Tally For GST

Ask Soft Tech - Hyderabad , 901441112 / 9866039659
ASK SOFT TECH

Certified Tally Partner Sales & Implementation
9014411112 / 9866039659
Hyderabad
1. Start Using Tally.ERP 9 for GST Compliance

a. Activating GST for Your Company
b. Setting Up GST Rates
c. Creating GST Classification
d. Updating Stock Items and Stock Groups for GST Compliance
e. Updating a Service Ledger for GST Compliance
f. Updating Sales and Purchase Ledgers for GST Compliance
g. Updating Party GSTIN
h. Creating GST Ledgers
i. Creating Income and Expense Ledgers
j. Recording Sales and Printing Invoices
k. Recording a Tax Payment
l. Transferring Tax Credits of VAT, excise and service tax to GST
2.GSTR-1
a. Returns Summary
b. Particulars (Computation Details)
c. Summary of Exceptions
d. Table-wise GSTR-1
e. Status Reconciliation
f. HSN Summary
g. Exporting GSTR-1
h. Challan Reconciliation
3.FAQ’S
For Tally Sales & Service Contact @
Shravan Kumar Varma 9014411112 / 9866039659
Start Using Tally.ERP 9 for GST Compliance

To record a GST transaction, you have to activate GST and also update or create the required
ledgers.
To use Tally.ERP 9 for GST compliance,
Note: You can find the list of HSN codes/SAC on the website of the department of revenue.
3. Update or create ledgers as required.
Depending on the business requirements you will need to update the following ledgers, either
immediately or later.
● Update stock items, and stock groups to include GST details.
● Update sales and purchase ledgers to use in 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.

● Update party GSTIN/UIN for parties buying from you or selling items to you.
● Create GST tax ledgers to calculate taxes in transactions.
● Create income and expense ledgers to distribute the expenses and incomes against items
appropriately.
Your company is ready with all the masters.
● Recording Sales
● Recording Purchases
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.
If required, deactivate other taxes like VAT, as applicable. For this, open the corresponding tax
details screen and specify the Deactivate from date.
See also:
Set GST rate
Create GST Classification
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.
To set GST rates for stock groups and stock items
1. Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup.

Note: Brackets indicate that tax rates are captured from the company or stock group level.
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.
To specify further GST-related details, click F12: Configure.

In order to remove a tax rate, use the option Ctrl+C (Clear Rate). You can clear rate of multiple
items or groups by selecting them using Spacebar. You can also clear rate from items under a group
and automatically infer tax details recorded at group level to sub-groups and items using the option
F: Enforce Rate.
Creating GST Classification

You can create a GST classification in order to record the tax rate and other details for a category of
goods attracting a specific GST rate. When this classification is used in relevant masters and
transactions, the details of the goods or services will be automatically captured.
To create GST classification, enable the options Enable Goods and Services Tax (GST)? and
Set/alter GST details? in Statutory and Taxation features under F11: Features. In the
Company GST Details screen, enable the option Enable GST classification?.
To create GST classification
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications >
Create.
2. Select the Nature of Transaction that is applicable for your goods or services.
3. Enter the rates applicable for Integrated Tax and Cess. The rate entered for integrated tax will
be equally divided between central tax and state tax.
You can specify further GST details for the GST classification by clicking F12: Configure.
You can create multiple classifications and group goods or services in specific categories, for
example, GST at 18%, exempt goods, zero-rated goods, and so on.
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.
Updating a stock item
Updating a stock group
Updating a stock item
In case you need different tax rates for different items, modify the stock items to include the
applicable tax rates.
To update a stock item
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.

Taxability: Select Taxable for goods and services that are classified as taxable type of supply under
GST. Select Exempt, if the type of supply is exempted from tax under GST, or select Nil Rated, if
the tax rate applicable to the type of supply is 0% under GST.
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.
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.
The type of supply selected for a stock item is applicable only for that item. If multiple items with
varying type of supply configuration are selected in an item, the type of supply configured for one
item is not inferred for another.
Updating a stock group
In case you need the same tax rates for the items in a stock group, modify the group to include tax
applicability and rates.
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.
Non-GST Goods
Some goods such as petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation
turbine fuel and liquor fit for human consumption, are not covered under GST and hence are
classified as non-GST goods. In Tally.ERP 9 items can be set as non-GST goods.
To set an item as non-GST good
1. In the GST Details screen of the stock item or stock group, click F12: Configure.

2. Enable the option Set type of goods?
3. Press Ctrl+A to accept.
4. In the GST Details screen, set the option Is non-GST goods? to Yes to configure the
item/group as non-gst.
6. Save the item or group master.
Updating a Service Ledger for GST

Compliance
To update taxes and other GST details for your service items, you need to modify your service
ledgers.
To update service ledgers
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > select the ledger.
2. Is GST Applicable - Applicable.

3. Set/alter GST Details - Yes, specify the details in the GST Details screen, and save.
Alternatively, you can use a classification to use the tax details defined in the classification.
4. Type of supply - Services.
You can use this ledger to bill the services rendered by your business, in Accounting Inv
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.
The HSN details, tax rate and type of supply selected in sales and purchase ledger will be applicable
to all items or services selected in a transaction where these ledgers are applied. The GST details and
type of supply configuration in the stock items will be overridden in the transaction with the details
configured in the sales/purchase ledger.
Updating a Sales Ledger
Updating a Purchase Ledger
Updating a Sales Ledger
To update a sales ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > select the sales ledger.
2. Is GST Applicable - Applicable.
3. Set/alter GST Details - Yes, specify the details in the GST Details screen, and save.
Alternatively, you can use a classification to use the tax details defined in the classification.

Taxability: Select Taxable, if sales ledger is used for supply of goods and services that are classified
as taxable under GST. Select Exempt, if it is used for sale of type of supply that is exempted from
tax under GST, or select Nil Rated, if it is used for sale of goods or services that attract 0% tax rate
under GST.
4. Select the Type of supply. By default the type of supply is set to Goods.
Updating a Purchase Ledger
To create a purchase ledger
● 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.
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.
Update Party GSTIN
Import Party GSTIN
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.
Import Party GSTIN
The Import Party GSTIN add-on helps you update GSTIN details of all parties at once from
Microsoft Excel. It is very useful if you have the GSTIN information of all parties outside
Tally.ERP 9 and want to import the information to update the party ledgers in Tally.ERP 9.
Note: You need to export existing party information to MS Excel using Update Party GSTIN, and
use this MS Excel file to fill in the GSTINs that you want to import.
To install the Import Party GSTIN add-on
1. Download the Import Party GSTIN add-on from the Add-ons section here.
2. In Tally.ERP 9, click F12: Configure > Product & Features > F4: Manage Local TDLs.
3. In the TDL Configuration screen, set the option Load TDL files on startup to Yes.
4. Specify the name of the add-on with the folder path containing the add-on in the field List of
TDL files to preload on startup.
5. Press Enter to save.
Import Party GSTIN appears under GST Reports.

