Contents

Script and Product Demo.......................................................................................... 2

Slide No. 2........................................................................................................ 2
Slide No. 3........................................................................................................ 2
Slide No. 6........................................................................................................ 2
Slide No. 8........................................................................................................ 2
Slide No. 10...................................................................................................... 2
Slide No. 11...................................................................................................... 4
Slide No. 12...................................................................................................... 6
Slide No. 13...................................................................................................... 8
Slide No. 15..................................................................................................... 11
Slide No. 17..................................................................................................... 12
Slide No. 18..................................................................................................... 13
Slide No. 19..................................................................................................... 13
Slide No. 21..................................................................................................... 14
Slide No. 23..................................................................................................... 14
Slide No. 25..................................................................................................... 15
Slide No. 26..................................................................................................... 15
Slide No. 27..................................................................................................... 15
Slide No. 29..................................................................................................... 15
Slide No. 30..................................................................................................... 15
Slide No. 31..................................................................................................... 15
Slide No. 32..................................................................................................... 16
Slide No. 33..................................................................................................... 16
Slide No. 34..................................................................................................... 16
Slide No. 35..................................................................................................... 16
Slide No. 36..................................................................................................... 16
Script and Product Demo
Slide No. 2
This slide is self-explanatory.

Slide No. 3
This is basically a context-setting slide.

Being in a profession where you work for 365 days without any declared holiday, you still face
shortage of time during every return filing date. There are many internal and external factors that
impact the working of your firm.

In today’s session, we will try to discuss the pain points that impact your day to day work. We
believe that you have your own best practices to handle such situations, but being the technology
partner to your fraternity, it is our responsibility to explain and show you how to take the maximum
benefit from our product

We have prioritized the queries which were received during our interactions with multiple
chartered accountants, and are addressing the top 4 queries. You might have your own queries on
the product, which you can ask during the presentation.

Slide No. 6
This slide is self-explanatory

Slide No. 8
This slide is self-explanatory

Slide No. 10
Scenario Explanation
During the VAT regime, ITC on expenses related to the furtherance of businesses were not allowed.
We used to claim this under Service Tax (where the return was filed based on consolidated figures).
That is why we had the practice of recording purchases related to trading in purchase voucher, and
transactions related to expenses in journal voucher.

However, in GST, we have an opportunity to claim ITC on expenses related to the furtherance of
business. The only condition is to provide the invoice-wise record of such transactions.

Changes in taxation bring about changes in the practices we opt for recording transactions. Hence
most of the users started using the purchase register as it provides the field to capture the supplier
invoice number and date.

There is nothing wrong with this and the client can record such transactions in the purchase
voucher. It will have a correct impact on financial reports.

But, being a professional, you have the practice to check the purchase register of the client to
check for purchases related to trading.

Take this image for example. We can see that Rs. 75,952 is reflecting on the client’s purchase
register.

After drilling down to this screen, we see that there is one bill for the client’s stationery expenses.
The very first question which comes to mind is, isn’t it a mistake? Isn’t this putting a wrong impact
on the financial records? So, let’s check this out. In this image, we can clearly see that the impact
of the transaction is complete and correct.

Now, let’s discuss the way to record such transactions in a manner that it doesn’t impact the
purchase register of the client.

Solutions available in the product

In case there is an expense being paid in cash
We can record such transactions directly in the payment voucher along with the supplier invoice
number and date.

To do so, we need to follow these steps:

 Open the purchase voucher

 Press F12
 Enable Use Ref. number in payment and show party details for GST
In case there is a bill to be booked
We can record such transactions directly in the journal voucher along with supplier invoice number
and date.

To do so, we need to follow these steps:

 Open the journal voucher

 Press F12
 Enable Use Ref. number in payment and show party details for GST

Post the transaction, we can navigate to GSTR 2 to see the impact of transactions.

