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Page 52 TRASNPORT CHARGES ON INVOICE: this expense in composite expenses hence needs to configure below way For more details on this configuration please check local sales Invoice and Important Point to know at end of this book o Interstate Purchase from Registered dealer As like to Local Purchase we need to process entry of Interstate Purchase Party Master : Select State of Party Purchase Ledger: Interstate Purchase (Enable GST as Applicable but do not enable the option of set alter GST details and do not fill any GST details there. Stock Item : Enable GST as Applicable and enable the option of Set alter GST details and mention GST details there (Please refer Master Configuration Page about Master Configuration)
Page 53 o Purchase of Printing & Statutory (Consumable Item) It is general that we buy consumable goods such as Stationary or electric equipment which are not for sale purpose hence these items need to be consume at our end. Example: Purchase following Stationary Items Citizen Calculator 10 Pcs @ 120 Each = 1200 (5 % GST) A4 Size Paper 5 Pack @ 500 each = 2500 (12% GST) White Board Marker 20 Pcs @ 25 each = 500 (18% GST) To solve above example we have 2 alternate solutions Solutions 1: Without Creations of Stock Item Before Passing Entry Find Taxable value for Each GST Rate Taxable Value for 5 % = 1200 Rs Taxable Value for 12% = 2500 Rs Taxable Value for 18% = 500 Rs
Page 54 Create Following Ledger: Supplier Party: Mention Name address with GST details Expenses Ledger: Create ledger as Printing and Stationary as Below Do not define and any HSN but put any of GST Rate Transaction: Go to Purchase Voucher Click on ALT+I (Account Invoice) Press F12 Enable the option of Allow modification of Tax details for GST Same Stationary ledger has been selected for multiple times according to GST Rate wise As soon as you will mention first amount 1200 a box will appear as below (If box is not as it is shown below then Press F12 at same page and enable all the details)
Page 55 Mention Nature of Purchase Define Rate of GST on 1200 Rs as 5% GST Similarly each time this box will appear and mention GST Rate for each value. (Click on ALT + A at Entry Level and Press ALT+F1 to see details of GST Charge on different rate) Before saving entry this box will appear and you need to click on Override option to save entry Solutions 2: With Creations of Stock Item You can create stock for item that have been purchase as below To create stock item follow the process Gateway of Tally Inventory Info Stock Item Create Press F12 Enable option of Allow Advance Entries in Master
Page 56 Enable GST details and mention GST details of items in set alter GST details AND enable the option of Treat all Purchase as consumed Similarly of Stock item can be created. Creating stock of consumable goods will enable you to maintain HSN wise of consumable items. Transaction: Before Passing Entry make the following Changes 1-Gateway of Tally Account Info Ledger Alter Printing & Stationary Enable the option Inventory Value as Affected
Page 57 2- Go to Purchase Voucher item Invoice mode Press F12 (2 TIME) Allow expenses and Fixed Assets for accounting allocations YES In case after selection of Ledger Printing and Stationary if Tax Classification box appears do not mention anything ignore the box and move ahead o Purchase of Fixed Assets (Capital Goods) In case of Fixed Assets Purchase we can Pass the entry in 2 different ways Solution 1: Without Creating Stock Item Party Ledger: Create Party Master and mention state and GST details Assets Ledger: Create your Fixed Assets ledger as Gateway of Tally Account info Ledger Create the stock item as shown below:
Page 58 Define GST Rate of Capital Goods Transaction: Go to Purchase Voucher Click on ALT+V (Voucher Mode) Press F12 (2 times) Enable the option of Allow Expand Fixed assets in purchase voucher
Page 59 Entry can be passed in voucher mode only & GST amount will not reflect automatically Solution 2: By Creating Stock Item You can create stock item of Capital Goods by following ways Gateway of Tally Inventory Info Stock Item Create Press F12 Enable the option of Allow advance entries in master.