To import party GSTIN details
1. Go to Display > Statutory Reports > GST > Update Party GSTIN.
2. Select All Items in the Name of Group and Name of Ledger fields in Select Group screen
and press Enter. The Update Party GSTIN/UIN screen lists all parties without a GSTIN.
3. Click Export to export the information in excel format.
4. Open the exported file, specify GSTIN details for the parties, and save the file.
5. In Tally.ERP 9, go to Display > Statutory Reports > GST > Import Party GSTIN.
6. Specify the name of the MS Excel file to be imported with the path in the field Name of the file
to be imported (Excel).
7. Specify the name of the sheet containing information in MS Excel file in the field Sheet name.

8. Press Enter to import.
When the import is completed, the MS Excel file opens and displays the message Data imported
successfully.
Note: Ensure the party names are not altered in the MS Excel file exported from Tally.ERP 9. Also,
the name of Country, State and Registration Type specified in the MS Excel file must match the
spellings given in Tally.ERP 9.
To correct errors in the imported data
1. Open the MS Excel file and check for a sheet called Errors. If this sheet is there, it means that
some data was incorrect for some parties and has not been imported into Tally.ERP 9.
2. Check and make necessary corrections in the Errors sheet. Save the file.
3. Import the file again, and specify the sheet name as Errors. The corrected information is
imported this time.

See Also
Tax Rate Setup
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.
To create central tax 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 Central Tax as the Tax type.
Similarly, you can create ledgers for state tax, integrated tax, and cess by selecting the relevant Tax
type under GST.
Creating Income and Expense Ledgers 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
Expenses, Indirect Expenses, Direct Incomes or Indirect Incomes.
To create an expense or income ledger

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.
Note: If the option Appropriate to is set to Services or Both, the field Method of Calculation is
skipped and the calculation is made based on the value entered for each stock item or service in the
invoice. For more information, refer to Using the option Allow method of appropriation.
Similarly, you can create income ledgers to record direct and indirect incomes.
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.
In Tally.ERP 9, you can record sales in the item invoice mode or in the accounting invoice mode.
Local sales
Printed invoice format
Interstate sales
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 in the item invoice mode
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
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.
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.

Interstate 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.

Sales in the Accounting Invoice Mode
When you maintain only accounting transactions (but not inventory of your goods), or when your
company deals with services, you can use the accounting invoice mode for recording your local and
interstate sales.
To record GST sales in the accounting invoice mode
2. Click I: Accounting Invoice.

3. Select the required goods/service ledgers, and specify the quantities and rates. Alternatively, press
Alt+C to create the ledgers.
4. Select the central and state tax ledgers for local sales and the integrated tax ledger for interstate
sales.
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. You have the choice of using item invoice or accounting
invoice according to your business requirements.
Recording Purchases 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.
Local purchase
Interstate purchase
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
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.
up.

Interstate Purchase
The purchase of goods or services from a supplier from another state attracts integrated tax.
To record an interstate purchase
● Follow the steps used for recording a local purchase transaction, with the following changes:
o Select the purchase ledger applicable for interstate purchases.
o Select the integrated tax ledger.

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

You can record payments such as, interest, late fee, penalty, and others made to the GST
department using a tax payment voucher. Interest, late fee, penalty and others are to be paid
separately for central tax and state tax.
To record a tax payment voucher
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment.

2. Click S: Stat Payment and enter the required details.
Payment Type: Set the type of payment as Regular.
3. Account: Select the bank from which the payment will be made.
4. Select the central and state tax ledgers. If you have to pay interest, penalty, late fee or other dues,
select the ledgers to make the payment. created to account for these dues. Ensure these ledgers are
grouped under Direct Expenses/Indirect Expenses/Current Liabilities.
5. Select the type of payment to be made to the GST department.

6. Provide GST details: Enable this option to enter the bank details.
If the bank details are not available, you can enter them later in the Challan Reconciliation report.
7. In the Bank Allocations screen, select the ledgers, enter the amount and provide the payment
details.
Similarly, you can record other tax payments to be made to the GST department.
Transferring Tax Credits of VAT, Excise, and

Service Tax to GST
You can record a journal voucher to transfer the closing balance of tax credits of VAT, additional
tax, cess, surcharge, CENVAT, service tax and krishi kalyan cess 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-1 or 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.
Accounting for Inward Supply from

Unregistered Dealers (GST - Purchases)
You can account for taxable purchases from unregistered dealers (URD), purchases against advance
paid to unregistered dealers, cancellation of purchase after advance payment to unregistered dealers,
and purchase returns under reverse charge.
To record purchases from an unregistered dealer, you need to update your party ledgers and create a
ledger for unregistered purchases.
Purchases from an unregistered dealer
Inward supply > Raise tax liability > Pay tax and file returns
Purchases from an unregistered dealer against advance payment
Same month: Advance payments > Inward supply > Raise tax liability > Pay tax and file returns
Different months: Advance payments > Raise tax liability > Pay tax and file returns > Inward
supply in another month > Reverse the tax liability > File returns in the subsequent month
Cancellation of advance payment under reverse charge
Same month: Exclude the advance payment voucher from the GSTR-2
Different month: Record a journal voucher to reverse the tax liability to the extent to which the
transaction is cancelled
Purchase returns under reverse charge
Same month before raising liability for complete invoice value: Purchase invoice > Cancel the
invoice (press Ctrl+X to cancel) > File returns
Same month after raising liability: Purchase invoice > Raise tax liability and claim credit > Record a
debit note > Reverse the tax liability and tax credit to the extent of purchase returns > File returns
Different month: Record a debit note to the extent of purchase returns > Reverse the tax liability
and tax credit to the extent of purchase returns > File returns
Updating your party ledgers
You need to identify the party as an unregistered dealer.
To update your party ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > select the ledger.

2. Set/alter GST details? - Yes.
3. In GST Details screen, Registration Type - Unregistered.
4. Press Ctrl+A to save.
Creating a ledger for purchases from unregistered dealer
This ledger is to account for the purchases transactions from unregistered dealers.
To create a ledger for purchases from unregistered dealer

2. Under - Purchase Accounts.
3. Is GST Applicable? - Applicable.
o Nature of transaction - Purchase from Unregistered Dealer.
o Taxability - Taxable.
o Is reverse charge applicable? - Yes. Press F12: Configure and set Enable reverse charge
calculation? to Yes.
o Set the rate details.

In the stock item master attracting reverse charge, 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).
Recording a purchase from unregistered dealer
Create a new bill reference when you are purchasing the goods from an unregistered dealer and then
making a payment. If you have made an advance payment, then you can adjust it against the
purchase invoice.
To record a purchase entry
1. Go to Gateway of Tally > Accounting Vouchers > Accounting Vouchers > F9: Purchase.
2. Enter the details as required.
Link the bill reference of the payment voucher (by selecting Agst Ref in the Bill-wise Details
screen) to the purchase invoice, if you have made an advance payment.
3. Click A: Tax Analysis > F1: Detailed to view the detailed Tax Analysis report that displays the
reverse charge amount.