Slide No. 11
Scenario Explanation
Over time, we have developed our own ways and methods for filing GST returns. Some ask the
client to send bill books and registers, some ask for the data folder, some ask for the JSON file,
while some ask for GSTR 1 Excel.

All methods mentioned for filing returns are correct and can be used as per your choice. But here,
we would like to talk about something which you might not have observed, but it is our duty to
keep you informed and aware of it.

If we talk about the excel format of GSTR 1 provided by the government, the initial GSTR 1 format
used to have the columns for tax amount, but the current format does not have such column.

This might not sound like something we should be discussing in this forum, but here is the catch,
especially for those who make the JSON for GSTR 1 through GST offline tool on the basis of GSTR 1
Excel received from the client.

Rounding off is something that is very common in business transactions. To do this, clients generally
configure the rounding parameters in tax ledgers. The tax ledgers in his system will show the
rounded off figure.

Like in the scenario shown here, we can see that the taxable value is Rs. 18,520 on which an 18%
tax rate is applied. As per this, the CGST/SGST figure should be Rs. 1,666.80, but the tax amount is
rounded off.

The impact of such transactions on GSTR 1 looks like this

Now, the client exports the GSTR 1 and sends it to you

In this Rxcel format, there is no column for the tax amount. So, the first concern which comes to
mind is, how would you know that the amounts have been rounded off during voucher posting?

Now, let’s import the Excel file into the offline tool and generate the JSON file.

As we can see, the tax amount for CGST/SGST as per the GST offline tool is Rs. 1,666.80 and the
same amount will go to the portal.

To reconcile this, we need to have the actual amount of taxes in the voucher. In the above
illustration, we have only one transaction but we all know doing this will have two consequences:

 First, doing this manually for all transactions is not practically possible
 Second, even if we do so, it will change the value of the invoice as well as the outstanding
of parties

Solution available in the product

Now let’s talk about a solution that can correct the round off amount without impacting the
outstanding of client’s parties and that too in a single click.

Resolving round off error in triangulation

To make the modifications, which we just discussed, we need to follow these steps:

 Create a master for round off under Indirect Expenses (or as per the rounding opted)
 During the master creation, select Invoice Rounding under Type of Ledger

 Post the creation of master, navigate to GSTR 1 and Press F12 and set the “Allow tax
difference up to” to Zero “0”.
 Now all vouchers with rounding tax figures will show under the “Incomplete and mismatch”
section.
 From “Incomplete and mismatch”, drill down to resolve the issue and do the following
 o Press ALT+R
o Select round off ledger
o Press F5 to recompute

That’s it. This single-click process will help you resolve such issues for any number of vouchers.

Now, let’s check the impact of this action on transactions:

Slide No. 12
Scenario Explanation
In the books of accounts, there are different types of input tax credits that are either not allowed
to the client for his business, or need partial or full reversal (for example if there are any
exempted outward supplies, input consumed other than outward supplies). These types of reversals
need to be booked into the books of accounts with an impact on accounting, ledgers and GST
returns.

In GST, there are different rules/scenarios for the reversal of input tax credit. Tally has stat
adjustment flags for specific kinds of reversals and adjustments.

Generally, such reversals are recorded into the journal voucher without using pre-defined
adjustment flags. As a result, the posted journal entries impact financial reports and ledgers but
GST returns do not show the figures as it should be.

Let’s see, what happens when adjustments are recorded without using adjustment flags

Recording ineligible ITC without stat adjustment flag

Recording reversal of ITC without stat adjustment flag

Here’s the impact on the financial report

Here’s the impact on GSTR 3B

GSTR 9 (annual computation), ITC reversal and Ineligible ITC are not showing any value

As we just saw, the journal entries made an impact on ledgers and financial reports but did not
impact the GST returns.

Solution available in the product

To have the right impact of such reversals on GST returns, we need to use the pre-defined GST stat
adjustment flags available in journal voucher. These flags will automatically update the figures in
GSTR 3B and GSTR 9 (annual computation).

