Unique Computer Institute
Computerized Accounting
Tax – GST – Composition
Activate GST for Composition
Dealers – Single and Multi-Registration
Set up Voucher Numbering from
a GST Perspective
Configure Voucher Numbering
for GST
Create Voucher Numbering
Series for GST Registrations
Set Up GST Rates and HSN/SAC
Details
Apply GST Rate and HSN/SAC
Details in the Company
Create Stock Items and Ledgers
for GST Composition
Apply GST Rate and HSN/SAC
Details in the Stock Item
Apply GST Rate and HSN/SAC
Details in Purchase Ledger
Update GST Details in Party
Ledger
Set Up Expense or Income
Ledger
Set Up Discount Ledger for
Stock Items or Services
Tax Rate Setup – GST
Composition
Purchase Under GST Composition
Local/Intrastate Purchase of
Taxable Goods and Services
Intrastate purchase of
taxable goods
Intrastate purchase of
taxable services
Interstate Purchase from
Regular Dealers
Purchase of Services with
Discount
Purchase of Services
Attracting Reverse Charge
Import of Goods and Services
under GST Composition
Purchase Returns under GST
Composition
Record Local Supply of Goods
or Services with GST
Local supply of goods |
Item Invoice mode
Local supply of services |
Accounting Invoice mode
GST Sales of Goods / Services
with Discount
Resolve Incomplete/mismatch in
Information in Vouchers
Tax rate/tax type not
specified
Taxability, Reverse charge
applicability, Taxable value, Rate of tax modified in voucher
Vouchers with
incomplete/incorrect adjustment details
Vouchers having Reverse
Charge and Other than Reverse Charge Supplies
Vouchers recorded before
01-Jan-2020 should not have State and Place of Supply as Ladakh
Sales by composition dealer
with interstate Party
Header | View Company
Information
Return View | View GST
Details in the Format of the Portal
Nature View | View GST
Details as per Company Books
Uncertain Transactions
(Corrections needed)
Getting Ready for GSTR-4
Filing
Resolve Uncertain
Transactions
View Vouchers Accepted as
Valid
Once you have packed the essentials for your GST Composition journey, is here to ensure that your journey goes as smoothly as possible.
Let us begin with a few baby steps. First and foremost, you will have to enable GST and save the details of your GST registration in the Company master. These details, such as State,
GSTIN/UIN, and Registration Type, will be reflected in your transactions, and you can easily print them in your invoices.
Moreover, your business might have multiple GST registrations (GSTINs) to cater to multiple geographies or business verticals. understands your special needs, and accordingly it allows you to conveniently save the details of all your registrations within the same company. After saving the details, you can select the relevant registration while recording transactions, wherever needed.
The next order of business is setting up GST rates. As a Composite dealer, you can save the tax rates for your purchases, according to the nature of goods or services that your business deals with. offers you the flexibility to apply these rates at various levels, depending on your comfort and business requirements. For example, you can configure the GST rates up front for your company, or you can apply the rates directly in the purchase transaction.
What’s more, will also help you select the order or hierarchy in which you want to apply the tax rates. For example, if some of your stock items belong to a single stock group and fall under a common tax rate, then you can directly set the tax rate in the stock group. This rate will be subsequently applied to all the corresponding stock items.
Set Up GST Details for Parties
Once you have set up the GST details for your company, it is time to save the GST details for your parties as well. will help you create ledgers for all your customers or suppliers, and store the required details, such as GSTIN/UIN, Registration Type, Place of Supply, Assessee of Other Territory information, and so on.
UCI-AC will also help you comply with department guidelines for maintaining GST transactions. For example, the department requires proper voucher numbering for your GST invoices, and accordingly will help you in easily creating and maintaining multiple series of voucher numbers.
Create or Update Masters for GST
UCI-AC also provides you with a host of other masters and ledgers that will help you record your transactions as a GST Composite dealer in peace. For example, you have a purchase ledger for GST, GST duty ledgers, service ledgers, expense/income/round-off ledgers, discount ledgers, and so on. You can also update your stock items and stock groups for GST, and easily manage HSN/SAC and the corresponding tax rates.
Activate GST for Composition Dealers – Single and Multi-Registration
To use GST as a Composite Dealer , you have to first enable GST for your company. After that, you can easily save the GST details such as State, GSTIN/UIN, Registration Type, and so on. Once these details are saved in the Company, they will be reflected in your GST transactions. Once GST is activated in the Company, GST-related features will be available in ledgers, stock items, and transactions, and you can conveniently generate GST returns for your business.
Furthermore, if your company has multiple GST registrations (GSTINs), then you can conveniently save the details of all your registrations within the same company, and select the relevant registration while recording transactions.
1. Open the company and press F11 (Features)> Enable Goods and Services Tax (GST) > Yes.
2. Explore additional options by pressing F12 (Configure). You will find options related to Place of Supply and Registration Name.
3. Fill in the relevant details for GST registration and e-Way Bill.
a. State: The State selected during Company Creation will be reflected here. If you update the State here, it will also be updated in the Company and existing transactions.
b. Registration type: Select the Registration type as Composition.
c. Assessee of Other Territory: If your business is located in an Exclusive Economic Zone (Other Territory). then you can enable this option. GST details will be applied accordingly in your masters and transactions.
d. Create another GST Registration for the Company: Use this option to save multiple GST registrations within the same company. After saving the details, you can select the relevant registration while recording transactions, wherever needed.
4. Press Ctrl + A to save the details.
After saving the GST registration, you will have the choice to create a voucher numbering series for this particular registration:
If you press Yes, you will be taken to the Chart of Accounts, where you can easily create the voucher numbering series.
Set up Voucher Numbering from a GST Perspective
UCI-AC provides you with the best options to configure your voucher numbering as per GST requirements. When you are uploading invoices to the GSTN portal, the department expects the voucher numbers to be unique and to follow a proper sequence. For example, if you had recorded a sales transaction with the voucher number as 11, and a sales return takes place, then voucher number 12 should be assigned to the sales return or debit note. This will ensure that the overall voucher numbers follow the proper flow of the sales cycle.
Based on your business requirement, you can select your preferred method of voucher numbering, such as Automatic, Manual, or Multi-User Auto. If you select the Automatic method of voucher numbering, then you also have the benefit of either retaining the original voucher numbers or renumbering the vouchers. Subsequently, while recording transactions, you can select the relevant voucher type, and then the voucher number series will be automatically selected.
Moreover, if your business consists of multiple GST registrations, then you can create and maintain special voucher numbering series for all your GST registrations. For example, using a single series for sales, you can maintain and track both sales transactions and sales returns. While creating or altering a numbering series, you can set the Series Name and Method of Voucher Numbering.
What’s more, you can also choose to use a common series for all your registrations. You can set this option from the Company Features (Set/Alter Company GST Rate and Other Details > Use common voucher numbering series for all GST Registrations).
Configure Voucher Numbering for GST
1. Gateway of Tally > Create/Alter > Voucher Type.
Alternatively, press Alt + G (Go To) > Create/Alter Master > Voucher Type.
2. Select the voucher type from the List of Voucher Types, or create a new one, as needed. To learn more about voucher types.
3. Configure voucher numbering:
a. Method of Voucher Numbering: Select the required method as per your business and GST requirements.
b. Numbering behaviour on insertion/deletion: You will see this option if you have selected Automatic or Multi-user Auto as the Method of Voucher Numbering. Generally, when you insert or delete a transaction, your existing voucher numbers might get affected. However, you now have the option to either retain the original voucher numbers or renumber the vouchers, as per your requirement.
c. Show unused vch nos. in transactions for Retain Original Voucher No. behaviour: When you delete transactions or mark them as optional, then the corresponding voucher numbers might remain unused. This option will help you view such unused voucher numbers during voucher entry and reuse the numbers, as required.