4. Press Escape (Esc) to go back to the purchase voucher.
Recording an advance payment to unregistered dealer
When you make an advance payment to an unregistered dealer for goods due to be received on a
future date, you can record an advance payment voucher.
To record an advance 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. In Account, select the bank from which the payment will be made.
4. Select the party ledger predefined as unregistered dealer, and enter the details in the Advance
Payment Details screen.
Note: To categorise and display the stock item or ledgers attracting reverse charge in the Advance
Payment Details screen, 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).
The tax type appears as integrated tax or central tax and state tax, based on the state selected for the
party ledger.
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.
Recording a journal voucher to raise liability for reverse charge on advance payments
When an advance payment is made to a unregistered dealer, or purchases are made from an
unregistered dealer, the liability due under reverse charge gets captured in the GSTR-2 report.
When you purchase from a unregistered dealer, you have to raise the tax liability in your books and
then pay it to the department. You can record a journal voucher to raise this liability under reverse
charge.
To view the reverse charge amount in GSTR-2

● Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2.
To record a journal voucher from GSTR-2 for advance payment
1. Click J: Stat Adjustment in GSTR-2 report.
2. Select the options as shown below.
3. Click F2: Date and change the voucher date as required. You can record a journal voucher to
raise the liability for each advance payment, or at the end of the month, record a voucher to raise
liability for all the advance payments made, against a particular party.
4. Debit the ledgers grouped under Current Assets and credit the GST ledgers.

Recording a journal voucher to reverse the tax liability raised for purchases from an
unregistered dealer to claim tax credit
When you have made the advance payment in previous period and created the purchase invoice in
the current period, you can view the transaction details in GSTR-2 report.
You can claim the tax paid on purchases from unregistered dealer as tax credit by recording a journal
voucher, and can view the tax credit claimed in GSTR-2.
To view the tax liability under reverse charge in GSTR-2
1. Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2.
The purchase invoice values with the tax liability details

2. Click V: Default View and F1: Detailed to view the purchase invoice recorded in the current
period adjusted against the advance payment of the previous period.
Claim tax credit when the advance amount paid matches with the purchase value
To claim tax credit on the purchases from unregistered dealer

4. Debit the GST ledgers and enter the amount claimed as credit on purchase invoices recorded
against unregistered dealers.
5. Credit the ledger grouped under Current Assets.
Claim tax credit on the purchases from unregistered dealer when the purchase value exceeds the
advance amount paid
Example: Consider the transactions recorded in the following sequence.
● On 5th July, an advance payment of 1,00,000 is made to an unregistered dealer.
● To account for the GST liability, a journal voucher is recorded by crediting the GST ledgers, and
debiting the tax on advance (Current Liabilities) ledger for 18,000.

● On 2nd August, a purchase invoice is recorded for 2,90,000 (attracting GST of 52,200) by
adjusting the advance amount of 1,00,000. The tax liability on the balance amount of 1,90,000
(purchase value 2,90,000 - advance amount 1,00,000) is 34,200.
● Now to raise the tax liability of 34,200 and claim tax credit for 52,200 record a journal voucher.
To record a journal voucher to raise a liability and account for tax credit in the same voucher
4. Debit the GST ledgers and enter the total tax credit available on the purchase invoice.
5. Credit the GST ledgers and enter the amount of tax liability to be raised on the purchase value
after deducting the advance payment.
6. Credit the tax on advance ledger grouped under Current Assets.

To view the tax credit claimed on reverse charge liability in GSTR-2
2. Click V: Default View and F1: Detailed to view the journal voucher recorded to reverse the tax
liability raised on advance payments.

Accounting for cancellation of purchases after advance payments under reverse
charge
If you cancel a purchase order after advance payment to an unregistered dealer, you can reverse the
liability on cancellation of purchase.
If the order cancellation is done in the same month, you need to exclude the advance payment
voucher from GSTR-2. Otherwise, reverse the liability on cancellation.
To exclude an advance payment voucher from GSTR-2
2. Select Included in returns and press Enter.
3. Select Advance Payment 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?.
To reverse the liability on cancellation of purchase
1. Click J: Stat Adjustment in GSTR-2 report or from the Accounting Vouchers > F7: Journal.
3. Debit the GST ledgers and credit the ledgers grouped under Current Assets.

Purchase Returns under reverse charge
Consider a purchase invoice recorded for purchase from unregistered dealer as shown below:
The tax liability gets calculated and displayed in the Tax Analysis screen (click A: Tax Analysis in
the above purchase invoice) as shown below:

Record a journal voucher, to raise the liability and claim credit on the tax calculated in the Tax
Analysis screen of the above purchase invoice, as shown below:
When the purchase returns happens either partially or fully after filing returns, record a debit note to
reverse the transaction to the extent of goods returned.
To record a debit note
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9. If the purchase returns happens
partially, record the debit note to the extent it is reversed as shown below:

the above debit note) as shown below:
Record a journal voucher to reverse the liability and tax credit claimed in the previous month to the
extent it is returned.
To record a journal voucher to reverse the tax liability and input tax credit

3. Debit and credit the GST ledgers with the same tax values as shown below:
Accounting for Inward Supply of Services

Under Reverse Charge (GST - Purchase)
You can account for purchase of taxable services classified as reverse charge, purchases against
advance paid towards these services, cancellation of purchase after the advance payment is made,
and purchase returns under reverse charge.
To record purchase of services under reverse charge, you need to update your purchase ledger.
Purchase of taxable services under reverse charge
Inward supply > Raise tax liability > Pay tax and file returns

Purchase of services against advance payment under reverse charge
Same month: Advance payments > Inward supply > Raise tax liability > Pay tax and file returns
Different months: Advance payments > Raise tax liability > Pay tax and file returns > Inward
supply in another month > Reverse the tax liability > File returns in the subsequent month
Cancellation of advance payment under reverse charge
Same month: Exclude the advance payment voucher from the GSTR-2
Different month: Record a journal voucher to reverse the tax liability to the extent to which the
transaction is cancelled
Purchase returns under reverse charge
Same month before raising liability for complete invoice value: Purchase invoice > Cancel the
invoice (press Ctrl+X to cancel) > File returns
Same month after raising liability: Purchase invoice > Raise tax liability and claim credit > Record a
debit note > Reverse the tax liability and tax credit > File returns
Different month: Record a debit note > Reverse the tax liability and tax credit > File returns
This ledger is to account for the purchase of services under reverse charge.
To create a ledger for purchase of services under reverse charge

2. Under - Purchase Accounts.
3. Is GST Applicable? - Applicable.
o Nature of transaction - Purchase Taxable.
o Taxability - Taxable.

o Is reverse charge applicable? - Yes. Press F12: Configure and set Enable reverse charge
calculation? to Yes.
o Set the rate details.
Recording a purchase of taxable service under reverse charge
Create a new bill reference when you are purchasing taxable services and then making a payment. If
you have made an advance payment, then you can adjust it against the purchase invoice.
To record a purchase entry
1. Go to Gateway of Tally > Accounting Vouchers > Accounting Vouchers > F9: Purchase.
2. Enter the details as required.
Link the bill reference of the payment voucher (by selecting Agst Ref in the Bill-wise Details
screen) to the purchase invoice, if you have made an advance payment.
Recording an advance payment for purchase of taxable services under reverse charge
When you make an advance payment for a taxable service under reverse charge, due to be received
on a future date, you can record an advance payment voucher.

