can be used in different transaction such as
Page 10 local or interstate & Registered or Non Registered GST. In case you have already set that then you can remove by press ALT+L. Duty Ledger Similar to operational ledger we can create Duty ledgers in a different way such as o CGST, SGST, UTGST, IGST OR o Input & Output CGST, SGST, IGST, UTGST method or o Input & Output CGST@5%/12%/18%/28% method There is not any issue in creating tax ledger in any of above method but at end of month it is necessary to knock of your Input Tax with Output Tax ledger. Note: Do not mention GST Rate (Mention only when you are creating Duty ledger according to GST Rate wise) Stock Item Master (Stock Group) with UQC Stock Group:
Page 11 While creating stock item and defining GST details first we need to analyze that Rate of GST is same along with same HSN code so instead of defining GST Rate and HSN for each item Just create a stock Group and define GST details Gateway of Tally Inventory Info Stock Group Create or Alter UOM (Unit of Measurement) Gateway of Tally Inventory Info Unit of Measure Create or Alter Stock Item Gateway of Tally Inventory Info Stock Item Create
Page 12 GST RELATED F12 CONFIGURATION F12 configurations are application centric configurations that are present across all screens of Tally.ERP 9. These configurations can be changed and managed any number of times to suit changing needs. For example, if you want to record your purchase transactions in debit/credit mode, the same can be set in the F12 configurations. Configuration options, affect all the companies maintained in the same Tally.ERP 9 directory and setting the configuration for one company will affect the configuration of other companies in that particular data directory.
Page 13 Know more about F12 Configurations o F12 Configure in Payment/Receipt/Journal Press F12 two times in Payment/Receipt/Journal Show party details will help you to mention Party name at entry level without creating Party ledger in Tally. It is useful in case of Cash Purchase or Cash Expenses with GST. Allow Modification of Tax Details for GST will help you to override GST information over already defined information under ledger or stock such as GST Rate/ Tax Classification etc. o F12 Configure at Tax Classification Level F12 Configure at Ledger\Stock Item Creation Level
Page 14 This option will help you to get more details to define TRANSACTION UNDER GST IN TALLY ERP9 Sales Related Transactions (Outward Supply Goods/Services) o Local Sales within state to Registered Dealer Local Customer sold goods with multiple GST rates to a Local Dealer and charged Delivery Charges/Courier Charges/Transport Charges in the invoice.
Page 15 Note: 1. Voucher Number will treated as Sales Invoice Number 2. Charges amount which has been recovered from buyer is kind of Composite supply hence Tax on Charges will be in ratio of Value of Items 3. If you want to cross check your Tax Amount, press ALT+A (Tax Analysis) to check the tax amount. 4. Configuration of ledger and stock is already shown in master configuration topic. Why Delivery Charges\Courier Charges\Transport Charges ledger amount has been divided into ratio of value and how the ledger has been configured? Well first of all we need to understand if goods has been sold by us and any delivery Charges\Transport Charges\Courier Charges has been incurred then Rate of Tax Depend on that who pay the amount. Case A) if Charges has been paid by buyer directly If amount is paid by buyer directly then supplier cannot mention charges in Tax Invoice. An independent Invoice for expenses will be given by Transporter or Service Provider to buyer where GST will be collected by Transporter or Service Provider (Supplier of Goods have to be collected on GST on principal Goods).
Page 16 Case B) if Charges amount has been paid by Supplier If Charges has been paid by Supplier for delivering the product then the transporter will raise expenses bill to supplier for rendering services and amount will be paid by supplier to the transporter. The transaction between transporter and supplier contains independent invoice wherein ITC can be claimed by Supplier of goods. Now such expenses incurred by supplier will be collected from buyer in Tax Invoice that is called composite supply hence Charges amount will be in kind of reimbursement but whatever amount shown in Tax Invoice that will be charge according to Rate of Product in Tax Invoice according Ratio of their Value. Indirectly ITC will be passing on to buyer. (For more details please contact to Tax Consultant or refer Composite Supply details) o Interstate Sales out of Sales to Unregistered Dealer Example Sales made to Registered Dealer from Different State
Page 17 Note: Configuration of Courier Charges or Transport Charges ledger has been shown in Local Sales Transaction. In case while Passing transaction if Tax Classification Box appear do not mention any details until necessary because this information will be taken from Party master and stock item master configuration
Page 18 o Sales made to end Consumer (Interstate & Intrastate) Goods can be sold to end consumer as well but Consumer might be from your state or from different state. Hence we need to track sales made to B2C Small and B2C large (In case sales bill value exceed 50000 Rs in single Invoice you must have to record Buyer name, Address, and State) o Intrastate - End Consumer Transaction Credit Basis: In case of Credit Basis we need to create Ledger of Consumer as below