4. Press Ctrl + A to save the details.
Create Voucher Numbering Series for GST Registrations
UCI-AC provides you with the flexibility to create multiple voucher numbering series either from the voucher type or from the Chart of Accounts. If your business consists of multiple GST registrations, then you can use this feature to create and maintain special voucher numbering series for all your GST registrations. Once you have created the required voucher numbering series, you can select it while recording transactions.
1. Press Alt + G (Go To) > Create/Alter Master > Voucher Type.
Alternatively, go to Gateway of Tally > Create/Alter > Voucher Type.
2. Select the voucher type from the List of Voucher Types, or create a new one, as needed. To learn more about voucher types.
3. Press F12 (Configure) > Set Method of Voucher Numbering > Yes, and Define multiple numbering series for vouchers > Yes. Press Ctrl + A to save.
4. On the Voucher Type Alteration screen, set the option Define multiple numbering series for vouchers to Yes. The Define Numbering Series screen will appear.
a. Select an existing series or create a new one.
b. Provide a relevant Series Name. For example, if your business has a branch office (say, in Bangalore), then you can name the series after the branch and save the details accordingly.
c. Configure voucher numbering:
i. Method of Voucher Numbering: Select the required method as per your business and GST requirements.
ii. Numbering behaviour on insertion/deletion: You will see this option if you have selected Automatic or Multi-user Auto as the Method of Voucher Numbering. Generally, when you insert or delete a transaction, your existing voucher numbers might get affected. However, you now have the option to either retain the original voucher numbers or renumber the vouchers, as per your requirement.
d. Press Ctrl + A to save the details.
1. Press Alt + G (Go To) > Chart of Accounts > Voucher Type.
Alternatively, go to Gateway of Tally > Chart of Accounts > Voucher Type.
2. Select Voucher Types from the List of Masters.
3. Select the required voucher types and press Alt + S (Create Vch No. Series). A common numbering series will be created for the voucher types that you select.
4. Update the details in the Numbering Series Details screen:
a. Provide a relevant Series Name. For example, if your business has a branch office (say, in Bangalore), then you can name the series after the branch and save the details accordingly.
b. Configure voucher numbering:
i. Method of Voucher Numbering: Select the required method as per your business and GST requirements.
ii. Numbering behaviour on insertion/deletion: You will see this option if you have selected Automatic or Multi-user Auto as the Method of Voucher Numbering. Generally, when you insert or delete a transaction, your existing voucher numbers might get affected. However, you now have the option to either retain the original voucher numbers or renumber the vouchers, as per your requirement.
c. Press Ctrl + A to save the details.
Set Up GST Rates and HSN/SAC Details
After enabling GST as a Composite dealer, you can proceed to set up the GST rates for your goods and services. offers you the flexibility to apply GST rates at one or more levels. Depending on your business need, you can apply the tax rates upfront at the company level, if your goods or services fall under a common tax rate. Alternatively, you can choose a different level such as ledger, accounting group, stock item, stock group, or even apply the rates directly in the transaction.
Apart from applying GST rates at multiple levels, you have the additional benefit of deciding the order in which you want to apply the rates. You can select either the ledger or the stock item as the primary source for applying GST rates, and choose one of the following two orders:
· Option 1: Purchase Ledger > Accounting Group > Stock Item > Stock Group > Company
· Option 2: Stock Item > Stock Group > Purchase Ledger > Accounting Group > Company
Apply GST Rate and HSN/SAC Details in the Company
1. Open the company and press F11 (Features) > Enable Goods and Services Tax (GST) > Yes, and then enable the option Set/Alter Company GST Rate and Other Details.
2. Explore additional options by pressing F12 (Configure). You will find options related to HSN/SAC and GST rate details, Reverse charge calculation, and so on.
Fill in the relevant details for HSN/SAC and GST.
a. HSN/SAC Details: You have three options to choose from.
i. Specify Details Here: Once you select this option, you will be able to enter the details right here in Company GST Details.
ii. Use GST Classification: This option allows you to select a previously created GST Classification, or create one on the spot. The details will be applied accordingly.
iii. Specify in Voucher: If you are not aware of the details at the moment, and if you want to add the details directly in the transaction, then you can select this option.
b. GST Rate Details: Like in the previous field (HSN/SAC Details), you have the same three options to choose from.
c. Additional Configuration:
i. Source of GST rate details in transactions <anchor-name>source-gst-details</anchor-name>: This option helps you decide the order in which you want to apply the rates. You can select either the ledger or the stock item as the primary source for applying GST rates, and choose one of the following two orders:
1. Ledger: Sales/Purchase Ledger > Accounting Group > Stock Item > Stock Group > Company
2. Stock Item: Stock Item > Stock Group > Sales/Purchase Ledger > Accounting Group > Company
3. The GST rate will be applied in the selected order. For example, if you have selected Stock Item, and the GST rate has not been set in the Stock Item, then it will be picked up from the next level, which is Stock Group.
ii. Show GST Advances for adjustments in transactions: This option will help you in easily adjusting GST advances while recording transactions. You do not have to manually book tax liability and then again manually adjust it using a journal voucher. Once you enable this option, your advance receipts will be listed in the sales transaction under Bill-wise Details, and you can easily adjust the receipts directly.
3. Press Ctrl + A to save the details.
Create Stock Items and Ledgers for GST Composition
UCI-AC provides you with a host of masters and ledgers that will help you record your GST transactions in peace. For example, you have sales and purchase ledgers for GST, GST duty ledgers, service ledgers, expense/income/round-off ledgers, discount ledgers, and so on. You can also update your stock items and stock groups for GST, and easily manage HSN/SAC and the corresponding tax rates.
Apply GST Rate and HSN/SAC Details in the Stock Item
, you can create stock items and specify the GST rate and other HSN/SAC details for calculating the tax during transactions.
1. Press Alt + G (Go To) > Create/Alter Master > Stock Item.
Alternatively, Gateway of Tally > Create/Alter > Stock Item (under Inventory Masters).
2. Select the stock item from the List of Stock Items, or create a new one, as needed.
a. Fill in the relevant details for HSN/SAC and GST.
i. HSN/SAC & Related Details: You have three options to choose from.
ii. Specify Details Here: Once you select this option, you will be able to enter the relevant details right here in Stock Item Creation/Alteration.
iii. Use GST Classification: This option allows you to select a previously created GST Classification, or create one on the spot. The details will be applied accordingly.
b. Specify in Voucher: If you are not aware of the details at the moment, and if you want to add the details directly in the transaction, then you can select this option.
i. GST Rate & Related Details: Like in the previous field (HSN/SAC Details), you have the same three options to choose from. Select Specify Details Here and enter the relevant information.
3. Press Ctrl + A to save the details.
Apply GST Rate and HSN/SAC Details in Purchase Ledger
If your business sells many items with the same tax rate, then you can conveniently apply the tax rate and other GST details directly in a common sales ledger. This way, you only have to select the relevant sales ledger while recording the transaction, and the GST details will be applied seamlessly.
Similarly, if your business purchases many items with the same tax rate, then you can apply the GST details directly in a common purchase ledger and select it while recording a purchase.
1. Press Alt + G (Go To) > Create/Alter Master > Ledger.
Alternatively, Gateway of Tally > Create/Alter > Ledger.