To record an advance 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
3. In 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 ledgers attracting reverse charge in the Advance Payment
Details screen, 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).
The tax type appears as integrated tax or central tax and state tax, based on the state selected for the
party ledger.

5. Press Ctrl+A to save the Advance Payment Details screen.
screen.
7. Enter the details in the Bank Allocations screen.
Recording a journal voucher to raise liability for reverse charge
When an advance payment is made for a service under reverse charge, the liability gets captured in
the GSTR-2 report.
When you purchase classified as reverse charge, you have to raise the tax liability in your books and
then pay it to the department. You can record a journal voucher to raise this liability under reverse
charge.
To view the reverse charge amount in GSTR-2
● Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2.
To record a journal voucher from GSTR-2
1. Click J: Stat Adjustment in GSTR-2 report.

3. Click F2: Date and change the voucher date as required. You can record a journal voucher to
raise the liability for each advance payment, or at the end of the month, record a voucher to raise
liability for all the advance payments made, against a particular party.
4. Debit the ledgers grouped under Current Assets and credit the GST ledgers.
Recording a journal voucher to reverse the tax liability raised for purchase of services
under reverse charge to claim tax credit
When you have made the advance payment in previous period and created the purchase invoice in
the current period, you can view the transaction details in GSTR-2 report.
You can claim the tax paid on purchase of services under reverse charge as tax credit by recording a
journal voucher, and can view the tax credit claimed in GSTR-2.
To view the tax liability under reverse charge in GSTR-2

The purchase invoice values with the tax liability details.
2. Click V: Default View and F1: Detailed to view the purchase invoice recorded in the current
period adjusted against the advance payment of the previous period.
Claim tax credit when the advance amount paid matches with the purchase value
To claim tax credit on the purchase of services under reverse charge

4. Debit the GST ledgers and enter the amount claimed as credit on purchase invoices recorded for
services under reverse charge.
Claim tax credit on the purchase of services under reverse charge when the purchase value exceeds
the advance amount paid
Example: Consider the transactions recorded in the following sequence.
● On 5th July, an advance payment of 1,00,000 is made for purchase of service under reverse
charge.

● To account for the GST liability, a journal voucher is recorded by crediting the GST ledgers, and
debiting the tax on advance (Current Liabilities) ledger for 18,000.
● On 2nd August, a purchase invoice is recorded for 2,90,000 (attracting GST of 52,200) by
adjusting the advance amount of 1,00,000. The tax liability on the balance amount of 1,90,000
(purchase value 2,90,000 - advance amount 1,00,000) is 34,200.
● Now to raise the tax liability of 34,200 and claim tax credit for 52,200 record a journal voucher.
To record a journal voucher to raise a liability and account for tax credit in the same voucher
4. Debit the GST ledgers and enter the total tax credit available on the purchase invoice.
5. Credit the GST ledgers and enter the amount of tax liability to be raised on the purchase value
after deducting the advance payment.
6. Credit the tax on advance ledger grouped under Current Assets.

To view the tax credit claimed on reverse charge liability in GSTR-2
2. Click V: Default View and F1: Detailed to view the journal voucher recorded to reverse the tax
liability raised on advance payments.

Accounting for cancellation of purchases after advance payments under reverse
charge
If you cancel a purchase order after advance payment made for a service under reverse charge, you
can reverse the liability on cancellation of purchase.
If the order cancellation is done in the same month, you need to exclude the advance payment
voucher from GSTR-2. Otherwise, reverse the liability on cancellation.
To exclude an advance payment voucher from GSTR-2
3. Select Advance Payment and press Enter.
To reverse the liability on cancellation of purchase
3. Debit the GST ledgers and credit the ledgers grouped under Current Assets.

Purchase Returns under reverse charge
Consider a purchase invoice recorded for services as shown below:
the above purchase invoice) as shown below:

Record a journal voucher to raise the liability and claim credit on the tax calculated in the Tax
Analysis screen of the above purchase invoice, as shown below:
When the purchase returns happens, record a debit note to reverse the transaction.
To record a debit note
● Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9.

the above debit note) as shown below:
Record a journal voucher to reverse the liability and tax credit claimed.
To record a journal voucher to reverse the tax liability and input tax credit

3. Debit and credit the GST ledgers with the same tax values as shown below:
See also
Accounting for Inward Supply from Unregistered Dealers (GST - Purchases)
Recording GST Advance Receipts from

Customers
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.
Advance receipt for orders completed
Same month: Advance receipt > Outward supply > Pay tax
Different month: Advance receipt > Raise tax liability > Pay tax and generate returns > Outward
supply in the next month > Reverse tax liability > File returns for the month
Advance receipt for orders cancelled
Same month: Advance receipt > Exclude the advance receipt from GSTR-1 > File returns
Different month: Advance receipt > Raise tax liability > Pay tax for the liability raised > File return
> Reverse the tax liability in the next month > Receive the advance amount > File returns
Advance Receipt exclusive of tax adjusted against Sales Invoice in the same month
Advance Receipt voucher exclusive of tax
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 in GSTR-1 report.
Note: Receipt vouchers recorded without clicking V: Advance Receipt will not have GST
3. Account: Select the bank to which the payment will be made.
4. Select the party ledger enabled for bill-wise details.
5. 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 Tax, State Tax and Cess is displayed.
6. 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 Tax,
State 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.
7. Press Ctrl+A to accept the Advance Receipt Details screen and return to receipt voucher.
screen.
9. If the amount is received through bank, select the Transaction Type and enter the required
details in the Bank Allocations screen.
11. 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.
Sales invoice linked to an advance receipt voucher
When the sales invoice is recorded in the same month, the receipt voucher has to be linked to it by
selecting the Type of Ref as Agst Ref in the Bill-wise Details screen of 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
categorised as No GST Implications in the Summary of Excluded Vouchers report.
Advance receipt and sales invoice recorded in different months

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

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.
Sales invoice against advance receipt of previous month
Record a sales invoice in the month of August as shown below:

Advance Receipt inclusive of tax
You can record advance receipt inclusive of tax in a receipt voucher.
1. In the receipt voucher, click V: Advance Receipt, select the bank/cash account, and the party
ledger enabled for bill-wise details.