To record ineligible ITC with stat adjustment flag – open the journal voucher posted without stat
adjustment flag, press ALT+J and select the necessary adjustment flag (Input CGST = Tax rate –
2.5%, Taxable value – Rs. 9,400) (Input SGST = Tax rate – 2.5%, Taxable value – Rs. 9400)

To record reversal of ITC with stat adjustment flag - open the journal voucher posted without stat
adjustment flag, press ALT+J and select the necessary adjustment flag. (Tax rate - 12%, Taxable
value – Rs. 24,000)
Here’s the impact on the financial report

Here’s the impact on GSTR 3B

Here’s the impact on GSTR 9 (annual computation)

Slide No. 13
Scenario explanation
As per general practice, credit of the taxes paid under the reverse charge mechanism is either
utilized in the same month or in the next month. To have clear visibility of ITC paid vs utilized,
professionals prepare a calculation sheet on excel. This sheet contains the month-wise amount of
ITC paid under RCM and utilized.

This sheet helps professionals in tracking the following:

 Whether the liability under RCM was accounted for or not

 If the ITC of any particular month is utilized in multiple subsequent months
 If the ITC of any previous month is unutilized

This sounds well and good, but maintaining this sheet needs duplication of work. Professionals need
to record the transactions in the system to maintain ledgers and then the same information needs
to be entered into the sheet. Not only this, but at the time of cross-checking the records,
professionals need to open the data in the system and Excel side by side.
Solution available in the product
A similar report is available in Tally, in which the details are filled based upon the voucher posting
done by the user. The summary sheet can be easily accessed by navigating to the report and
voucher level details can be seen just by pressing the Enter button from there.

To get the details that were just explained, you need to do the following:

 Configure RCM details at the master level – this will help in identifying the total amount of
tax to be booked under RCM liability for any particular month.

 Now, the transactions related to the RCM master will be captured in the voucher

Here we are taking only one transaction but in a real scenario, there will be a large number
of transactions related to RCM. Now, the very first question which comes to our mind is,
how to know the total amount for which the liability needs to be booked?
 We can navigate to GSTR 3B to know the total amount for which liability is to be booked.

Details regarding the total amount under RCM and transactions participating in the RCM
calculation are available on one screen.
 These figures are only for reporting purpose and liability will be booked by the user. Open
the journal voucher dated 30-Apr-2019 for ITC under RCM, remove the optional flag and
save.
  In the subsequent month, input tax credit will be taken for the amount paid in the previous
month. Open the journal voucher dated 3-May-2019 for ITC under RCM, remove the optional
flag and save.

 At the beginning, we had discussed the excel sheet prepared by professionals to maintain
the record of tax paid vs ITC availed (under RCM).

Slide No. 15
Scenario explanation
Sometime knowingly or unknowingly, the backdated vouchers are added or modified. Such additions
and modifications are hard to find. In such a situation, valuable time is spent on the identification
of such addition and modifications. The situation becomes critical if it is encountered just before
return filing.

Generally, the client sends the data just before the return filing and sometimes on the date of
return filing. Credibility and correctness of data need to be ensured before filing the return.
Professionals have their own ways to check the credibility and correctness of data.
Solution available in the product
There are two ways to handle this:

 By restricting the backdated access - In Tally, multiple users and passwords can be
maintained. Role-based and backdated access can be allowed and restricted to selected
users.

Now, open the company with the user name “Satish” and password “Satish”. After opening
the company with given credentials, navigate to Daybook and try to open the transaction
dated 15-Apr-2019.

 By tracking the backdated modifications, you and your client both are the custodians of
books of accounts. Sometimes, the first approach means restricting the backdated access,
which is not appreciated by the client as he does not want such restrictions. In this case,
the second approach can be adopted.