2. Select the required purchase ledger from the List of Ledgers, or create a new one, as needed.
3. Fill in the relevant details for GST.
a. HSN/SAC & Related Details: You have four options to choose from.
i. As per Company/Group: This option will help you re-use the HSN/SAC details if you had already updated them in the company or accounting group.
ii. Specify Details Here: Once you select this option, you will be able to enter the relevant details right here in Ledger Creation/Alteration.
iii. Use GST Classification: This option allows you to select a previously created GST Classification, or create one on the spot. The details will be applied accordingly.
iv. Specify in Voucher: If you are not aware of the details at the moment, and if you want to add the details directly in the transaction, then you can select this option.
b. GST Rate & Related Details: Like in the previous field (HSN/SAC Details), you have the same four options to choose from. Select Specify Details Here and enter the relevant information.
4. Press Ctrl + A to save the details.
Update GST Details in Party Ledger
With UCI-AC, you can easily set up the ledgers of your suppliers and customers from a GST perspective.
1. Press Alt + G (Go To) > Create/Alter Master > Ledger (under Accounting Master).
Alternatively, Gateway of Tally > Create/Alter > Ledger.
2. Select the required party ledger from the List of Ledgers, or create a new one, as needed.
3. Select the party Registration type and enter the GSTIN/UIN.
4. Press Ctrl + I (More Details) > GST Registration Details, and fill in the relevant details.
a. Assessee of Other Territory: Set this option to Yes if the party is belongs to Exclusive Economic Zone (Other Territory).
b. Ignore prefixes and suffixes in Doc No. for reconciliation: If your party uses prefixes or suffixes in the Doc No. but your business does not use them, then it might cause mismatch during reconciliation. This option will help you ignore such prefixes or suffixes, and lead to a smooth reconciliation.
c. Press Ctrl + A to save the details.
5. Press Ctrl + A to save the details.
If your business deals with many items with the same tax rate, then you can conveniently apply the tax rate directly in the duty ledger. Depending on the nature of your transaction (interstate or intrastate), you can update your IGST or SGST/UTGST and CGST ledgers. This way, you only have to select the relevant duty ledger while recording the transaction, and the GST details will be applied seamlessly.
1. Press Alt + G (Go To) > Create/Alter Master > Ledger (under Accounting Master).
Alternatively, go to Gateway of Tally > Create/Alter > Ledger.
2. Select the required duty ledger from the List of Ledgers, or create a new one, as needed.
3. Update the Type of Duty/Tax, Percentage of calculation, and other relevant details.
4. Press Ctrl + A to save the details.
Set Up Expense or Income Ledger
, you can create ledgers to record expenses or income like recycling waste sales, packaging charges, delivery charges, transportation costs, and so on. It can be shown in the voucher and is added to the overall item or service value.
1. Press Alt + G (Go To) > Create Master > type or select Ledger > and press Enter.
Alternatively, Gateway of Tally > Create > Ledger > and press Enter.
2. In the Under field, select:
· Direct Incomes/Indirect Incomes for income.
· Direct Expenses/Indirect Expenses for expenses.
3. Set Type of Ledger as Not Applicable.
4. Set Include in Assessable Value calculation as Not Applicable.
5. Set GST applicability as Not Applicable.
6. Accept the screen. As always, press Ctrl + A to save.
Set Up Discount Ledger for Stock Items or Services
, you can create ledgers for discounts on services and stock items. It can be shown in the voucher and it impacts the overall item or service value.
1. Press Alt + G (Go To) > Create Master >type or select Ledger > and press Enter.
Alternatively, Gateway of Tally > Create > Ledger > and press Enter.
2. In the Under field, select Indirect Expenses.
3. Set Type of Ledger to Discount.
4. Set Include in Assessable Value calculation as Not Applicable.
5. Set GST applicability as Not Applicable.
6. . Accept the screen. As always, press Ctrl + A to save.
Tax Rate Setup – GST Composition
UCI-AC gives you the facility to quickly set up GST rates for your stock items, using the GST Rate Setup option. Based on the rates defined, the tax amount is auto-calculated in the purchase invoice. These rates will not be considered for calculating the tax on sales.
You must enable GST in your company to provide the GST rates. You can also set the GST rates for a particular price range or slab rate for multiple stock items. Alternatively, you can define the tax rate for each stock item from the stock item master.
For example, let us set GST rates for stock items.
1. Press Alt + G (Go To) > type or select GST Rate Setup > and press Enter.
2. Alternatively, Gateway of Tally > Display More Reports > GST Reports > GST Utilities > GST Rate Setup.
3. Select Stock Items from the List of Masters.
· Select the stock item, and press Alt + S (Update GST Details) to provide the applicable tax rates. You can press Spacebar to select multiple stock items. Set the tax rates and save.
· To view the history of tax rate changes, press Alt + W GST Rate Details (History To specify further GST-related details, press F12 Configure.
4. In order to remove a tax rate, use the option Alt + R Remove GST Details). You can clear the rate of multiple items by selecting them using Spacebar..
Purchase Under
GST Composition
If your business has a turnover of less than 1.5 Cr in the case of goods and 50 Lakh in the case of services, then you need to register yourself as a Composite Dealer. As a composite dealer, you can make payments and file taxes on a quarterly basis, instead of monthly. The rate of tax varies from 1% to 6% on the total turnover and you cannot claim Input Tax Credit. Similar to a regular dealer, you can purchase goods or services locally, purchase goods or services with discounts, return purchases, purchase services attracting reverse charge, and purchase import of goods and services.
You can record such purchases with or without reverse charge by selecting the registration type as Composition while creating the company. You will also be able to configure stock items, tax ledgers, party ledgers, and purchase ledgers as required for a Composite Dealer.
Local/Intrastate Purchase of Taxable Goods and Services
As a composite dealer, you will purchase goods or services locally or from an interstate party. enables you to configure the taxability of stock items, tax ledgers, and party ledgers with taxability and accounts group as required for purchase under composition GST and record a purchase voucher.
Intrastate purchase of taxable goods
You can record an intrastate purchase of taxable goods , using a Purchase voucher in Item Invoice mode.
1. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
2. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
3. In Party A/c name, select the supplier’s ledger or the cash ledger.
4. In Purchase ledger, select the common purchase ledger. To learn how to create a purchase ledger for GST Composition Purchase, refer to the Purchase Ledger section of Initial setup for GST (Composition)
5. Select the required stock items, and specify the quantities and rates.
6. Select the central and state tax ledgers. As a composite dealer, you are not eligible for ITC (input tax credit). Any tax paid on purchases should be considered as purchase cost and must be added to the stock item cost. In order to do so, you need to create tax ledgers as mentioned below:
· Grouped under Direct Expenses or Purchase Accounts or Indirect Expenses (with Inventory values are affected set to No).
· Type of Ledger set to Central Tax for CGST and State Tax for SGST ledgers.
· Appropriate tax values in purchase invoice set to Yes, to arrive at the purchase cost based on the GST rates specified for each stock item.
7. Enter the Narration, if required, and as always press Ctrl + A to save the Purchase voucher.
The invoice received from composition or unregistered dealers will not have tax in it. Hence, you need not select tax ledgers on such purchases.
Intrastate purchase of taxable services
You can record an intrastate purchase of taxable services , using a Purchase voucher in Accounting Invoice mode.
1. Open the Purchase voucher in Accounting Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
2. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
3. Under Particulars, select the services purchased ledger predefined with the tax rates, and enter the amount.
4. Select the central and state tax ledgers. As a composite dealer, you are not eligible for ITC (input tax credit). Any tax paid on purchases should be considered as purchase cost and must be added to the stock item cost. In order to do so, you need to create tax ledgers as mentioned below:
· Grouped under Direct Expenses or Purchase Accounts or Indirect Expenses (with Inventory values are affected set to No).