2. In the Advance Receipt Details screen, enter the Amount (Incl of Tax). The Amount
available for setoff against sales invoice and the taxes included in the advance amount appears as
shown below:
3. In the advance receipt voucher, select the GST ledgers. The tax amount appears automatically.
4. Accept the voucher.
This voucher can be linked to sales invoice by adjusting only 55000 in the Bill-wise Details screen.
Based on the amount offset against sales invoice, you need to reverse the tax deducted in the receipt
voucher by selecting the GST ledgers using a journal voucher.
Journal voucher to reverse the liability
After recording the sales invoice, you need to reverse:

● The tax liability raised in journal voucher for the advance receipt of the previous month.
● The tax liability raised in the advance receipt voucher of the current/previous month.
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:
Reversal of GST on account of cancellation of advance receipt

Cancellation of transaction in the same month
If an advance receipt voucher is recorded,a journal voucher is recorded to raise the tax liability, and
then the transaction is cancelled:
● Exclude the advance receipt voucher from the GSTR-1 report.
● Record a journal voucher to reverse the tax liability to the extent to which the transaction is
cancelled.
Cancellation of transaction in the next tax period
If an advance receipt voucher is recorded, a journal voucher is recorded to raise liability, and then
the transaction is cancelled in the next tax period:

● Record a journal voucher to reverse the tax liability to the extent to which the transaction is
cancelled.
To exclude a transaction
3. Select Advance Receipt and press Enter.
To reverse the liability on cancellation of a transaction
2. Select the options as shown below:
3. Debit the GST ledgers and credit the ledger grouped under Current Assets as shown below:

GST Sales - Nil Rated, Exempt, SEZ,

Deemed Export, and Consumer Sales
Once you activate GST in your company, you can record a variety of sales transactions such as nil-
rated, exempt sales, SEZ sales, deemed export, and so on using a sales voucher.
Nil-rated sales
Exempt sales
SEZ sales
Deemed export
Sales to consumer (B2C large and small invoices)
Selecting the sales ledger in a sales transaction
While recording any type of sales transaction, you can choose either of the following methods:

● Method 1: For a specific type of sales transaction, you can create or update the sales ledger with
the relevant Nature of transaction. Now select this sales ledger while recording the sales
transaction.
● Method 2: You can select the common sales ledger during the sales transaction, press F12 and
enable the option Allow modification of tax details for GST?, and select the
Classification/Nature.
Nil-rated Sales
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.
● 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.
Exempt Sales
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.
● Select the applicable Sales ledger.

SEZ Sales
The sale of goods and services to a party in an SEZ can be recorded using a sales vouchers. In an
SEZ sales transaction, taxes are applicable based on the type of sale:
● Taxable SEZ sale: In SEZ sales, integrated tax is applicable for both local and interstate parties.
● Exempt SEZ sale: No tax is applicable.
● SEZ sale under LUT/bond: No tax is applicable. SEZ sales under LUT/bond are allowed when
you have signed up a letter of undertaking with the department for the sale of goods without the
payment of duty.
To provide details of the LUT/bond, enable the options Enable Goods and Services Tax (GST)?
and Set/alter GST details? in Statutory and Taxation features. In the Company GST Details
screen, enable the option Provide LUT/Bond details?, and enter the details in the LUT/Bond
Details screen.
To record SEZ sales

● Select the applicable Sales ledger. For example, Sales - SEZ.
Provide GST details: Enable this option if you want to enter additional details regarding the export
transaction.
Deemed Export
Deemed exports are defined as transactions in which the supply and manufacture of goods takes
place within India. Essentially, deemed exports refer to the supply of goods to end-exporters.
For example, if a two-wheeler spare parts manufacturer supplies rear-view mirrors to a motorcycle
manufacturer and exporter, then the sale of the rear-view mirrors would be considered as deemed
exports.
The deemed export of goods and services can be recorded using a sales vouchers.
Taxes are applicable based on the type of deemed export:

● Taxable deemed export: In SEZ sales, integrated tax is applicable for both local and interstate
parties.
● Exempt deemed export: No tax is applicable.
To record deemed export
● Select the applicable Sales ledger. For example, Sales - Deemed Export.
Sales to consumers - Taxable and Exempt
You can record sales to consumers (end users of your goods or services) and unregistered dealers,
using a sales invoice.
Depending on the transaction value and the location of the party, the sales invoice will be captured
in different tables in GSTR-1 returns.
● B2C (Large) Invoices: Captures interstate sales transactions where the invoice value is more
than Rs. 2.5 lakh.
The following images show how large invoices are captured in GSTR-1 for an interstate party:

● B2C (Small) Invoices: In GSTR-1, this table captures:
o Local sales transaction: Irrespective of the invoice value.
o Interstate sales transactions: where the total invoice value is less than Rs. 2.5 lakh.
The following images show how small invoices are captured in GSTR-1:

Recording Sales of Mixed Supply Under GST

You can record the sales of a mixed supply using a sales invoice. For this, create a new stock item to
account for the bundle of items. The tax of the highest-rated item in the bundle is applicable for this
bundled unit.
To record the sales of a mixed supply
2. Select the applicable tax ledgers (central and state/union territory taxes for local supply,
integrated tax for interstate supply).
See also
Recording Sales Returns under GST

You can record sales returns (both local and interstate) against an earlier sales transaction using a
credit note.
To record sales return using a credit note
1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8.

2. In Original invoice no., enter the invoice number of the original sales transaction against which
you are recording the current sales return.
3. In Party’s A/c Name, select the party against which the original sales was made.
4. Select the central tax and state tax ledgers.
up.

Similarly, you can record sales returns against an interstate sales transaction by selecting the relevant
party, sales ledger, and integrated tax ledger.
Recording Purchase Returns in GST

You can record purchase returns (both local and interstate) against an earlier purchase transaction
using a debit note.
To record purchase return using a debit note
1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9.

2. Original invoice no: Enter the invoice number of the original purchase transaction against
which you are recording the purchase return.
3. In Party’s A/c Name, select the party from which the original purchase was made.
5. Provide GST details: Enable this option if you want to enter additional details about the
purchase return.
Similarly, you can record purchase returns against an interstate purchase by selecting the relevant
party, purchase ledger, and integrated tax ledger.
Import of Services - GST

You can account for import of services, raise liability on the tax payable (reverse charge), and claim
tax credit.
Record inward supply of services as imports

Raise tax liability
Claim tax credit on the liability of imports
Recording inward supply of services as imports
You can record an inward supply of services that are imported, in a purchase invoice.
To record a purchase invoice
3. In the field Party's A/c Name, select the supplier ledger predefined with Country other than
India.
4. Select the service grouped under Purchase Accounts, and enter the amount.
Claiming tax credit on the liability of imports
When you import services, you have to raise the tax liability in your books and then pay it to the
department. You can record a journal voucher to raise this liability under reverse charge.