Page 19 You can mark Registration type as Consumer or Un-registered both will be treated as sales made to end consumer CASH BASIS: Where amount has been paid immediately no and you do not want to create ledger of consumer in books of accounts you can pass the entry but following way
Page 20 o Interstate - End Consumer Transaction Below 2.5 Lacks Cash or Credit Basis (Cash or Credit basis explained in example of Intrastate Sales to End Consumer) Above 2.5 Lacks Cash or Credit Basis (Cash or Credit basis explained in example of Intrastate Sales to End Consumer)
Page 21 This above entry will be shown under column of B2C large in GSTR1 o Export Invoice with LUT/Bond (Either in INR or Foreign Currency) If Supplier has opted for LUT or Bond so goods exported will be Non Taxable. Goods Exported may be Taxable item or Non Taxable Item In case of export against LUT or Bond no tax will be collected while exporting hence ITC available on goods purchase or any inward supply can be claim as refund How to Process same entry Party Master: You need to define Country of Party (other than India) Sales Master: Configure your sales in below format
Page 22 Nature of Transaction should be as Export LUT\Bond and Taxability should be Exempted Goods (Mention your LUT\Bond Numbers in F11 F3 statutory features)
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Page 24 DO NOT MENTION ANY DETAILS IN THIS BOX o SEZ Invoice with LUT/Bond: If goods have been supply to SEZ area it will be treated as Local Export. SEZ are might be in your state or in different state but it will treated as Local Export only hence IGST will be applicable but in case if you have opted for LUT\Bond then it is exempted. ITC available can be claim as refund. Party Master: Define below option Sales Ledger: Transaction
Page 25 o Export Invoice without LUT/Bond In case of export without LUT Bond Liability to be paid and can be reclaim in form of refund Party Master (Same as configured in above export Entry) Sales Ledger: Create ledger as Export Sales and enable the GST but do not mention any Rate or HSN code in sales ledger
Page 26 In above entry IGST ledger has been select to effect GSTR1 report if we will not select ledger GSTR1 report will not be update. Now due to IGST outstanding amount of Party is increase and same time we need to claim ITC as refund and adjust against any ITC available Now along with this entry we need to adjust outstanding amount of Party by passing a JV
Page 27 Tax Refundable ledger has been configured under Current Assets as it can be claim in form or refund. Once amount has been received in your Bank Account Pass Receipt entry Dr Bank and Credit Tax Refundable ledger credit o SEZ Invoice without LUT/Bond In case of SEZ Sales without LUT Bond Liability to be paid and can be reclaim in form of refund. Party Master (Same as configured in above SEZ Entry) Sales Ledger: Create ledger as SEZ Sales and enable the GST but do not mention any Rate or HSN code in sales ledger. In above entry IGST ledger has been select to effect GSTR1 report if we will not select ledger GSTR1 report will not be update. Now due to IGST outstanding amount of Party is increase and same time we need to claim ITC as refund and adjust against any ITC available Now along with this entry we need to adjust outstanding amount of Party by passing a JV
Page 28 Tax Refundable ledger has been configured under Current Assets as it can be claim in form or refund. Once amount has been received in your Bank Account Pass Receipt entry Dr Bank and Credit Tax Refundable ledger credit o Outward Service Invoice to registered Dealer In case of Service Industry we offer services so raising service invoice following configuration need to be done Party Master (Select State/GSTIN Number/Registration Type) Income/Service Ledger:
Page 29 Nature of Transaction should be Not Applicable Transaction (Entry should be in account Invoice Mode PRESS ALT+I) o Raising Bill of Supply (Nil Rated Item) Goods given as Sample\Free of Cost\ Damage or having Zero Rate will be issue at Bill of Supply Party Master: Same configuration explained above Stock Items :
Page 30 No GST Ledger needs to select but while you print this Invoice it will show as Bill of Supply
Page 31 It will effect as NIL Rated Table in GSTR1 o Credit Note/ Debit Note against Sales Invoice COPY FROM PDF AVAIALBLE ON GST PORTAL o Sales via E-Commerce Operator (Buyer and Consignee) In case of Goods sold via E-Commerce Portal we need to follow separate buyer and consignee details Example: Goods sold 10000 Rs + 18% Tax to Customer (B2B or Consumer) using Amazon India Pvt. Ltd. In this case goods will be delivered to Customer but amount will be collected from Amazon India Pvt. Ltd E-Commerce Ledger: Please enable the below option in Party Master Ledger
Page 32 Before Raising Invoice Press F12 at Entry Level and enable the option of Enable Supplementary Details and Allow separate buyer and consignee details