· Type of Ledger set to Central Tax for CGST and State Tax for SGST ledgers.
· Appropriate tax values in purchase invoice set to Yes, to arrive at the purchase cost.
5. Enter the Narration, if required, and as always press Ctrl + A to save the Purchase voucher.
The invoice received from composition or unregistered dealers will not have tax in it. Hence, you need not select tax ledgers on such purchases.
Interstate Purchase from Regular Dealers
In your business, if you purchase goods or services from an interstate supplier, then you can record such purchases under GST composition using a Purchase voucher. enables you to configure the taxability of stock items, tax ledgers, and party ledgers with taxability and accounts group as required.
1. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
2. Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
3. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
4. In Party A/c name, select the interstate supplier’s ledger.
5. In Purchase ledger, select the common purchase ledger. 5 Select the required stock items, and specify the quantities and rates.
6. . Select the integrated tax ledger. As a composite dealer, you are not eligible for ITC (input tax credit). Any tax paid on purchases should be considered as purchase cost and must be added to the stock item cost. In order to do so, you need to create tax ledgers as mentioned below:
· Grouped under Direct Expenses or Purchase Accounts or Indirect Expenses (with Inventory values are affected set to No).
· Type of Ledger set to Integrated Tax.
· Appropriate tax values in purchase invoice set to Yes, to arrive at the purchase cost.
7. Enter the Narration, if required, and as always press Ctrl + A to save the Purchase voucher.
Similarly, you can record the purchase of services from regular dealers using Purchase voucher in Accounting Invoice mode.
Purchase of Services with Discount
In some business scenarios, you might be getting discounts on purchases of services from the supplier. enables you to record such transactions using a Purchase voucher in
Accounting Invoice mode. You will also be able to configure purchase ledgers and discount ledgers with reverse charge calculation, accounts group, and GST applicability as required.
1. Open the Purchase voucher in Accounting Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
2. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
3. 3 Select the party ledger with the Registration type set to Regular.
If the Registration type is not Regular, the transaction will appear under Not relevant for returns section of GSTR-4 and GST CMP-08.
4. Under Particulars, select the services purchased ledger in which the option Is reverse charge applicable is set to Yes, and tax rates are defined.
a. On the ledger alteration screen, press F12 (Configuration) and set Enable Reverse Charge calculation to Yes.
5. Enter the amount.
6. . Select the discount ledger created for services. As a composite dealer, you are not eligible for ITC (input tax credit). Any tax paid on purchases should be considered as purchase cost and must be added to the stock item cost. In order to do so, you need to create tax ledgers as mentioned below:
· Grouped under Direct Expenses or Indirect Expenses.
· GST Applicability is set to Not Applicable.
· Include in Assessable Value Calculation is set to GST.
· Appropriate to is set to Services.
7. Enter the discount Rate percentage and Amount.
8. . Enter the Narration, if required, and as always press Enter to save the Purchase voucher.
Purchase of Services Attracting Reverse Charge
If you purchase services that attract Reverse Charge then you can record such composition GST purchases using a Purchase voucher . You will also be able to configure the service ledger with reverse charge calculation as required.
1. Open the Purchase voucher in Accounting Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
2. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
3. Select the party ledger with the Registration type set to Regular.
If the Registration type is not Regular, the transaction will appear under Not relevant for returns section of GSTR-4 and GST CMP-08.
4. Under Particulars, Select the services purchased ledger in which the option Is reverse charge applicable is set to Yes, and the tax rates are defined.
a. On the ledger alteration screen, press F12 (Configuration) and set Enable Reverse Charge calculation to Yes.
5. Enter the amount.
6. . Enter the Narration, if required, and as always press Ctrl + A to save.
Import of Goods and Services under GST Composition
In your business, you can be making purchases of goods and services from suppliers that are outside of India. You can record such transactions . Imports are considered similar to the inter-state suppliers and therefore, IGST is calculated for such transactions. You also have to pay Customs Duty on such purchases. All the taxes and duties on an import are paid on a reversecharge basis, that is, the liability to pay tax is on the recipient of the supply of goods instead of the supplier.
You can record the import of goods , using a Purchase voucher in Item Invoice mode.
1. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
2. Select the Party A/c name with Country other than India.
3. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier. 4. In Purchase ledger, select the purchase ledger in which the Type of Supply is set to Goods.
4. Set Override Taxable Value to Yes and enter the total amount in Taxable Value.
· Calculate the value of customs duty according to the rate specified by the department, and add it to the original taxable value.
Set Provide GST/e-Way Bill details to Yes, to enter additional details regarding the import.
Enter the Narration, if required, and as always press Ctrl + A to save.
You can record the import of services , using a Purchase voucher in Accounting Invoice mode.
1. Open the Purchase voucher in Accounting Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
2. Select the Party A/c name with Country other than India.
3. Enter the Supplier Invoice No. and Date as per the sales invoice received from the supplier.
4. Under Particulars, select the services purchased ledger in which the Type of Supply is set to Services and enter the Amount.
If the party ledger is from a country other than India, and the purchase ledger has Type of Supply as Service, the tax is calculated under reverse charge.
5. Enter the Narration, if required, and as always press Ctrl + A to save.
Purchase Returns under GST Composition
In some business scenarios, after you have made a purchase, there can be a situation where you return the entire supply or some of the items from the supply to the supplier due to varied reasons such as the quality of supply, surplus supply, late delivery, and so on. If the purchase was recorded with GST, you will have to record the Purchase Returns with GST as well to correctly adjust your expense and taxation in reports. , you can record Purchase Returns with GST using a Debit Note and also mark the reason for issuing the note.
1. Press Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Debit Note and press Enter.
Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Debit Note and press Enter.
2. In Party A/c name, select the party from whom the original purchase was made and press Enter. The Dispatch Details screen will appear.
3. Under Original Invoice Details enter the Original Invoice No. and Date of the original purchase transaction against which you are recording a purchase return.
The following is an example of a Purchase voucher with Supplier Invoice No. LPG01 and Date: 1-Nov-22. Taxable value is Rs. 8,00,000/- with GST of Rs. 1,44,000/- recorded on 2-Nov-22.
As per the Purchase voucher, you can enter the Original Invoice Details in the Debit Note as shown in the image below:
Enter stock item details for debit note.
4. Name of Stock Item – Select the stock item.
a. Specify Quantity and Rate.
b. Select the required tax ledgers. As a composite dealer, you are not eligible for ITC (input tax credit). Any tax paid on purchases should be considered as purchase cost and must be added to the stock item cost. In order to do so, you need to create tax ledgers as mentioned below:
o Grouped under Direct Expenses or Purchase Accounts or Indirect Expenses (with Inventory values are affected set to No).
o Type of Ledger set to Central Tax for CGST, State Tax for SGST ledgers, and Integrated Tax for IGST.
o Appropriate tax values in purchase invoice set to Yes, to arrive at the purchase cost based on the GST rates specified for each stock item.
5. Set the option Provide GST details to Yes, and select the reason the purchase returns from the List of Reasons.
When the seller has not uploaded the credit note, the buyer has to upload the debit note from the viewpoint of outward supply. Hence, the List of Reasons for Issuing Note is the same in a debit note and credit note.
o 01-Sales Return: When there is a return of goods or services after the purchase.
o 02-Post Sale Discount: When a discount is allowed on goods or services after the purchase.
o 03-Deficiency in services: When there is a deficiency in services (like a quality issue) after purchase.
o 04-Correction in Invoice: When there is a change in the invoice raised that leads to a change in the tax amount.
o 05-Change in POS: When there is a change in place of supply that leads to a change in the tax amount.
o 06-Finalization of Provisional assessment: When there is a change in price or rate after the department issues a notification about the finalized price of the goods or services.
o 07-Others: Any other nature of the return.