You can claim the tax liability paid on imports as tax credit by recording a journal voucher. The
purchase invoice details with the tax credit claimed on the purchase is shown in GSTR-2.
To record a journal voucher to raise tax liability
4. Debit the ledger grouped under Current Assets and credit the integrated tax ledger.
To claim tax credit on liability of imports

1. In the journal voucher, click J: Stat Adjustment and set the options as shown below:
2. Debit the integrated tax ledger and credit the ledger grouped under Current Assets.
To view the transactions in GSTR-2 report
2. Click V: Default View and F1: Detailed, to view the purchase invoice details with the tax credit
claimed on the purchase.

Import of Services - GST

You can account for import of services, raise liability on the tax payable (reverse charge), and claim
tax credit.
Record inward supply of services as imports
Raise tax liability
Claim tax credit on the liability of imports
Recording inward supply of services as imports
You can record an inward supply of services that are imported, in a purchase invoice.
To record a purchase invoice

3. In the field Party's A/c Name, select the supplier ledger predefined with Country other than
India.
4. Select the service grouped under Purchase Accounts, and enter the amount.
Claiming tax credit on the liability of imports
When you import services, you have to raise the tax liability in your books and then pay it to the
department. You can record a journal voucher to raise this liability under reverse charge.
You can claim the tax liability paid on imports as tax credit by recording a journal voucher. The
purchase invoice details with the tax credit claimed on the purchase is shown in GSTR-2.
To record a journal voucher to raise tax liability

4. Debit the ledger grouped under Current Assets and credit the integrated tax ledger.
To claim tax credit on liability of imports
1. In the journal voucher, click J: Stat Adjustment and set the options as shown below:

2. Debit the integrated tax ledger and credit the ledger grouped under Current Assets.
To view the transactions in GSTR-2 report
2. Click V: Default View and F1: Detailed, to view the purchase invoice details with the tax credit
claimed on the purchase.

Recording Export Sales under GST

The export of goods can be recorded using a sales vouchers.
In an export sales transaction:
● Taxes are applicable based on the type of export:
o Taxable export: Integrated tax is applicable.
o Exempt export: No tax is applicable.
o Export under LUT/bond: No tax is applicable. This type of export is applicable when you have
signed up a letter of undertaking with the department for the export of goods without the payment
of duty.
To provide details of the LUT/bond, enable the options Enable Goods and Services Tax (GST)?
and Set/alter GST details? in Statutory and Taxation features. In the Company GST Details
screen that opens, enable the option Provide LUT/Bond details?, and enter the details in the
LUT/Bond Details screen.
To record export sales transaction

2. In Party A/c name, select the customer ledger or the cash ledger.
3. Select the sales ledger applicable. You can create separate sales ledgers for taxable exports,
exempt exports, and exports under LUT/bond.
4. Select the integrated tax ledger.
5. Provide GST details: Enable this option if you want to enter additional details regarding the
export transaction.
Depending on the type of the export, you can record a sales transaction with the applicable GST
rates.
Recording Journal Vouchers for Adjustments

Against Tax Credit under GST
The tax credits of central tax, integrated tax and state tax can be used to set-off the liability of central
tax, state tax/UT tax and integrated tax in the order specified under GST.

The order in which tax credit can be offset is given below:
Input Tax Credit Set-off against the Liability

Central tax Central tax and integrated tax (in that order).
Integrated tax Integrated tax, central tax, state tax/UT tax (in that order).
State tax/UT tax State tax/UT tax and integrated tax (in that order).
To record a journal voucher for cross utilisation of tax credits
4. Press Enter to save and return to the journal voucher.
5. In the journal voucher, debit and credit the ledgers as per the scenarios mentioned below:
Scenario Debit Ledger Credit Ledger
● Debit the central

tax ledger
Credit the central tax ledger to set-
Utilisation of central tax credit, when
off the payable amount against the
only central tax credit is available. ● Enter the amount
available credit.
to the extent of credit
available.

● Credit the central tax ledger,

● Debit the central
and enter the total amount
tax ledger.
Utilisation of central tax credit, when payable.
central tax and integrated tax credits
● Enter the amount
are available. ● Credit the integrated tax ledger
if the tax credit remains after it is
available.
set-off against central tax dues.
● Debit the state tax

ledger.
Credit the state tax ledger to set-
Utilisation of state tax credit, when
off the payable amount against the
only state tax credit is available. ● Enter the amount
available credit.
available.
● Credit the state tax ledger, and

● Debit the state tax
enter the total amount payable.
ledger.
Utilisation of state tax credit, when
state tax and integrated tax credits ● Credit the integrated tax
are available. ledger if the tax credit remains
after it is set-off against state tax
available.
dues.
● Debit the
integrated tax ledger.
Utilisation of integrated tax credit, Credit the integrated tax ledger to
when only integrated tax credit is set-off the payable amount against
available. the available credit.
available.
● Credit the integrated tax ledger,

● Debit the
Utilisation of integrated tax credit, payable.
when integrated tax and central tax
credits are available. ● Credit the central tax ledger, if
the tax credit remains after it is
available.
set-off against integrated tax dues.

● Credit the integrated tax ledger,

payable.
● Debit the
Utilisation of integrated tax credit, ● Credit the central tax ledger, if
when integrated tax, central tax and the tax credit remains after it is
state tax/UT tax credits are available. set-off against integrated tax dues.
available.
● Credit the state tax ledger, if
the tax credit remains after it is
set-off against central tax dues.
● Debit the cess

ledger.
Credit the cess ledger to set-off
Utilisation of cess credit, when only
the payable amount against the
cess credit is available. ● Enter the amount
available credit.
available.
Recording a Journal Voucher for TDS

Adjustment in GST
The government or government agency can deduct TDS on the goods and services received. The
deductee, who has supplied the goods or rendered the service, can claim the TDS amount as tax
credit. You can record a journal voucher to adjust the TDS amount.
To record a journal voucher for TDS adjustment

5. Debit the integrated tax/central tax/state tax/UT tax/cess ledger and enter the amount that can
be claimed as credit.
7. Press Ctrl+A to accept the journal voucher.
Recording a Journal Voucher for TCS

Adjustment in GST
An e-commerce operator can deduct TCS on the goods and services received. The deductee, who
has supplied the goods or rendered the service, can claim the TCS amount as tax credit.
To record a journal voucher for TCS adjustment

5. Debit the integrated tax, central tax, state tax/UT tax, cess ledger and enter the amount that can
be claimed as credit.

Recording a Journal Voucher for Refund of

Tax Credit under GST
You can claim the excess amount paid as tax, interest, penalty, late fee or other dues as refund using
a journal voucher.
To record a journal voucher for refund
5. Debit the bank ledger, and enter the amount of interest liability.
6. Credit the GST ledgers or ledger grouped under Current Assets.
Similarly, you can record the journal voucher by selecting the Additional Details in the Stat
Adjustment Details as:
● Not Applicable, for refund of excess tax payment made.
● Penalty, for refund of excess payment made towards penalty.
● Late Fee, for refund of excess payment made towards late fee.

