MS OFFICE & TALLY

UNIT-V

1. What is GST?
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The
Goods and Service Tax Act was passed in the Parliament on 29th March 2017.
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India
is a comprehensive, multi-stage, destination-based tax that is levied on
every value addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the
supply of goods and services. This law has replaced many indirect tax laws
that previously existed in India.
GST is one indirect tax for the entire country.

Definition of GST :

“ GST is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition. “

Multi-stage :

There are multiple change-of-hands an item goes through along its supply
chain: from manufacture to final sale to the consumer.
Let us consider the following case:

 Purchase of raw materials

 Production or manufacture
 Warehousing of finished goods
 Sale to wholesaler
 Sale of the product to the retailer
 Sale to the end consumer

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Goods and Services Tax is levied on each of these stages which makes it a
multi-stage tax.

Value Addition

The manufacturer who makes biscuits buys flour, sugar and other material.
The value of the inputs increases when the sugar and flour are mixed and
baked into biscuits.
The manufacturer then sells the biscuits to the warehousing agent who packs
large quantities of biscuits and labels it. That is another addition of value after
which the warehouse sells it to the retailer.
The retailer packages the biscuits in smaller quantities and invests in the
marketing of the biscuits thus increasing its value.
GST is levied on these value additions i.e. the monetary value added at each
stage to achieve the final sale to the end customer.

Destination-Based
Consider goods manufactured in Maharashtra and are sold to the final
consumer in Karnataka. Since Goods & Service Tax is levied at the point of
consumption. So, the entire tax revenue will go to Karnataka and not
Maharashtra.

a comprehensive, multi-stage, destination-based tax that is levied on

every value addition.”

Advantages Of GST
GST has mainly removed the Cascading effect on the sale of goods and
services. Removal of cascading effect has impacted the cost of goods. Since
the GST regime eliminates the tax on tax, the cost of goods decreases.
GST is also mainly technologically driven. All activities like registration, return
filing, application for refund and response to notice needs to be done online
on the GST Portal; this accelerates the processes.

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What are the components of GST?
There are 3 taxes applicable under this system: CGST, SGST & IGST.

 CGST: Collected by the Central Government on an intra-state sale (Eg:

transaction happening within Maharashtra)
 SGST: Collected by the State Government on an intra-state sale (Eg:
transaction happening within Maharashtra)
 IGST: Collected by the Central Government for inter-state sale (Eg:
Maharashtra to Tamil Nadu)

How to Activate GST in Tally (or) Enable GST in

Tally.ERP 9
How to activate GST in Tally ERP 9

To use GST (Goods and Services Tax) features in Tally, it is

mandatory to enable or activate GST in Tally. After activation of GST
feature in Tally.ERP 9, all the GST related features are available for
all general ledgers, stock items and transactions in Tally.

below is the step by step procedure to activate GST in Tally.

Step 1: From Gateway of Tally, click on F11: Features or press

function key F11.

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Step 2: Under company features options, choose Statutory &
Taxation or press function key F3.

Step 3: In next screen company operation alteration, enter the following details.

 Enable Goods and Services Tax (GST: Yes

 Set/alter GST details: Yes

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Step 3: When you enable “Yes” for Set/alter GST details, the following screen
appears.

Step 4: Now you need to update all the required details of GST.

 State: It automatically displays state name based on the state you have
updated in company.
 Registration Type: Choose GST registration type as “Composition” or
“Regular.
 GSTIN/UIN: Update the Goods and Services Tax India (GSTIN) number, this
GSTIN can be printed on invoices.

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  Applicable from: Enter the date that GST will be applicable from for
transactions.
 Periodicity of GST: Enter the periodicity of GST as Monthly or Quarterly as
per requirements of company.
 e-Way bill applicable: Choose this option as “Yes”
 Applicable from: Enter the date that e-way bill to be applicable from
 Threshold limit includes: It can be based on invoice value / taxable and
exempt goods value / taxable goods value
 Threshold limit: Enter the amount value of threshold limit allowed
 Applicable for intrastate: Choose option as “Yes”, if it is applicable to
your state
 Threshold limit: Enter threshold limit for intraste
 Enable tax liability on advance receipts: Choose “Yes” to activate tax
liability on advance receipts
 Set/alter GST rate details: Choose Yes to set or alter GST rate details at
company level.
 Enable GST classifications: Choose Yes to activate GST classifications.