6. Enter the Narration, if required, and as always press Ctrl + A to save.
Sales under the Composition scheme are not much different than the regular GST. Like any other business, you need to sell goods or services to earn revenue. In the Composition scheme, the sales of goods and services are made within the state. You can sell the goods or services with discounts and records in case you have sales returns. As per business practice, after the sale of goods or services, you must print the invoices with all relevant GST details.
You must register as a composite dealer if your business generates less than 1.5 crores in revenue from the production or trade of goods or less than 50 lakhs from services. As a composite dealer, in contrast to a regular dealer, you might benefit from things like making payments and filing returns on a quarterly schedule rather than a monthly one. But there are also some limitations. You are not eligible to use the input tax credit as a composite dealer. Tax rates on the whole sales turnover range from 1% to 6%.
Every business involves the sales of goods or services which can be either cash or credit sales. , you can record the supply of goods using a sales voucher and you can also decide the mode to record the transaction. While recording for the sale of goods, you can record such a sale using Item Invoice mode. In Item Invoice mode, you can provide an item, quantity, and rate details. Similarly, you can use the accounting invoice mode if you are selling services. You do not have to charge tax on every invoice, as under the Composition scheme the tax is calculated based on the turnover. You can record the sales return using credit notes.
, you can record all these transactions by selecting the registration type as Composition while creating the company.
Record Local Supply of Goods or Services with GST
As a composite dealer, you can supply goods or services within the state. You don’t have to charge tax for every transaction as under the composition scheme you are not eligible to collect tax on your supplies. However, you need to pay tax only on your total sales turnover which is also nominal in the range of 1% to 6%.
In this section
1. Local supply of goods | Item Invoice mode
2. Local supply of services | Accounting Invoice mode
Local supply of goods | Item Invoice mode
When recording the sale of goods, choose cash or bank for cash sales and party ledger for credit sales. , you can record sales of goods or stock items using the Item Invoice mode where you can provide the stock item details, quantity, and rate.
1. Open the sales voucher in the Item Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
b. Press Ctrl + H (Change Mode) > select Item Invoice.
2. Specify the buyer details.
a. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You can create the Party A/c on the fly by pressing Alt + C.
b. Dispatch Details: Enter the Dispatch Details, as needed and press Enter.
You can choose to enable the options for Order Details by pressing F12 (Configure).
c. Party Details: You can update the buyer details while recording the transaction and print the same in the invoice.
d. As always, you can press Ctrl + A to save and proceed.
3. In the Sales ledger, select the common sales ledger.
4. Enter the stock item details.
a. Name of Item: Select the stock item.
b. Specify Quantity and Rate.
c. In case you do not see the required item in the list, you can create the stock item on the fly by pressing Alt + C.
5. Do not select tax ledgers, as in the Composition scheme you need to pay tax on your turnover.
6. . Provide Narration, if needed, and press Ctrl + A to save.
Now that you have recorded a local supply of goods under the Composition scheme of GST, you can see the transaction in the Outward Supplies (including Exempt Supplies) of CMP-08.
Local supply of services | Accounting Invoice mode
When recording service sales, choose cash or bank for cash sales and party ledger for credit sales. , record sales of services and the total amount using the Accounting Invoice mode. An accounting ledger is not required as there is no stock item to allocate.
1. Open the sales voucher in the Accounting Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
b. Press Ctrl + H (Change mode) > select Accounting Invoice.
2. Specify the buyer details.
a. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You can create the Party A/c on the fly by pressing Alt + C.
b. Dispatch Details: Enter the Dispatch Details, as needed and press Enter.
You can choose to enable the options for Order Details by pressing F12 (Configure).
c. Party Details: You can update the buyer details while recording the transaction and print the same in the invoice.
d. As always, you can press Ctrl + A to save and proceed.
3. Under Particulars, select the service ledger and enter the Amount.
4. Do not select tax ledgers, as in the Composition scheme you need to pay tax on your turnover.
5. Provide Narration, if needed, and press Ctrl + A to save.
Now that you have recorded a local supply of goods under the Composition scheme of GST, you can see the transaction in the Outward Supplies (including Exempt Supplies) of CMP-08.
Once the sales voucher is recorded for the supply of goods and services, you can print the voucher immediately or later. If you need to print the voucher right away, enable the Print voucher after saving option from the sales voucher type. You can configure your sales invoice with the GST information and print it after previewing it.
1. In the sales invoice, press Ctrl + P.
Alternatively, Alt + P (Print) > Current. The report title appears as per GST rules on the Print screen.
2. Press C (Configure) > set Show GST Analysis and Show HSN/SAC details as Yes.
3. The GST rates and HSN/SAC details get updated in the invoice.
a. Print the voucher with GST details.
b. Press I (Preview) to check the invoice before printing, if needed.
c. Press P (Print) to print.
You have printed a sales voucher with GST and HSN/SAC details.
GST Sales of Goods / Services with Discount
You can supply goods or services with discounts. The discount can be either on the total item amount or on the individual item. you can record the supply of goods and services with a discount.
The below procedure is for the sale of services with a discount.
While recording the sales voucher,
1. Select the ledger for discounts created under Indirect Expenses. Ensure to set the ledger as below.
· Is GST applicable set to Not Applicable.
· Include in assessable value calculation for is set to GST.
· Appropriate to set to Services.
There are 3 options in Include in assessable value calculation for Appropriation.
· Goods
· Goods and Services
· Service
· When you select Services and Goods and Services Method of calculation is getting set to Based on Value. However, for Goods, the user needs to choose the Method of calculation.
· Based on Quantity – apportions the expense value based on quantity of the stock item. More quantity means more share of expense value.
· Based on Value – apportions the expense value based on value of each stock item/service ledger more value means more share of expense value.
1. Enter the discount percentage or amount.
2. Provide the necessary details and press Ctrl + A to save.
The printed invoice is shown below.
When you supply goods or services, there can be instances of sales return for the entire supply or some of the items from the supply. There can be multiple reasons for such sales returns such as low-quality products, damaged goods, late delivery, surplus delivery and so on. You can record the sales return using a Credit Note and also mention a reason for such a return. The sales returns can be after or before receiving the payment and the accounting method for both such cases are different. , you can record both instances of sales returns.
1. Open the Credit Note in Item Invoice mode.
a. Press Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Credit Note > and press Enter.
Alternatively, Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Credit Note > and press Enter.
b. Press Ctrl + H (Change Mode) > select Item Invoice.
2. Specify the buyer details.
a. Party A/c name: select the party to whom the goods were initially sold and press Enter.
b. Receipt Details: Enter the Receipt Details, as needed.
Under Original Invoice Details, update the Original Invoice No. and Date of the original sales transaction against which you are recording a sales return and press Enter.
c. Party Details: update the original buyer details.
3. Select the Sales ledger to allocate the stock items.
4. Enter the stock item details.
a. Name of Item – Select the stock item that you have received as a sales return. b. Specify Quantity and Rate.
5. Set the option Provide GST details to Yes.
6. . Select the Reason for Issuing Note and enter the details in the Statutory Details screen.
7. Provide Narration, if needed, and press Ctrl + A to save.
The GST CMP-08 report displays details of inward supplies attracting reverse charge and all the outward supplies made by a GST composition dealer in a given period.
1. Gateway of Tally > Display More Reports > Statutory Reports > GST > Returns > GST CMP-08.
Alternatively, press Alt + G > type or search GST CMP-08 > press Enter.