Before sending the data back to the client, please verify the vouchers and masters. The
verification of vouchers and masters can be done by navigating in this manner:

Open the company with the user name “raman” password “raman”

Gateway of Tally -> Display -> Statement of Accounts -> Tally Audit -> Voucher Types -> F5
-> ALT+F7
Gateway of Tally -> Display -> Statement of Accounts -> Tally Audit -> Masters -> Ledgers ->
ALT+F7

Now, if any modification is done in a verified voucher/master or any new master/voucher

added, that will be highlighted in the report and professionals need not spend time in
finding the additions and modifications.

Open the company with the user name “satish” password “satish”

Navigate to Daybook, open the voucher dated 19-Apr-2019 and change the voucher amount
from to 11,500 from Rs. 12,000.

The modification and addition done post verification can be seen by navigating through
Gateway of Tally -> Display -> Statement of Accounts -> Tally Audit -> Voucher Types -> F5
-> ALT+F7
  Tally’s prevention, detection and correction mechanism ensures that any anomaly in the
client’s record is easily identified. The correctness of records can be checked by navigating
through
Gateway of Tally -> Display -> Statutory reports -> GST -> GSTR 1

Tally not only helps in identifying the anomalies but helps in knowing the cause of it

Anomalies and mistakes can be rectified then and there – Enter GSTIN 07AABCH4343R1Z7

Slide No. 17
Scenario explanation
GSTR 9 annual return filing is made optional for the taxpayer having turnover below 2 crores. As
per the notification, it is confirmed by the department that GSTR 9 will be deemed filed if it is not
filed by such taxpayers on or before the due date. That is why professionals are advising their
clients to file the annual return to avoid any consequences in the future. Filing of GSTR 9 needs:

 Consolidation of records pertaining to that particular financial year

 Reconciliation of data available in books of accounts and data available in GSTR 2A and
GSTR 3B

GSTR 9 contains 19 tables, out of which few records need to be filed as per the records in books of
accounts and few are prefilled with information available on the GST portal. The consolidation of
records for entire financial year in the format defined by GST Council is a time taking process.

Solution available in the product

Tally provides consolidated summary for the entire financial year in the form of Annual
Computation. The details represented in GSTR 9 annual computation is similar to GSTR 9.

GSTR 9 annual computation can be accessed by navigating to

Gateway of Tally -> Display -> Statutory reports -> GST -> GST Annual Computation
Detailed information can be seen by pressing ALT+F1 from the same screen. GST annual
computation provides consolidated and month-wise summary for table no 4,5,6,7, 17 and 18.

Slide No. 18
Scenario explanation
It is notified that the taxpayer can claim provisional ITC only to the extent of 20% in excess of the
eligible credit available in the GSTR 2A. The amount of matched and mismatched ITC cannot be
figured out until the reconciliation of inward supplies and GSTR2A is done.

Solutions available in the product

Reconciliation of inward supplies with GSTR2A can be done in Tally just by loading JSON of GSTR
2A.

Reconciliation can be done by navigating through

Gateway of Tally -> Display -> Statutory reports -> GST -> GSTR 2 -> ALT+L

Slide No. 19
Scenario explanation
As GSTR 1 and GSTR 3B excel / JSON export is not new to the users and its utility is very clear to
everyone, only a product demonstration can be done.

Solution available in the product

GSTR 1 can be exported from

Gateway of Tally -> Display -> Statutory reports -> GST -> GSTR 1 -> CTRL+E

GSTR 3B can be exported from

Gateway of Tally -> Display -> Statutory reports -> GST -> GSTR 3B -> CTRL+E

Slide No. 21
Scenario explanation
After modifying the records and filing the return, the verified data needs to be sent back to the
client. The client cannot start the work for next month until he or she receives the updated
records. Delay in getting the updated record will affect day-to-day data posting at the client-side.

Solution available in the product

The updated record can be sent to the client without having any impact on the client’s day-to-day
data posting.