After entering all the required details for activation of GST in Tally, choose “Yes”
to accept the data and save the details in Tally.

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Recording of GST Intrastate outward
supply in Tally ERP9
Once you activate GST for your company, then you can record sale of goods or services by using
the sales voucher in Tally.ERP9.
 
The SGST and CGST will be applicable in case of intra-state (Within State) transactions.
 
 
Ledgers Creation
 
Path: Gateway of Tally -> Accounts Info -> Ledgers -> Create
 

 
Name:  Rajesh & Co
 
Under: Sundry Debtors
 
Press Enter to save the screen
 
 

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Registration type: Regular
 
GSTIN/UIN: Enter customer GSTIN number
 
 
 
Ledger Name: Sales@18%
 

 
Under: Sales Accounts
 
Is GST Applicable:  Applicable
 
Set/alter GST details:  Yes, once enable this option then the below GST details for ledger screen
will appear.
 
Press enter to save the screen
 
 

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Nature of transaction: Sales Taxable
 
Taxability: Taxable
 
Tax Rate: Set the GST tax rate @18%

Ledger Name: Output CGST@9%

 

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Under: Duties & Taxes
 
Type of duty/tax:  GST
 
Tax type: Central Tax
 
Press enter to save the screen

 
Ledger Name: Output SGST@9%
 

Under: Duties & Taxes

 
Type of duty/tax:  GST
 
Tax type: State Tax
 
Press enter to save the screen
 

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Recording Intrastate Outward Supply
 
Path: Gateway of Tally -> Accounting vouchers -> F8 Sales
 
Example: Sold 4 Dell computers to Rajesh & Co each @55,000 with GST@18% (CGST@9% and
SGST@9%)
 

 
Invoice Reference no: 432 (Enter invoice number)
 
Date: 02.08.2017 (Enter invoice date)
 
Select the sale ledger
 
Select the name of item
 
Select the output CGST and output SGST tax ledgers
 
Press enter to save the screen
 
Click on Tax Analysis to view the tax details
 
Click on F1 detailed
 

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How to generate GST Tax Invoice in Tally ERP 

During the sales voucher screen press Alt+P to print invoice

Print? Click on Yes

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RECORDING OF GST INTRASTATE
INWARD SUPPLY OF GOODS IN TALLY
ERP9

As per GST rule the movement of goods and services within

the state that is Intra-State Inward supply of goods or local
Purchase. For local purchase CGST & SGST is applicable
.Lets enter this local purchase in Tally ERP 9.

Activate GST in Tally ERP 9

To activate GST, Go to

Gateway Of Tally > F11 Features > F3: Statutory & Taxation 

Activate the following options

Enable Goods and Service Tax ( GST) :Yes

Set/Alter GST Details : Yes ( Do not set rate at this level)

Enter the details as shown below.

Know more About Activation Of GST in Tally

Setup GST rates for purchase voucher entry

You can setup GST rate at various level of Tally, at company level ,stock
group level,stock item level,ledger group level,ledger level etc. In this
tutorial we are setting GST at stock item level.

To set up GST rate at stock item level Go to

Gateway of Tally > Inventory Info > Unit of Measure > Create

Here we can choose No ( Number ) as unit.and UQC is NOS-NUMBERS

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Now let’s create stock item coir mattress

To do this go to

Gateway of Tally > Inventory Info > Stock Item > Create

Enter the details as shown in the below image

Set/alter GST Details : Yes, Press enter GST rate details  as shown below

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If all the options shown above are not visible to you Press F12
:Configure Button and enable the options you want.

When you add tax type , enter integrated tax as 18 % as per our
example, the Central tax and state tax will shown automatically.