2. Press F2 to change the report period, as required.
3. Click F12: Configure and enable the option Show break-up of nett values?.
4. Press Alt + F5 (Detailed) to view the breakup of sales, purchase and the corresponding returns.
If you have more than one tax rate in the return period, based on the date of applicability, the breakup of net value appears for taxable sales.
There are two sections in this report:
· Returns summary, which is a snapshot of the business operations in the given period.
· Particulars, which displays transactions participating in the returns.
This section provides a summary of all transactions recorded in the reporting period. You can drill down from each row to view the details.
total number of vouchers for the period – Drill down to view the Statistics report that displays the voucher types with corresponding voucher count.
· Included in returns – Drill down to view the list of transaction types with corresponding voucher count, that are forming part of the report.
· Participating in the returns: Drill down to view the list of transaction types with corresponding voucher count, that are forming part of GST CMP-08 return.
· No direct implication in return tables: Drill down to view the list of transaction types with corresponding voucher count, that are considered in GST CMP-08 report, but do not appear in the return. Here purchases and purchase returns that do not attract reverse charge will appear, with corresponding voucher count. Not relevant for returns – Drill down to view the category of vouchers that are excluded from the report.
· Displays voucher types that are not considered for GST CMP-08 with corresponding voucher count.
· Excluded by User: Displays transactions manually excluded from the list of included or uncertain transactions. Drill down and click I: Include Vouchers, if required. Based on the information in the voucher, it will move to either included or uncertain.
· No GST Implications: Displays the count of receipts, payments, and journal vouchers that do not have any GST implication.
Based on the available transactions, the relevant categories appear with the voucher count.
· Incomplete/Mismatch in information (to be resolved) – Displays the count of all vouchers for which information required for filing returns is missing in the invoice. You can correct exceptions in the vouchers before printing GST CMP-08 returns.
Resolve Incomplete/mismatch in Information in Vouchers
The exceptions are listed in the order of priority, based on the importance of the information to generate the returns. You need to update the missing information and resolve the mismatches to include them in the returns. Exceptions in this section
1. Tax rate/tax type not specified
2. Taxability, Reverse charge applicability, Taxable value, Rate of tax modified in voucher
3. Vouchers with incomplete/incorrect adjustment details
4. Vouchers having Reverse Charge and Other than Reverse Charge Supplies
5. Vouchers recorded before 01-Jan-2020 should not have State and Place of Supply as Ladakh
6. Sales by composition dealer with interstate Party
7. Information required for generating table-wise details not provided
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 Tax rate/tax type not specified, and press Enter.
2. Select the Taxability, if not provided.
3. Enable Reverse Charge if applicable, and provide the tax rates.
4. Press Enter to save.
Taxability, Reverse charge applicability, Taxable value, Rate of tax modified in voucher
Displays the count of transactions in which the taxability, applicability of reverse charge, or rate of tax defined in the ledger master has been changed in the transaction.
1. Select Taxability, Reverse charge applicability, Taxable value, Rate of tax modified in voucher, and press Enter.
2. Select the relevant transaction, press Alt + R (Resolve), and enter the details manually. Press Alt + J (Accept as is) if you do not want to change any information.
3. Press Enter to accept. Similarly, accept the required vouchers.
4. Press Ctrl + A to accept.
Vouchers with incomplete/incorrect adjustment details
Displays the count of journal vouchers in which the Nature of adjustment selected is incorrect.
1. Select Voucher with incomplete/incorrect adjustment details, and press Enter.
2. Select the Nature of Adjustment and accept the voucher.
3. Press Ctrl + A to accept.
Vouchers having Reverse Charge and Other than Reverse Charge Supplies
Displays the count of transactions in which both reverse charge and other than reverse charge supplies are selected.
1. Select the exception Vouchers having Reverse Charge and Other than Reverse Charge Supplies, and press Enter.
2. Select the transaction and press Enter to view the voucher alteration screen. Make the necessary corrections in the transaction and save the transaction.
Vouchers recorded before 01-Jan-2020 should not have State and Place of Supply as Ladakh
Displays the count of transactions in which Ladakh is selected as the Place of supply and party’s State, in transactions recorded on or before 31-Dec-2019.
1. Select the exception Vouchers recorded before 01-Jan-2020 should not have State and Place of Supply as Ladakh, and press Enter.
2. Select the transaction and press Enter to view the voucher alteration screen. Press F12 to view the Voucher Configuration screen of sales invoice, and set the option Provide supplier details? to Yes to update the State and Place of Supply.
3. Select the party’s State and save the transaction.
Sales by composition dealer with interstate Party
Displays the count of transactions recorded with party located outside the state, as such transactions are not allowed by GSTN.
1. Select the exception Sales by composition dealer with interstate Party, and press Enter.
2. Select the State, Place of Supply, and Registration Type. You can change the address details by pressing Backspace and setting the option Set/Alter Address to Yes.
UCI-AC gives you an overview of the GSTR-4 report, where you can see the company information on top, the Return view, and the Nature view of the transactions. You can also view the total number of vouchers along with the number of vouchers under different headings in the Return Summary of the report. GSTR-4 contains different sections or tables for recording multiple types of supplies, such as taxable, exempted, and even nil-rated. You can also learn about the GSTR-4 filing along with the descriptions for each section of this report.
GSTR-4 is a tax return that has to be filed annually by a composite dealer on the GSTN portal. The filing of a tax return might sound difficult, but with UCI-AC, your journey becomes easy. You only have to record your GST transactions , as usual, and your transactions appear in sections of the GST returns based on their nature as of the date you record them. You can just verify and export the details and upload them to the portal, and all your GST data from appear seamlessly on the portal.
To file GSTR-4, you must upload the details of your GST sales in the relevant tables or sections on the portal. UCI-AC’s GSTR-4 report is perfectly mapped to the tables of the GSTR-4 form, and all your GST sales are automatically assigned to the relevant tables. Once your details are up and running , you can rest assured that these details seamlessly reflect on the portal as well. You can view the report as Return view which is the mirror of how your data appears in the portal, and also in the Nature view which is the mirror of your data in your company books.
We understand how important it is to balance the compliance and the business aspects of your transactions. Hence, comes with a GSTR-4 report that is tailored to meet your many requirements in one place. You can not only view your key GST figures as per the portal but also view how these numbers are reflected in your books.
Moreover, if there are any errors or uncertainties in your GST details, you can easily identify and resolve them .
1. Open GSTR-4 report.
Press Alt + G > type or search GSTR-4 > press Enter.
Alternatively, go to Gateway of Tally > Display More Reports > GST Reports > GSTR-4.
2. Click F12: Configure and enable the option Show breakup of Tax Amount, to view the taxes in separate columns.
GSTR-4 has the following sections, which address your specific needs with great simplicity.
a. Header – Company Information
b. Return View – Mirror of the Portal
c. Nature View – Mirror of Company Books
Header | View Company Information
The header section in GSTR-4 captures some of your key information, such as the Company name, GST Registration, Period, and so on. If required, you can change one or more of these necessary details, and the contents of the reports get updated accordingly.
What’s more, if your business consists of multiple GST registrations/GSTINs, then the GSTR-4 report provides you with an amazing view of your combined GST details and activities across registrations. However, also provides you with the flexibility to view GSTR-4 for only one registration, from any of your companies.
View GSTR-1 for a specific GSTIN
Press F3 (Company/Tax Registration) and select the required company or registration from the list.