This can be done by following the these steps:

 Right after getting the data from the client, the feature from Gateway of Tally -> F11 ->
Accounting features -> Mark changed voucher needs to be enabled.
  This feature helps in making a log of all modifications and additions made in data. This log
can be deleted as and when required.
Open the transaction dated 6-Apr-2019 and change the amount to Rs. 9,000 from Rs, 7,500.

 Details of modifications and additions can be seen from Gateway of Tally -> Display ->
Exception report -> Marked voucher. On this screen, Tally lists all additions and
modifications which are done after activating the mark voucher feature.

 To communicate the changes and additions, the details available on this screen needs to be
exported in XML format. The exported XML can then be sent to the client over mail.

 The client can update their records just by importing that particular XML file from the
Import of Data option available on Gateway of Tally.

Slide No. 23
This is a summary slide about the benefit of everything we did in the previous slides. The slide is
self-explanatory.

Slide No. 25
This is a slide that represents the new return structure. This slide is just for reference. We should
not explain this slide in much detail. Considering the audience, we are not supposed to talk much
on this. Being a technology partner for them, we will only talk about the technical part of it and
that is available on the next slide.

Slide No. 26
On this slide, we need to discuss about the new concepts in GST 2.0 which are uploading of
invoices, submitting the uploaded invoices, locking invoices and uploading of missing invoices.

 Uploading of invoice 24X7 is related to E-invoicing which we are already discussing in

upcoming slides.
 Locking invoices – Under new return format, the ITC is limited to the extent of the invoices
uploaded by the supplier. The uploaded invoices need to be locked by the recipient so that
the supplier cannot make changes in invoices. On the due date of return filing, the invoices
available on the portal will be deemed locked (except the invoices marked as pending or
reject).
  Missing invoices – Invoices which are not uploaded by the supplier on the portal are called
missing invoices for the recipient. Options for uploading of missing invoices will be available
with the taxpayers filing normal return.

Slide No. 27
The slide is self-explanatory.

Slide No. 29
The basic aim behind adoption of e-invoice system by tax department is the ability to pre-populate
the return and to reduce the reconciliation problems. Huge increase in technology sophistication,
increased penetration of internet along with availability of computer systems at a reasonable cost,
have made this journey possible and hence more than 60 countries are in the process of adopting e-
invoice.

Slide No. 30
This slide is self-explanatory.

Slide No. 31
On this slide, we aim to explain the basic mechanism of e-invoicing. The process of e-invoice is as
follows:

 Seller needs to generate the invoice in his or her own accounting or billing system (it can
be any software utility that generates invoice including those using excel or GSTN’s
provided Offline Utility). The invoice must conform to the e-invoice schema (standards)
that is published and have the mandatory parameters. The optional parameters can be
according to the business need of the supplier. The supplier’s (seller’s) software should be
capable to generate a JSON of the final invoice that is ready to be uploaded to the IRP. The
IRP will only take JSON of the e-invoice.
 The IRP will check the hash from the Central Registry of GST System to ensure that the
same invoice from the same supplier pertaining to same Fin Year is not being uploaded
again. On receipt of confirmation from Central Registry, IRP will add its signature on the
Invoice data as well as a QR code to the JSON. The QR code will contain GSTIN of seller and
buyer, invoice number, invoice date, number of line items, HSN of major commodity
contained in the invoice as per value, hash etc. The hash computed by IRP will become the
IRN (Invoice Reference Number) of the e-invoice
 IRN record along with other details is shared with GST and e-way bill system. IRN along with
a QR code is sent to the seller and buyer on their mail ids as provided in the invoice.
 The GST System will update the ANX-1 of the seller and ANX-2 of the buyer, which in turn
will determine liability and ITC. E-way bill system will create Part-A of e-way bill using this
data to which only vehicle number will have to be attached in Part-B of the e-way bill.

Slide No. 32
This slide is self-explanatory.

Slide No. 33
This slide is self-explanatory.

Slide No. 34
This slide is self-explanatory.

Slide No. 35
This slide is self-explanatory.

Slide No. 36
This slide is self-explanatory.