Page 60 Mention GST Rate and HSN details of Stock item in Set alter GST details You need to alter your Fixed Assets Ledger as below Account Info Ledger Alter Select Fixed Assets Enable the option of Inventory Value as affected Transaction: Go to Purchase Voucher in Item Invoice mode Press F12 (2 time) Enable the option of Allow expenses and Fixed Assets for accounting allocation Above entry will hit your Fixed Assets value in Balance sheet and it will not increase your stock item but it will help you to know number of Capital Goods available o Purchase of Goods/exp in-eligible for ITC Sometime Goods Purchase or any Expenses incurred is in-eligible for ITC so to process the entry follow the below way Example: Purchase of Food from Hotel Maharaja (GSTIN Holder) for Rs 2000+ 5% GST Voucher: You can pass entry in either Purchase Voucher or Payment Voucher Transaction: To Pass the entry
Page 61 Gateway of Tally Accounting Voucher Payment or Purchase Select Party in case of Credit (Purchase Voucher) or Cash / Bank Ledger on immediate Payment Before Passing Entry Press F12 (2 time) in Payment Voucher Enable the option of Show Party details and Allow modification of GST
Page 62 Under the box of Tax Classification Make the option YES of INELIGIBLE ITC (If above box does not contain all the field then press F12 on same page and enable all the options) Expenses under RCM (Reverse Charge Mechanism) Some expenses are subject to be Reverse Charge Tax as like in case of GTA or Lawyer Fees etc. Example: We Paid to Sojat Travels (Pure GTA) (GSTIN Holder) Rs 10000 on Bus service but at same time GST on amount need to be paid by us Entries to be followed 1- Booking of Expenses in Purchase Voucher or Payment Voucher 2- Raising of Tax Liability 3- Compulsory Payment of Tax 4- Claiming ITC on it Master: Party Master : Create Party from Account Info Ledger Create Mention GST details of Party Expenses Ledger Transport Expenses as below
Page 63 \ Please do not select any nature of Transaction but if you wish then you can enable the option of Reverse Charge Applicable Transactions Entry 1: Booking of Expenses in Purchase Voucher (on credit Basis) Go to Purchase Voucher Account Invoice Mode (ALT+I) Press F12 Enable the option allow modification of GST details
Page 64 Entry 1: Booking of Expenses in Payment Voucher (Cash Basis) Go to Payment Voucher Press F12 2 time Enable option of Show Party details and Allow modification of GST
Page 65 Entry 2: Booking Tax liability at end of Month Before Booking Liability on RCM Check GSTR2 Report
Page 66 Drill down the Report Now Check Assessable value and Rate of GST amount of Liability to be booked Pass Journal entry to Raise Tax Liability Go to Journal Voucher Click on ALT+J GST Increase of Tax Liability Purchase under Reverse Charge
Page 67 Tax on RCM Ledger in under Current Assets as we can claim ITC in next month and NEW CGST RCM and SGST RCM ledger has been created to view Liability amount Now after Passing Journal Entry for Liability GSTR2 Report will show now Liability has booked but ITC to be Booked
Page 68 Entry 3: Compulsory Payment of Tax Go to Payment Voucher Click on ALT +S Entry 4: Claiming of ITC Pass Journal Entry Select Date Click on ALT+J GST Increase of Input Tax Credit Purchase under reverse charge
Page 69 Debit Normal CGST and SGST ledger as ITC can be claimed now hence you need to Debit normal CGST and SGST Ledger
Page 70 o Purchase from UN-Registered Dealer (RCM) Generally goods purchase from unregistered dealer was subject to RCM Tax earlier but till next notification it has been postponed hence goods purchase from UN-Registered dealer will be treated as Purchase Exempt Hence while Passing entry just Tax Classification as Purchase Exempt. If you wish to Pass Earlier entry in Tally then follow the below process Transactions ENTRY 1 - Booking of Expenses (Purchase or Payment) ENTRY 2 - Raising of Tax Liability ENTRY 3 - Compulsory Tax Payment ENTRY 4 - Claiming ITC (Input Tax Credit) To Process the entry please note the following Point Party Master: Mark Party GSTIN as Unregistered