Return View | View GST Details in the Format of the Portal
The Return View section is your personal map of the GSTN portal. Every section or table on the portal is faithfully represented in this section so that you can conveniently share the data with the tax department. The best part is that you don’t have to do anything extra from your end. Depending on the nature of a particular transaction, captures all your transaction in the respective sections or tables.
The Return View section displays the following sections, based on your transactions during the period.
3. Inward Supplies from Registered Supplier (Other Than Reverse Charge)
4. Inward Supplies from Registered Supplier (Reverse Charge)
5. Inward Supplies (unregistered)
6. Import of Services
7. Debit/Credit Notes (Registered)
8. Debit/Credit Notes (Unregistered)
9. Tax on Outward Supplies
10. Advance Amount Paid
11. Adjustment of Advances Paid
12. Interest, Late Fee, Penalty and Others
Inward Supplies from Registered Supplier (Other Than Reverse Charge)
This section displays the total value of purchases from a registered supplier and the value of the tax on purchases not attracting reverse charge.
Inward Supplies from Registered Supplier (Reverse Charge)
This section displays the total value of purchases from a registered supplier and the value of the tax on purchases attracting reverse charges.
Inward Supplies (Unregistered)
This section displays the total value of purchases from an unregistered supplier.
This section displays the total value of services imported.
Debit/Credit Notes (Registered)
This section displays the sales or purchase returns to registered dealers through credit or debit notes.
Debit/Credit Notes (Unregistered)
This section displays the sales or purchase returns to unregistered dealers through credit or debit notes.
This section displays the value of the tax on purchases.
This section displays the payment of any advance amount.
This section displays any adjustments done against the advances paid.
Interest, Late Fee, Penalty and Others
This section displays any interest, late fee, or penalty that is levied for not filing GSTR-4 on or before the due date.
Nature View | View GST Details as per Company Books
Within the context of the GSTR-4 report, provides you with a quick and easy way to compare your return data with the data in your company books. To view these details, you simply have to change the view from Return View to Nature View by pressing F5. The Nature View section provides a general categorization of your GST sales, based on the nature of the transaction. You can view essential GST groups such as Outward Supplies and Inward RCM Supplies, with a breakup of taxable, exempt, nil-rated, and non-GST supplies.
Using the Nature View, you can quickly compare the GST details with the details in your company books, that is, in the Profit & Loss report, Sales Register, or Chart of Accounts. This helps you greatly in identifying and resolving any errors in your data before you can finalize the return.
In the Nature View section, you can find that all your outward supplies and inward RCM supplies are conveniently categorized based on your transactions during the period.
If you have more than one tax rate in the return period, based on the date of applicability, the breakup of nett value appears for taxable sales.
There are two sections in this report:
Returns summary, which is a snapshot of the business operations in the given period.
Particulars, which displays transactions participating in the returns.
This section provides a summary of all transactions recorded in the reporting period. You can drill down on each row to view the details.
The Total Vouchers section gives you a bird’s eye view of the key numbers and details across your
GST transactions. You get a clear picture of the number of transactions included in the return, the transactions that are ready for export, the transactions where corrections are needed, and so on.
You can drill down from each of these sub-sections to take a closer look at the transaction details.
Included in Return gives you an overall count of the vouchers included in GSTR-4. You can further drill down for a detailed breakup of the type of vouchers involved. For example, you can see how many sales returns are included in the return. The best part is that you can further drill down to see the full list of sales returns that have been recorded during the specified period, and also set the Effective Date and GST Status, as needed.
Not Relevant for this Return gives you an overall count of the vouchers that are not required to be filed in GSTR-4 in the selected period. This includes transactions of other registrations, returns, or return periods, and also includes non-GST transactions (such as payroll, inventory, and order vouchers) and transactions that were consciously excluded by you.
You can further drill down to view the different categories of transactions. For example, you can see how many non-GST transactions are present. The best part is that you can further drill down to see the full list of voucher types, such as credit notes, journals, payments, and receipts.
Uncertain Transactions (Corrections needed)
Uncertain Transactions gives you an overall count of the vouchers with GST-related errors. You can drill down further from the section to view all uncertain details and correct them. Even if you have hundreds of transactions, you can easily find and fix a particular error. Refer to the Resolve Uncertain Transactions section to know more.
Incomplete/Mismatch in information (to be resolved)
Displays the count of all vouchers for which information required for filing returns is missing in the invoice. You can correct exceptions in the vouchers before exporting GST returns.
Getting Ready for GSTR-4 Filing
Apart from assured compliance, easy design, and great speed, the GSTR-4 report comes with the following features, which make your return filing experience as smooth as possible.
1. Resolve Uncertain Transactions
2. View Vouchers Accepted as Valid
Resolve Uncertain Transactions
Sometimes, you might experience problems in GSTR-4 filing, if there are any errors or missing details in your GST transactions. When you have hundreds or thousands of transactions, it might get difficult to keep a tab on all the supplies and ensure that all the correct details are in place. However, with at your fingertips, you do not have to worry about such uncertain details at all.
The GSTR-4 report comes with an easy, intuitive classification of all such GST-related errors. You can drill down from the Uncertain transactions section to view all such uncertain details and correct them easily. Even if you have hundreds of transactions, finding and fixing a particular error is pretty easy. Moreover, if you think that certain details are correct, and you want to proceed with these details, also provides you with the option to accept such transactions as is.
All your uncertain transactions will be conveniently placed in one of the following groups:
Transactions with Incomplete/Mismatch in Information
Inward and Outward Supplies
Tax and Other Adjustments
Within the above groups, you will find your uncertain details in one of the following sub-groups:
o Invalid or Missing Information
o Mismatch in Information Between Masters and Transactions
o Mismatch Within the Transaction
Based on your requirement, you can drill down from one of the uncertain sections to view the full list of transactions. For example, if you want to view all the transactions where the Taxable amount is overridden in transaction, then you can drill down from the Taxable Amount is overridden in transaction section and check the full list.
Moreover, if you think that the overridden Taxable amount is correct, and you want to proceed with those details, then you can select the required entry and press Alt + J (Accept As Is).
View Vouchers Accepted as Valid
In the GSTR-4 report,
1. Press Ctrl + J > select Transactions Accepted as Valid > press Enter.
It displays the list of vouchers that you have accepted as valid and included in the returns.
2. To move the vouchers out of this list and make the required corrections,
o Press Alt + J (Undo Accept As Is) and press Enter.
The voucher moves to the relevant exceptions.