Page 33 As soon as you will select Party as Amazon India Pvt. Ltd Mention actual buyer name GSTIN Registration details In case of Return of Goods pass Credit Note as shown above Above Sales Entry Shows amount Receivable from Amazon (15000+1350+1350) =17700 Now Amazon Pays only 16000 and balance amount has been charged as Commission then in that case Amazon is going to give Invoice for commison charged how to pass the entry
Page 34 (You cannot pass receipt entry and commission charged entry in single entry) 1- First Pass Receipt Entry for actual receipt Balance amount (17700-16000) =1700 Rs will be commission including GST Track your Bill reference for Commission Exp
Page 35 Passing above entry will help you to get proper GST Report in Tally.ERP9 o Bank Charges deduction A) On Receipt: Example 300000 Rs from Customer against sales where bank deducted Charges 1180 (Local Sales or Export Sales) To get Proper GST Report Pass the entry in following way Using Journal Voucher
Page 36 Before Passing JV Press F12 at entry level enable following option Allow Cash accounts in Journal Vouchers Allow Modification of GST Details While Saving Entry Click option of Override Using Receipt Voucher Passing Amount receipt entry and Bank charges deduction in same entry will not affect your GSTR2 Report hence we need to pass entry on alternate solution way
Page 37 Above entry shows party ledger has been credited with full amount to knock outstanding amount and below that charges amount has been shown under AXIS Bank Invoice Ledger We cannot select Bank Charges ledger instead of AXIS Bank INVOICE ledger because Charges expenses should be shown separately
Page 38 B) ON PAYMENT: While Making Payment to any Party if Bank has charge for service along with GST you can process the entry in following ways Note: GST amount will not be reflected automatically you have to mention amount manually
Page 39 o Advance Receipt Tax Liability: Amount Received on advance basis from Party is subject to be GST (Applicability depend on notifications release by Government) Example: Amount of 100000+ 18% GST has been received from softech India on 10th Jan 2017 and Invoice raised on 5th Feb for 200000+18% GST Pass Following Entry 1- Advance Receipt from Party 2- Raising Tax Liability at end of Month 3- Sales Invoice 4- Tax Liability Adjustment 1- Advance Receipt from Party: Before passing entry Press ALT+V & Press F12 enable Party details for GST
Page 40 Advance Receipt Details you need to select Stock Item or Press ALT + L in case against service ledger Now Check GSTR1 Report
Page 41 Check Report and Raise Tax Liability for according to rate wise 2- Raising Tax Liability at end of Month You can raise Tax Liability from GSTR1 above report by clicking ALT+J or You can pass Journal Entry from Gateway of Tally
Page 42 Select Journal Voucher Press ALT+J GST Increase of Tax Liability On Account of Advance Receipt NOTE: After Selection of GST Ledger Mention GST Rate and Taxable Value Tax on Advance Ledger should be under Current Assets 3- Sales Invoice: Raise Sales Invoice
Page 43 Tips: To track against advance bill Press F12 at Sales Entry level and disable option of use default bill of allocations 4- Tax Liability Adjustment
Page 44 Pass Journal Entry Press ALT+J GST Decrease of Tax Liability Sales against Advance Receipts This entry need to pass as and when sales invoice has been raised and you need to knock of Tax Liability which was raised on advance receipt. o Refund of Advance Receipt: Sometime advance receipt need to be refunded on certain scenario as sales order got cancelled or any further reason. In such case if we refund advance amount we need to analyze it that I) Amount has been refunded in same month which month it was received. If such case is there then we do not have to worry as we have not raised Tax liability and we have not paid Tax on it Example: Rs 11800 have been received on 15th Jan on Advance Basis but it has been refunded in same month on 20th Jan Entry1: Advance Receipt Entry
Page 45 Above entry will be reflecting under GSTR1 to raise Tax liability Entry 2: Refund of Advance Receipt Go to Payment Voucher Click on ALT+F (Refund of Advance Receipt)
Page 46 Above refund entry will remove effect from GSTR1 Report II) In case Amount has been Refunded in next month Sometime advance may be refunded in next month or onwards but in such case liability have been booked already and liability has raised or Tax has been paid on it. Example: Rs 11800 have been received on 15th Jan on Advance Basis but it has been refunded in same month on 20th Feb (Next Month) Entry 1: Passing advance Receipt
Page 47 Entry 2: Raising of Tax Liability Pass Journal Voucher Click on ALT+J Increase of Tax Liability On Account of Advance Receipt
Page 48 Entry 3: Refund of Advance Pass payment Entry Click on ALT+F Mention Receipt number and Date Entry 4: Passing Journal Entry to Decrease Tax Liability
Page 49 Pass Journal Entry Press ALT+J GST Decrease Tax Liability Cancellation of Advance Receipt. Above entry will reduce Tax liability from GSTR1 and will reflect under Credit /Debit Column. Purchase Related Transaction (Inward Supply Goods/Service) o Local Purchase from Registered Dealer Example: Goods Purchase from Registered dealer from Same State worth Party Master: Mention State and GST details of Party
Page 50 Purchase Ledger: Do Not enable the option of Set Alter GST Details (Not define GST details in Purchase Ledger) Same Configuration for Interstate Purchase and Import Purchase as well Stock Item: