GST USING TALLY.

ERP 9
Release 6.0

0
Contents

1. Introduction to GST ....................................................................................................................................... 6

Introduction ....................................................................................................................................................... 8
Old Taxation System .......................................................................................................................................... 8
Current Taxation System – GST.......................................................................................................................... 8
Why GST was introduced in India? .................................................................................................................... 8
Understanding GST Taxation System. ................................................................................................................ 9
Dual GST ...................................................................................................................................................... 10
Structure of GST .......................................................................................................................................... 10
Taxes Subsumed under GST ........................................................................................................................ 10
Determination of Tax .................................................................................................................................. 10
Registration ...................................................................................................................................................... 11
GSTIN Structure ............................................................................................................................................... 11
Businesses Liable to Register under GST.......................................................................................................... 11
Mandatory Registration ................................................................................................................................... 12
Process of Registration under GST .............................................................................................................. 12
Existing Registration .................................................................................................................................... 13
New Registration ......................................................................................................................................... 13
New Registration as a Regular Dealer ......................................................................................................... 13
Composition Tax Payer................................................................................................................................ 14
Amendment, cancellation and renovation of registration.......................................................................... 14
Supply of Goods and Services .......................................................................................................................... 15
Scope of Supply................................................................................................................................................ 15
Place of Supply ................................................................................................................................................. 16
Determining the Place of Supply of Goods ................................................................................................. 17
Determining the Place of Supply of Services .......................................................................................... 18
Time of Supply ................................................................................................................................................. 18
Value of Supply ................................................................................................................................................ 19
Mixed Supply and Composition Supply ....................................................................................................... 20
Mixed Supply.................................................................................................................................................... 20
Composite Supply ............................................................................................................................................ 21

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GST Using Tally.ERP 9

Transition to GST.............................................................................................................................................. 21
Registered Business ......................................................................................................................................... 22
Availed Input Tax Credit .............................................................................................................................. 22
Unavailed CENVAT credit and Input VAT on capital goods ......................................................................... 23
Availing the input credit held in closing stock ................................................................................................. 24
Invoicing ........................................................................................................................................................... 25
Tax Invoice ....................................................................................................................................................... 26
Bill of Supply..................................................................................................................................................... 27
Credit Note, Debit Note and Supplementary Invoice ...................................................................................... 27
Transportation of goods without issue of Invoice ........................................................................................... 28
Input Credit Mechanism .................................................................................................................................. 28
Entitlement of Input Tax Credit ....................................................................................................................... 29
Non Entitlement of Input Tax Credit ................................................................................................................ 30
Input Tax Credit Set Off.................................................................................................................................... 31
Input Tax Credit Claim ...................................................................................................................................... 31
GST Returns...................................................................................................................................................... 31
Regular Dealer.................................................................................................................................................. 32
Composition Tax Payer .................................................................................................................................... 32
Payment of Tax ................................................................................................................................................ 32
2. Getting Started with GST ............................................................................................................................ 34
Introduction ..................................................................................................................................................... 35
Enabling GST and Defining Tax Details............................................................................................................. 35
Transferring Input Tax credit to GST ................................................................................................................ 38
Intrastate Supply of Goods .............................................................................................................................. 42
Intrastate Inward Supply............................................................................................................................. 44
Intrastate Outward Supply .......................................................................................................................... 49
Interstate Supply.............................................................................................................................................. 58
Interstate Inward Supply............................................................................................................................. 58
Interstate Outward Supply.......................................................................................................................... 63
Return of Goods ............................................................................................................................................... 69
Purchase Returns ........................................................................................................................................ 69
Sales Returns ............................................................................................................................................... 72
Supplies Inclusive of Tax ............................................................................................................................. 76
Defining Tax Rates at Master and Transaction Levels...................................................................................... 78
Defining GST Rates at Stock Group Level. ................................................................................................... 79
Defining GST Rates at Stock Group Level. ................................................................................................... 83
 Defining GST Rate at Transaction Level. ..................................................................................................... 83
Hierarchy of Applying Tax Rate Details ....................................................................................................... 86
4. Recording Advanced Entries ....................................................................................................................... 87
Introduction ..................................................................................................................................................... 88
Accounting of GST Transactions....................................................................................................................... 89
Purchases from Composition Dealer........................................................................................................... 89
Purchases from Unregistered Dealers. ....................................................................................................... 92
Exports ...................................................................................................................................................... 100
Imports ...................................................................................................................................................... 105
Exempted Goods ....................................................................................................................................... 113
SEZ Sales .................................................................................................................................................... 117
Advance Receipts and Payments .............................................................................................................. 120
Conclusion...................................................................................................................................................... 143
4 GST Adjustment and Return Filing ............................................................................................................ 144
Mixed Supply and Composite Supply under GST ........................................................................................... 145
Mixed Supply of Goods ............................................................................................................................. 145
Composite Supply of Goods ...................................................................................................................... 149
GST Reports.................................................................................................................................................... 152
Generating GSTR-1 Report in Tally.ERP 9....................................................................................................... 153
Generating GSTR-2 Report in Tally.ERP 9....................................................................................................... 154
Input Tax Credit Set Off.................................................................................................................................. 155
GST Tax Payment ........................................................................................................................................... 160
Time line for payment of GST tax................................................................................................................... 160
Modes of Payment ......................................................................................................................................... 160
Challan Reconciliation .................................................................................................................................... 164
Exporting GSTR-1 return and uploading in GST portal. .................................................................................. 165
5. Getting Started with GST (Services) .......................................................................................................... 169
Introduction ................................................................................................................................................... 170
Determination of supply of services .............................................................................................................. 170
Determining the Place of Supply of Services ................................................................................................. 171
Enabling GST and Defining Tax Details........................................................................................................... 172
Transferring Input Tax credit to GST .............................................................................................................. 175