Page 71 ENTRY 1: Booking of Expenses Please follow entry shown in GTA RCM case only thing Nature of Tax Classification should be “Purchase from Unregistered Dealer Taxable” ENTRY 2: Raising of Tax Liability Go to Journal Click on ALT+J GST Increase of Tax Liability Purchase from Unregistered Dealer (Entry Same as Shown in GAT RCM)
Page 72 ENTRY 2: Payment of Tax Liability Please follow Same Entry Shown in GTA RCM ENTRY 4: Claiming of Input Tax Credit Go to Journal Entry Click on ALT + J GST Increase of Tax Input Tax Credit Purchase from Unregistered Dealer
Page 73 o Import of Goods: Goods Imported from different country is subject to IGST but IGST amount arrived after certain calculation adding some expenses and custom duty on it. We will understand the same concept with help of below example and multiple way of processing entry in Tally.ERP9 Example: Company Imported goods from Tom & Jerry Limited Japan following Goods with respecting GST Rate Yama Bike 10 Nos @ Rs 50000 Each ($1000@50 Rs/$) GST@18% Honda Cycle 100 Nos @ Rs 2500 Each ($25 @ 50 Rs/$) GST @ 12% While importing Goods all the assessable value arrived by government include charges etc and custom duty which are not allowed for ITC and ultimately going to increase cost of Import and landed cost will increase Transactions that we need to follow in such case 1- Import of Goods (with IGST Ledger or without IGST ledger) 2- Raising Tax Liability 3- Expenses Incurred for import goods such as Transport, Agency Bill 4- Making Payment of Custom and IGST (Self or Via CHA) Item Nos INR Assessable Custom Taxable Rate IGST Yama 10 500000 520000 30000 550000 18% 99000 Honda 100 250000 260000 15000 275000 12% 33000
Page 74 5- Claiming Input Tax Credit on Import Master Configuration Needed Party Master: Party should be marked with Proper Country Name Purchase Ledger: Gateway of Tally Account Info Ledger Create Import Purchase GST Applicable Set Alter GST Details Ignore does not enable this option Save Import Purchase ledger Stock Item: Gateway of Tally Inventory Info Stock Item Create Create Following Ledger: These ledgers are must before passing entries 1-Custom Payable under Current Liabilities 2-Custom Duty: To Create Custom Duty Ledger first go to Gateway of Tally Account Info Groups Create Additional Cost of Import
Page 75 (Please select Appropriate by Value option there) Now create Custom Duty Ledger Custom Duty Ledger has been configured under New Group created as Addition Cost of Import. We did it because Custom duty cost will be added to landed cost of product and Input of it cannot be claim Transactions (Based on above example) ENTRY 1: Import of Goods Method 1: Where IGST ledgers have not been selected at entry Level
Page 76 Taxable value of each item derived by adding custom duty will be mentioned after selection of item in this below box `
Page 77 Customer Duty ledger has been added to landed cost and same time customer payable amount has been deducted to show the liability of amount payable to Government Method 2: Where IGST ledger has been selected at entry Level
Page 78 IGST Ledger has been debited in form of Input Tax Credit where as IGST Payable (under Current Liabilities same as custom payable) on Import denote as liability to pay along with custom payable to government ENTRY 2- Raising Tax Liability This entry need to be passed by only those who have booked Import Purchase according to method 1. Who have followed method 2 of Import Purchase no need to Pass this second entry Go to Journal Voucher Click on ALT + J GST Increase of Tax liability Import of Goods
Page 79 Tax on Import Ledger has been created under Current Assets ENTRY 3- Expenses Incurred for import goods such as Transport, Agency Bill Some time Importing goods we need Clear House agent and we use service of multiple agency e.g. Clear House Agent for goods clearance, Transported to deliver the goods to warehouse etc.