● Others, refund of excess payment made towards other dues
Recording a Journal Voucher for ISD Credit

under GST
When multiple services are received for businesses operating under a single registration, against a
single tax invoice, the tax credit of such services can be distributed amongst each business as Input
Service Distributor (ISD) credit. You can record a journal voucher to avail the ISD credit.
To record a journal voucher to avail the ISD credit
4. Debit the state tax, central tax, integrated tax or cess ledgers and credit the party ledger.
Recording a Journal Voucher for Transitional

Credit under GST
When the stock purchased during the previous tax regime is cleared, the tax credit can be claimed
under GST. This facility is available only upto 6 months from the date of implementation of GST.
You can record this transaction using a journal voucher.
To record a journal voucher for transitional credit

5. In the journal voucher,
● For availing tax credit on excise and service tax, debit the central tax ledger and credit the service
tax and CENVAT ledgers.
● For availing tax credit on VAT, additional tax, cess, TDS and entry tax, debit the state tax/UT
tax ledger and credit the VAT, additional tax, cess, TDS and entry tax ledgers.
Recording Journal Vouchers for Interest,

Penalty, Late Fee and Other Dues in GST
You can a record journal voucher to raise the liability towards interest, penalty, late fee, or other
dues.
To record a journal voucher for interest, penalty, late fee and other dues payable

5. Debit the expenses or party ledger, and enter the amount of interest liability.
6. Credit the ledger grouped under Current Liabilities.
● Penalty, for penalty payable.
● Late Fee, for late fee payable.
● Others, for other dues payable.
Recording Journal Vouchers for Interest,

Penalty, Late Fee and Other Dues in GST
You can a record journal voucher to raise the liability towards interest, penalty, late fee, or other
dues.
To record a journal voucher for interest, penalty, late fee and other dues payable

5. Debit the expenses or party ledger, and enter the amount of interest liability.
6. Credit the ledger grouped under Current Liabilities.
● Penalty, for penalty payable.
● Late Fee, for late fee payable.
● Others, for other dues payable.
Recording Journal Vouchers for Reversal of

Tax Credit under GST
Reversal of tax credit can be done for trading goods, capital goods, goods meant for self-
consumption and services. You can reverse the tax credit, using a journal voucher.
To record a journal voucher for reversing the tax credit

5. In the journal voucher, debit the expense or party ledger, and credit the integrated tax, central tax,
state tax/UT tax or cess ledgers.
6. Press Ctrl+A to accept the voucher.
GSTR-1
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.
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.
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.

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:
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.

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.
Incomplete/mismatch in information (to be resolved)
Displays the count of all vouchers with insufficient GST related information. These are exceptions
that need to be resolved for the vouchers to be included in the returns. Drill down from this row to
view the list of exception types and number of exceptions under each type. These exceptions can be
resolved right away, without having to alter vouchers or update masters one by one.
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.
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.
Summary of Exceptions (GSTR-1)

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.
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.
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.

Note: Click X: Exclude Vouchers to exclude the voucher from forms and annexures.
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.
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.
Note: Click X: Exclude Vouchers to exclude the voucher from forms and annexures.
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.
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.
Incorrect tax type selected in tax ledger
Displays count of transactions in which type of duty is invalid.
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.
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.

Recompute
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.
Resolve
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:

Accept as is
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.
Voucher with incomplete/incorrect adjustment details (GSTR-2)
Displays the count of journal transactions in which Nature of adjustment is not selected.
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.
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.
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.
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:

To resolve all configuration level exceptions
1. Select Information required for generating table-wise not provided.
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.
Drill-down from any row and resolve the respective exceptions to include the vouchers in return.
Filter for Item level and Ledger level exceptions
By default, the list of exceptions displays incomplete/mismatch information details voucher-wise.

However, the button options provided in the report allow you to view the exceptions item master-
wise or ledger-wise. In item master-wise view, all exceptions caused by an item can be resolved by
updating missing or incorrect information from a single screen. This will result in resolving multiple
voucher exceptions caused by the particular master. Similarly, all exceptions caused by a particular
ledger can be resolved from ledger-wise exceptions list.
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.
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.
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 Taxabilityand enter the Effective date.
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.

2. Navigate to required exception type and press Enter from Total Vouchers column to display
Exception Resolution screen, as shown below:
3. Select Nature of transaction and enter rate.

Table-wise GSTR-1
GSTR-1 report can be viewed in the table-wise format. The table-wise report is structured in line
with the GSTR-1 format given by the department.
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 Displays amendments to details of outward supplies to a registered person of earlier tax
Invoices 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,
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration Type as
● Unregistered
● Consumer

6A Amendments to Displays amendments to details of taxable outward supplies to a consumer where place of
B2C(Large) Invoices 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 Displays amendments to details of taxable value and tax amount from taxable outward supplies
B2C(Small) Invoices 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

● Sales Taxable
● Sales Exempt
● Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
● Regular
● Composite

8A Amendments to Displays amendment to details of credit and debit notes of earlier tax periods.
Credit/Debit Notes
9 Nil Rated Invoices Displays the taxable value from nil rated, exempt and non-GST outward supplies. The
transactions recorded with,
● Sales Exempt
● Sales Nil Rated
● Interstate Nil Rated
Taxability as
● Taxable
● Nil Rated
● Regular
● Composite

● Consumer
● Unregistered
and, Is Non-GST good? option enabled.

10 Exports Invoices isplays the taxable value and tax amount from supplies exported (including
deemed exports) in the reporting period. The transactions recorded with,
● 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
● Composite
● Consumer
● Unregistered
● Unknown
10A Amendments to Displays details of amendments to supplies exported of earlier tax periods.
Exports Invoices

11 Tax Liability on Displays tax liability arising on account of time of supply without issuance of invoice in the
Advances 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 Displays details of amendments to tax liability arising on account of time of supply without
Tax Liability on issuance of invoice in the same period.
Advances
12 Setoff of Tax Paid Displays tax already paid (on advance receipt/ on account of time of supply) on invoices issued
against Advances in the current period. Displays the tax amount from sales transactions for which tax liability was
created in advance receipts recorded in previous period.
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.
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.
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.
******
HSN/SAC Summary
HSN/SAC Summary report contains the details of HSN/SAC-wise taxable value and tax amount
that needs to be filed along GST returns. The HSN Summary in the GSTR-1 report of Tally.ERP 9
provides HSN/SAC-wise details of all outward supplies. And, in GSTR-2 the HSN/SAC-wise
details of all inward supplies are provided.
To view HSN/SAC summary of outward supplies

2. Click N: HSN/SAC Summary in the GSTR-1 report. The HSN/SAC Summary report
appears.
Description: Displays the description specified for the HSN/SAC.
HSN/SAC: Displays the HSN code or SAC of the good or service.
Type of Supply: Display the Type of Supply selected for the HSN/SAC.
Quantity UOM: Displays the quantity supplied for the period using the defined unit of
measurement.
Taxable Value: Displays the consolidated taxable value from all the transactions in the period for
the HSN/SAC.
Integrated Tax Amount: Displays the consolidated integrated tax amount from all the interstate
transactions in the period for the HSN/SAC.
Central Tax Amount: Displays the consolidated central tax amount from all the interstate
transactions in the period for the HSN/SAC.