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GST Using Tally.ERP 9

Intrastate Supply of Goods ............................................................................................................................ 180

Intrastate Inward Supply........................................................................................................................... 180
Interstate Outward Supply........................................................................................................................ 184
Interstate Supply............................................................................................................................................ 188
Interstate Inward Supply........................................................................................................................... 188
Interstate Outward Supply of Services...................................................................................................... 195
Cancellation of Services ................................................................................................................................. 198
Cancellation of Inward Supplies ................................................................................................................ 199
Cancellation of Outward Supply of Services ............................................................................................. 204
Defining Tax Rates at Master and Transaction Levels............................................................................... 209
6. Recording Advanced Entries ..................................................................................................................... 217
Introduction .............................................................................................................................................. 217
Accounting Multiple Services in a Single Supply ....................................................................................... 219
Recording Partial Payment to Suppliers.................................................................................................... 224
Outward Supplies ...................................................................................................................................... 228
Recording Outward Supply with Additional Expenses .............................................................................. 228
B2C Supply of services (Business to consumers)....................................................................................... 232
Time of Supply of Services ........................................................................................................................ 235
Place of Supply of Services ........................................................................................................................ 237
Determining place of supply of services ................................................................................................... 237
Exempt Supply of Services under GST ....................................................................................................... 242
Export Supply of Services .......................................................................................................................... 245
Reverse Charge on Services under GST.......................................................................................................... 248
Advance Receipts from Customers under GST .............................................................................................. 267
Advance Receipt and issuing Invoice on same month .............................................................................. 267
Advance Receipt and issuing Invoice on different month......................................................................... 273
Reversal of GST on account of cancellation of advance receipt ............................................................... 280
Generating GSTR-1 Report in Tally.ERP 9....................................................................................................... 281
Generating GSTR-2 Report in Tally.ERP 9....................................................................................................... 282
Input Tax Credit Set Off.................................................................................................................................. 283
7. Migration to Tally.ERP 9 Release 6.0......................................................................................................... 291
Introduction ................................................................................................................................................... 292
Migration to Tally.ERP 9 Release 6.0 ............................................................................................................. 292
Activate Goods and Services Tax (GST) in Tally.ERP 9.................................................................................... 293
Set up GST rates ............................................................................................................................................. 294
Update Masters ............................................................................................................................................. 297
Update party GSTIN/UIN................................................................................................................................ 299
Creation of GST Duty ledgers. ........................................................................................................................ 299
Conclusion...................................................................................................................................................... 300