Press enter to save all the screens o create stock item

Know How to setup GST rates

Create Purchase Ledger

To create a purchase ledger, you have to go to

Gateway of Tally>Accounts info > Ledger > Create

Let’s name this Purchase ledger as Purchase-GST,  Enter the details as

shown below and save the screen to create purchase ledger.

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Create GST tax ledger CGST & SGST for Local purchase
Now we need tax ledgers for purchase entry. As mentioned earlier local
purchase attracts Central tax ( CGST) and State Tax ( SGST) You have to
create these tax ledgers, to do this go to,

Gateway of Tally> Accounts Info> Ledger> Create

Enter the CGST details as shown below

Name : CGST

Under: Duties&taxes

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Type of duty/tax :Central Tax

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In the same manner create SGST Ledger also

Create Suppliers  (Sundry Creditors) Ledger for Local Purchase.

For local purchase the supplier should be in the same state of the
buyer,Let’s create the supplier ledger Bharath Traders as per this tutorial.

To do this go to

Gateway of Tally>Accounts Info> Ledger > Cretae

Enter the details as shown below.

Name : Bharath Traders

Under: Sundry Creditors

State : Delhi ( This should be accurate for gst purchase entry )

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 set/alter GST details : Yes, press enter key ,the GST Details screen will
pop-up

Registration type : select the GST registration type of Supplier whether

composition , consumer , Regular or unregistered. let’s select it as a
regular dealer.

Is a e-commerce operator : No

GSTIN/UIN : GSTIN of the supplier. see below image.

Press enter and save all screens.

How to enter Local purchase under GST

As per GST rules a transaction is said to be Local purchase ,only when the
buyer and seller are in the same state, also the transaction attract state
tax and central tax. Let’s see how a local purchase transaction is entered.

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

Purchase.
2. Enter the date by pressing F2 Date button.

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3. Enter the supplier invoice number from the purchase bill
4. Select Party account name ,here bharath traders
5. Select the purchase ledger we had created.
6. Enter name of item,here coir mattress
7. Enter Quantity & rate, the total amount automatically
calculated, Press enter key twice.
8. Select the Central tax ledger and State Tax Ledger.
The tax amount will be calculated automatically.

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

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Recording of GST Interstate
Inward supply in Tally ERP9
When you purchase of goods or services from other state supplier then integrated tax will
attract (IGST).
 
Path: Gateway of Tally -> Accounting Info -> Ledgers-> Create
 
Ledger Name: Interstate Purchase@18%
 

 
Name of Ledger: Interstate Purchase@18%
 
Under: Purchase Accounts
 
Inventory values are aff ected: Yes
 
Is GST Applicable:  Select Applicable
 
Set/alter GST details:  Yes, once enable this option then the below GST details for ledger screen
will appear
 
Type of Supply: Goods (If related to services select  Services)
 
 

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Nature of Transaction:  Select the related business transaction from the nature of transactions
like, Interstate Purchase Taxable.
 
Is reverse charges applicable:  No (If applicable select  Yes)
 
Integrated Tax: Specify the GST Tax rate like,  18%
 
Click on Yes to accept and save the entry
 
 
 

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Vendor Name: Bhavan Traders

 
Under: Sundry Creditors
 
Maintain balances bill by bill:  Yes
 
Inventory values are aff ected: No
 
Address: Enter supplier address
 
Country: India
 
State: Karnataka
 
Pin code: 560067
 
PAN/IT No: DFHCT6789P (Supplier PAN Number)
 
Set/alter GST details:  Yes, once enable this option then the below GST details screen will
appear.
 
Click on Yes to accept and save the entry
 

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Registration Type: You have to select supplier registration type  “Regular” (In case the supplier
registered under composition or unregistered dealer accordingly you need to select)
 
GSTIN/UIN: Enter supplier GSTIN number
 
 
 
Purchase Invoice posting in Tally ERP9
 
Path: Gateway of Tally -> Accounting Vouchers -> (F9) Purchases
 
Example: Purchased 10 Dell computers each@50000 from Bhavan traders, Bangalore.
 
Tax Classifi cation details:  Select “Interstate Purchase Taxable”  during the purchase voucher
(F9) screen.
 

 
Supplier Invoice No: 678 (Enter supplier invoice number)
 
Invoice Date: 2.08.2017 (Enter invoice date)
 
Party Name: Bhavan Traders

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Name of Item : Dell Computers
 
Quantity: 10 (Enter quantity as per vendor invoice)
 
CGST and SGST will be calculated automatically based on GST classifi cation and GST rate.
 
Click on Yes to accept and save the entry
 
During the same screen, click on  Tax Analysis then the below screen will appear and click on
detailed (Alt+F1) to view the GST tax details.
 
 

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Recording of GST Interstate
outward supply in Tally ERP9
Integrated tax (IGST) will attract when goods or services supplies to the other state customer.
 
 
Ledgers Creation
 
Path: Gateway of Tally -> Accounting Info -> Ledgers -> Create
 
Name: Inter-State Sales@18%
 

 
Under: Sales Accounts
 
Set/alter GST Details:  Yes, once enable this option then the below GST details screen will
appear.
 

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Nature of transaction: Interstate Sales Taxable
 
Taxability: Taxable
 
Rate: Set the GST rate as applicable
 
Press enter to save the screen
 
 

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Sundry Debtors Ledger Creation
 

 
Name: John & Co
 
Under: Sundry Debtors
 
State: Karnataka
 
Press enter to save the screen
 
Set/alter GST details:  Yes, once enable this option then the below GST details screen will
appear.
 

 
Registration type: Regular
 
GSTIN/UIN: Enter customer GSTIN number
 
 

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Recording of  GST Interstate Outward supply
in Tally ERP9
 
Path: Gateway of Tally -> Accounting Vouchers -> F8 Sales
 
Example: Sold 6 Dell computers to John & Co, Bangalore each @55,000 with GST@18%
(IGST@18%)
 

 
During the sales voucher screen click on  Tax Analysis then the below screen will appear.
 
Click on detailed  (Alt+F1) to view the GST tax details.
 
 

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 GST Reports

How to File GSTR-1 from Tally ERP 9

GSTR-1  is a monthly or quarterly return that should be filed by every registered
dealer. It contains details of all outward supplies i.e. sales.

To generate the GSTR-1 report, follow the steps given below:

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

2. Select GSTR-1.

3. Click Alt+V: Default View, you will get the following.

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The GSTR-1 Screen appears :

 
Return Summary:
It will display the -
 total number of Vouchers for the period
 Vouchers included in returns
 Vouchers not relevant for returns
 Incomplete / mismatch in information

Particulars:
It will display
 The details of the taxable value
 Tax amount from outward supplies considered in the returns
 Drill down from any part to display detailed information at the subsequent levels

In Tally.ERP 9, from GSTR-1 report we can perform the following activities

Click V: Table-wise view to view GSTR-1 report in table format
Click J: Stat adjustment - to record the stat adjustment entry in journal voucher
Click U: Status reconciliation - to mark the status of each transaction based on the
online status
Click E: Return to export the GSTR-1 return in the required excel format for any given
period
Click N: HSN/SAC Summary - it displays the summary of HSN/SAC code of all the stock
items
Click A: View Accepted as is - it displays the details of the screen list of vouchers
accepted as is.

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GSTR-2 Report in Tally.ERP 9

GSTR-2 displays the details of inward supplies.

GSTR-2 format is standardized format prescribed by the department.

GSTR-2 form is divided into multiple tables, each table is used for a different type of inward supply.

To generate the GSTR-2 report, follow the given steps below:

1. Go to Gateway of Tally > Display > Statuary Reports > GST

2. Select GSTR-2

3. Click Alt+V: Default value, you will get the following screen

● Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR–2 .

Return Summary:
It will display the -
 total number of Vouchers for the period
 Vouchers included in returns
 Vouchers not relevant for returns
 Incomplete / mismatch in information

Particulars:
It will display
 The details of the taxable value
 Tax amount from outward supplies considered in the returns
 Drill down from any part to display detailed information at the subsequent levels

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