Page 80 They all raised Invoice for their Service. For each Invoice we need to book Purchase expense in our Books of Accounts Separately Example for above goods imported we used service of 1-SOHAT FREIGHT & FORWRDER for Goods Transport Rs 25000+ 5% GST (Payment of SOHAT Bill can be done by self or Clear House Agent pays to him) 2- DHL India Ltd our Clear House agent (CHA) clears goods from custom house and raised Invoice for Service Rs 30000+18% GST (Bill may Include only for Service or Bill May Include amount of Service, IGST, CUSTOM Duty, Transporter amount paid by CHA etc) 1-SOHAT FREIGHT & FORWARDE BILL (Payment to SOHAT may be paid separately or will be paid by CHA Clearing House Agent) 2- DHL India Ltd Invoice
Page 81 Case A: Only Service Bill Agency Service Ledger has been configured as below Case B: Where include amount of Service, IGST, CUSTOM Duty, Transporter amount paid by CHA etc
Page 82 Explanation of above entry 1-Along with Agency bill CUSTOM DUTY, IGST, Even Transport Amount of SOHAT Freight Forwarder amount has been collected in this single bill 2- Those person who have Passed Import Purchase entry according method 1 need to select IGST Ledger (IGST Ledger selected in ENTRY NO 2) 3- Reimbursement ledger has been configure under Indirect Exp without any GST configuration to adjust amount payable to Transporter or freight & Forwarder 4- In case of Reimbursement exp ledger has been selected please pass additional JV to knock of outstanding amount of Party
Page 83 ENTRY 4- Making Payment of Custom and IGST (Self or Via CHA) Tax Liability have been arise Custom + IGST will be paid either by directly or by Clearing House agent In case of amount has been paid by us then pass a simple payment Those who have pass Import Purchase entry via Method 1 need to select IGST Ledger instead of IGST Payable on Import (IGST ledger select in Entry No 2)
Page 84 In Case of amount of IGST and Custom Payable is Paid by Clearing House agent please check ENTRY NO 3 DHL Invoice Case B ENTRY 5: Claiming of Input Tax Credit This entry need to be passed by only those who have Passed Import Purchase entry according to method 1 Who have passed Import purchase according to method 2 “No need to Pass this entry?” Go to Journal Voucher Click on ALT+J GST Increase of Input Tax Credit Import of Goods
Page 85 o Credit Note/Debit Note against Purchase Invoice Copy from Debit Note PDF available on Tallyhelp.com o Purchase from Composite Dealer A Composite Dealer is who have turnover less than 1.5 Cr and deal on local basis (INTRASTATE).
Page 86 Buying something from Composite dealer will not attract GST as Composite dealer cannot raise Tax Invoice along with GST hence Input Tax Credit cannot be claimed in such cases Party Master: You need to define Party type in Party Master as Composite dealer Purchase Ledger: Local Purchase ledger can be used or You can create ledger Purchase from Composite Dealer with below configuration
Page 87 Stock Item: Configuration need to be done as below Transaction No need to select ledger as GST will not be charged by supplier o Purchase from SEZ: In case of goods purchase from SEZ Party it will be treated as Local Import. SEZ Supplier will not collect Tax we need to Pay Tax on Reverse Charge Basis
Page 88 (It has been found that few of SEZ Party collecting Tax along with Invoice where as few supplier ask us to pay Tax on RCM basis please check with updated notification in such case) Party Master: Please update Party Master with following details Purchase Ledger: Purchase from SEZ Stock Item:
Page 89 Transaction: Case A: Where Supplier Party will collect GST in Invoice Case A: Where Supplier Party will not collect GST in Invoice