State Tax Amount: Displays the consolidated state tax amount from all the interstate transactions
in the period for the HSN/SAC.
Cess Amount: Displays the consolidated cess tax amount from all the interstate transactions in the
period for the HSN/SAC.
Total Tax Amount: Displays the total tax amount from all the interstate transactions in the period
for the HSN/SAC.
Drill down from any HSN/SAC to view the list of transactions.
F12: Configure
View Summary of: This option enables you to view report with values for only goods or services or
both.
View vouchers based on HSN/SAC: This option enables you view the report with values of
goods or services that have HSN/SAC information or without these details or both.

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.
Displays GST (which is selected as the Tax Type in the Stat

Type of Tax Payment
Payment Details screen of payment voucher).
Displays the From and To dates entered in Stat Payment

Payment Period
Details screen of Challan Reconciliation report.
Displays the payment type based as Interest, Late Fee, Others

Type of Payment
or Penalty, selected for the first ledger in the payment voucher.
Displays the Mode of payment selected in the payment voucher

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

Bank Name
the Challan Reconciliation report.
Common Portal Displays the Common Portal Identification Number (CPIN)
Identification Number entered in the payment voucher or in the Challan
(CPIN) Reconciliation report.
Challan Identification Displays the Challan Identification Number (CIN) entered in
Number (CIN) the payment voucher or in the Challan Reconciliation report.
Displays the BRN/UTR entered in the payment voucher or in

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

Displays the Payment date entered in the payment voucher or in

Payment Date
Amount Displays the amount entered in the payment voucher.
GST FAQ
This topic lists the important FAQ on GST.
1. How do I raise an Invoice for Service Bill in Accounts only company?
You need to create your service bill as a sales voucher in accounting invoice mode, by selecting the
relevant service and tax ledgers.
2. Is it required to print date and time of removal of Goods for GST invoices?
No. GST invoice rules do not mandate printing the date and time for removal of goods.
3. I have sold goods on 28th Jun 2017, but need to record a sales return on 1st Jul 2017. How
do I record my credit note for the sales return?
Even if the VAT rates are levied in the sales invoices recorded on 28th Jun 2017, you need to record
the credit note with the GST rates applied, for the returns on 1st Jul 2017.
4. HSN is not getting printed in the sales invoice although the same is updated in the GST
Rate Setup screen. Why?
Refer to the HSN/SAC code is not getting printed in the invoice topic for more details.
5. How to configure GST setup at the master and transaction levels?
For detailed information, refer to Start Using Tally.ERP 9 for GST Compliance.
6. How do I account for opening ITC for GST using Tally.ERP 9?
Refer to Transferring Tax Credits of VAT, excise and service tax to GST for more information.
7. How do we configure GST for composite dealer as it is defaulted with Regular

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

8. Why is the HSN code provided for excise not getting copied in Tax Rate Setup screen of
the GST menu for the said item?
HSN provided during excise regime may be 8 digits and the same need not be furnished for GST.
Therefore, Tally.ERP 9 is does not automatically copy the HSN code on activating GST for your
existing data.
9. How do we calculate IGST when buyer and consignee are in different locations?
GST is calculated based on the buyer's state selected in the supplementary details screen of an
invoice. If you select a state that is different from the state selected in the party master, then IGST is
calculated. Refer to Interstate Sales for more information.
10. How do I pass multiple tax rates in a single invoice?
In a single invoice, select the stock items each attracting a different GST rate, and then select the tax
ledger. Press Alt+A to view the tax calculations for each of the stock items selected in the invoice.
11. Why are CGST and SGST not getting calculated in my invoice?
● Ensure that the date of your transaction is on or after 1st July 2017.
● Select the tax vouchers 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.
12. How do we adjust the ITC available at HO as we have registered under ISD.
Refer to Recording a Journal Voucher for ISD Credit under GST for detailed information.
13. 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 separate voucher numbering and generate invoices for tracking reverse
charge to unregistered dealers.
14. 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.
15. 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.
16. 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 invoice, Bill of Supply, and Advanced Receipts.
17. 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.
18. 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.
19. 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.
20. 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.
21. 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.
22. 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 under Duties & Taxes. If there
is input tax to be availed the tax ledgers will show a debit balance.
23. How does GST Classification for Capital Goods happen in Tally.ERP 9?

You can create capital goods under Fixed Assets, and then enable GST.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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.
31. 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.
32. 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.
33. 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.
34. 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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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.
40. 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.
41. 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.
42. 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.
43. 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.
44. How can I get the HSN code for any product?
You can find the chapter-wise-rate-wise GST rate schedule for goods on the website
http://www.cbec.gov.in/htdocs-cbec/gst/index. Alternatively, contact your CA/business
consultant for more details.


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1. Start Using Tally.ERP 9 for GST Compliance

Start Using Tally.ERP 9 for GST Compliance

To use Tally.ERP 9 for GST compliance,

3. Update or create ledgers as required.

● Update stock items, and stock groups to include GST details.

● Update sales and purchase ledgers to use in GST transactions.

For Tally Sales & Service Contact @

● Create GST tax ledgers to calculate taxes in transactions.

Your company is ready with all the masters.

Activating GST for Your Company

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

2. Press F11 > F3.

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

For Tally Sales & Service Contact @

Set GST rate

Create GST Classification

Setting Up GST Rates

To set GST rates for stock groups and stock items

For Tally Sales & Service Contact @

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

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

For Tally Sales & Service Contact @

Creating GST Classification

To create GST classification

Updating Stock Items and Stock Groups for

Updating a stock item

Updating a stock group

Updating a stock item

To update a stock item

For Tally Sales & Service Contact @

3. Select the Type of supply.

4. Press Ctrl + A to save.

Updating a stock group

To update a stock group

For Tally Sales & Service Contact @

3. Press Ctrl + A to save.

To set an item as non-GST good

For Tally Sales & Service Contact @

3. Press Ctrl+A to accept.

5. Press Ctrl+A to accept.

6. Save the item or group master.

Updating a Service Ledger for GST

To update service ledgers

2. Is GST Applicable - Applicable.

For Tally Sales & Service Contact @

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

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

4. Type of supply - Services.

5. Press Ctrl + A to save.

Updating Sales and Purchase Ledgers for

For Tally Sales & Service Contact @

Updating a Sales Ledger

Updating a Purchase Ledger

Updating a Sales Ledger

To update a sales ledger

2. Is GST Applicable - Applicable.

For Tally Sales & Service Contact @

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

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

5. Press Ctrl + A to save.

Updating a Purchase Ledger