Page 90 Pass a Journal Entry to raise Tax Liability and Input Tax Credit Pass a normal Journal entry without any class IGST ON SEZ PURCHASE:
Page 91 o Import of Service In case of any service received online from foreign client It is to be noted that this service is called Import Service and Tax on it need to be paid on RCM Basis. It means service receiver have to pay Tax. Party Master : Party should be of different Country Service Ledger : Transaction: ENTRY 1: Booking of Expenses
Page 92 ENTRY 2: Raising of Tax Liability Go to Journal Entry Click on ALT+ J GST Increase of Tax Liability Import of Services Tax on Import Ledger is being created as follow
Page 93 ENTRY 3: Claiming of Input Tax Credit Go to Journal Voucher Click on ALT + J GST Increase of Input Tax Credit Import of Service
Page 94 Adjustment and Tax Liability Payment: o OPENING BALANCE OF OLD TAXES SUCH AS VAT\EXCSIE\SERVICE TAX To claim opening balance of Eligible Credit available of old Tax regime can be claim and opening balance entry need to be Punch in Tally Excise & Service Tax: Any Credit available under Excise & Service Tax will be converted to CGST
Page 95 VAT: ITC of Vat will be converted to SGST or UTGST Passing Opening Balance Entry Go to Journal Voucher Click on ALT + J GST Opening Balance Opening balance entry will not hit your GSTR1, GSTR2 OR GSTR3B Report. Above entry will help you to see the balance in ledger and amount will be used to claim against as GST liability. Same amount will also be available on GSTIN Portal on E-Credit Ledger o ITC Adjustment: How to adjust Input Tax Credit Correct Sequence to adjust ITC (Input Tax Credit) ITC of IGST: IGST, CGST & SGST ITC of CGST: CGST, IGST ITC of SGST: SGST, IGST Generally there is tendency to create GST ledger according to Chart of accounts according to Organization need
Page 96 Example of Ledger Created by Tally Users Type 1: Simple CGST, SGST & IGST Type 2: [email protected]% , CGST@6%, [email protected]%, SGST@6% Type 2: Input & Output CGST, SGST & IGST Type 3: Input & Output CGST, SGST & IGST @ 2.5%, 6%, 9%, 14% Type 1: User who have followed method 1 Example: CGST 8000 CR / SGST 8000 CR / IGST 12000 DR Above example show Debit Balance under IGST that can be used again liability of CGST and SGST respectively Total Balance under IGST = 12000 Dr CGST = 8000 Cr SGST = 8000 Cr Entry should be CGST A\C_______Dr 8000 SGST A\C_______Dr 4000 To IGST 12000 Go to Journal Voucher Click on ALT + J Decrease of Tax liability Adjustment against credit
Page 97 Type 2/3/4: Who following these method need to pass 2 entries as below Let us understand with an example (Extract Part of Trial Balance) GST Dr Amount Cr Amount [email protected]% 1200 CGST@6% 1500 CGST@9% 1800 [email protected]% 1200 SGST@6% 1500 SGST@9% 1800 IGST@12% 2600 IGST@18% 1500 We need to first find out Net Balance of Each Type of Tax (GST) NET CGST (1200 DR +1500 DR -1800 CR) = 900 Dr NET SGST (1200 DR +1500 DR -1800 CR) = 900 Dr
Page 98 NET IGST (1500 DR - 2600 CR) = 1100 Cr Above working clearly shows that first we need to internally adjust same GST I.e. CGST to CGST, SGST to SGST and IGST to IGST Pass Journal Entry without using any Flag After above entry we can see NET balance under GST
Page 99 Now Pass Journal Entry using Flag Go to Journal Click ALT+J GST Decrease of Tax Liability adjustment against credit o Payment of Tax Liability Payment of Net Tax liability to be processed under Payment Voucher
Page 100 Go to Payment Voucher Click on ALT+S GST For the month Payment type Select Bank Select Duty Ledger Mention Chillan details in above screen. Payment details will not hit your any of Report but it will be shown in challan reconciliation and on GSTIN Portal