Tax – GST - Regular
GST Master Create Party Ledgers for GST
Create/Alter GST Classification Based on HSN/SAC
Create/Alter GST Classification for Cess Based on
Quantity or Value
Expenses, Incomes, Non-Revenue Accounts, and Invoice
Rounding Ledgers Under GST
Ledger to Round-off the Invoice Value
Expense Ledger Value to Form Part of Assessable Value
in the Invoice
GST Applicability for Ledgers of Non-Revenue Accounts
Ledger to Book Expenses with GST
To correct errors in the imported data
View GST Rate Setup for Masters
Specify GST Rate Details for Masters
Manage HSN Codes/SAC and Tax Rates
Order in which HSN code and tax rate are applied for
goods
Specifying HSN code and tax rate
Order in which SAC and tax rate are applied for
services
Set HSN Code for Stock Items or Stock Groups
View HSN/SAC Summary in GSTR-1
Validate GSTIN/UIN and HSN/SAC Online
Prerequisites for Online Validation of GSTIN/UIN and
HSN/SAC Information
Reasons to validate GSTIN/UIN Info online
Online GSTIN validation for single party
Online GSTIN validation for multiple parties in bulk
Local and Interstate Purchase of Goods and Services with
GST
Record Local Purchase of Goods and Services
Record Interstate Purchase of Goods and Services
Record Purchase with Multiple GST Registrations
Record Purchase of Items with Different Tax Rates in
a Single Voucher
Change in the Assessable Value of Purchases Under GST
GST on Inward Remittance of Service Value
Record a Debit Note for Purchase Returns
Record Import of Goods under GST
Include Customs Duty in the Taxable Value
Record a Journal Voucher to Increase Tax Liability
Record Payment towards Customs Duty and Integrated
Tax
Claim Input Tax Credit for Tax Paid on Imports
GST Purchases with Nil Rate, Exempt, SEZ, Other
Territories, Deemed Export, and High Sea
GST Purchase from Other Territory
Avail Input Tax Credit (ITC) on Purchase of Capital Goods
Reversal of ITC on manufacturing exempt supplies
Record Purchase of Fixed Assets/Capital Goods Under GST
Create Capital Goods/Fixed Assets ledger
Reversal of ITC on Manufacturing Exempt Supplies
GST Invoice Support for Material In
Record Services Availed in Another State as an Intrastate
Transaction
Record Purchase of Services with GST
Record Purchase of Services as Expenses
Record Indirect Incomes Under GST
Configure Income Ledger for GST
Record Expenses with GST in Purchase, Payment or Journal
Voucher
Record an Expense in a Purchase voucher
Record an Expense in a Journal voucher
Record an Expense in a Payment voucher by selecting
Party Details
Account for TDS or TCS on Purchases Under GST
Local & Interstate Supply of Goods and Services with
GST
Record Local Supply of Goods and Services
Record Interstate Supply of Goods and Services
Supplies when Buyer and Consignee are Different
Record Supply of Goods with Different Tax Rates in
the same Invoice
Record Vouchers and Adjust Allocation Difference
using Voucher Class
GST Sales with Discount at Item Level
Record GST Sales of Service with Discount
Sales Returns and Price Hike after Supply
Sales Return in the same GST return period
Sales Return in the subsequent GST return period
Supplies with Cess, Discount, MRP Inclusive of GST, Slab
Rate
Record Sales of Items with Cess
GST Sales of Goods and Services with Item Level
Discount
Invoices with MRP Inclusive of Tax
Sales of Stock Items with Slab-wise Tax Rates
Mixed Supply, Composite Supply, and Sale of Fixed Assets
Configure Expense ledger for GST Sales
Calculation of GST Based on Slab Rate, Cess on Quantity
and Value
GST on Slab Rate by Considering the Value of
Apportioned Additional Ledger
GST on Slab Rate by Excluding the Value of
Apportioned Additional Ledger
Define GST Rate Based on Slab Rate or Price Range –
Same Item of Different Price per Unit
Interstate Supplies to Embassy or UN Body
Supplies Through e-Commerce Operator
Record Supply of Works Contract Services
Solar and Renewable Energy Projects
Courier Services to Places Outside of India
Purchase of Transport Expenses
To check if HSN is provided in the stock item or
ledger
Override Assessable Value, HSN Code, Party Details, Cess
Valuation Method in Sales Invoice
Override Assessable Value in Sales Invoice
Update Party Details in Invoice
Change the Valuation Type of Cess in Invoice
Journal Entry for GST Adjustment
Record Vouchers for GST Adjustments
Adjustments Against Input Tax Credit (ITC) under GST
GST Adjustment for Ineligible Input Tax Credit
Setting up purchase ledger with ITC Ineligibility
Reversal of ITC due to Ineligibility
GST Adjustment for Increase in Tax Liability
GST Adjustment for Decrease in Tax Liability
Interest, Penalty, Late Fee, and Others in GST
Natures of Adjustment for increase in tax liability
due to Interest, Penalty, Late Fee and Others
Adjustment for Opening Balance
Account for ISD Credit Under GST
Account for Ineligible Input Tax Credit under GST
Ineligibility of Tax Credit During Purchases
Eligibility of Tax Credit During Purchases but
Reversed Later Due to Ineligibility
Transfer Tax Credit of SGST to UTGST for Ladakh
Transfer the SGST credit to Current Assets
Transfer the SGST Credit from Current Assets to UTGST
Ledger
Transferring Tax Credits of VAT, Excise, and Service Tax
to GST
Record Advances Received Under GST
Set Up UCI-AC to Set Off GST Advance Receipts in
Sales Invoices
Raise Tax Liability for Advances Received
Provide Opening Balance for Unadjusted GST Advances
Received
Record Refund of Advances Received
Record Advance Payments Under GST
Set Up UCI-AC to Account for GST Advance Payments
Raise Tax Liability for Advances Paid
Provide Opening Balance for Unadjusted GST Advances
Record Refund Received from Supplier Against Advance
Payments
GST
Master Create Party Ledgers for GST
You can create party ledgers for GST for the
parties with whom you purchase and sell goods and services, with the GST
registration details.
You can create supplier Ledger, customer
Ledger and enter the GSTIN/UIN based on the party type.
You can set GST rates in the ledger
grouped under non-revenue accounts, for example, Current Assets and Current
Liabilities. If you have created the party ledgers under groups other than
Sundry debtors, Sundry creditors, Bank, Cash, and Branch/divisions:
1. Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively,
press Alt + G (Go To) > Create Master > Ledger > and press Enter.
2. Enter
the Name of the supplier’s ledger.
3. Select
Sundry Creditors in the Under field.
4. Set
the option Maintain balances
bill-by-bill to Yes.
If you do
not see this option, press F12 (Configure)
> set Maintain balances Bill-by-Bill to
Yes.
5. Enter
the Default credit period, if any.
6. Select
the party Registration type, and enter the GSTIN/UIN.
7. Enable
the option Set/Alter GST Details to
open the GST Details screen.
·
Set the option Assessee of Other Territory to Yes
if the party is belongs to Exclusive
Economic Zone (other territory).
·
If the supplier is an e-commerce operator, then
enable the option Is e-commerce operator.
8. Accept
the screen. As always, you can press Ctrl
+ A to save.
9. Accept
the screen. As always, you can press Ctrl
+ A to save.
1.
Gateway
of Tally > Create > type
or select Ledger > and press Enter.
Alternatively,
press Alt + G (Go To) > Create Master > Ledger > and press Enter.
2.
Enter the Name of the customer’s ledger.
3.
Select Sundry
Debtors from the List of Groups
in the Under field.
4.
Set the option Maintain balances bill-by-bill to Yes.
5.
Enter the Default credit period, if any.
6.
Select the party Registration type, and enter the GSTIN/UIN.
7.
Enable the option Set/Alter GST Details to open the GST Details screen.
·
Set the option Assessee of Other Territory to Yes
if the party is belongs to Exclusive
Economic Zone (other territory).
·
If the supplier is an e-commerce operator, then
enable the option Is e-commerce operator.
·
Accept the screen. As always, you can press Ctrl + A to save.
8.
Accept the screen. As always, you can press Ctrl + A to save.
GSTIN/UIN Format
The GSTIN/UIN
entered in party ledger gets validated by considering the formats prescribed
for all the party types. If a GSTIN/UIN
does not fall in the supported formats, a warning message appears as shown
below:
If you have provided a valid GSTIN/UIN
(the format that is newly introduced by the department), you can ignore this
message and save the ledger. The transactions recorded using this ledger will
appear as exceptions in the Information required for generating table-wise
details not provided section of GSTR-1,
GSTR-2, GST CMP-08.
You can do the following to include such
transactions in the returns.
·
Press Alt
+ V (Accept GSTIN/UIN)
·
Press Enter
to skip the GSTIN/UIN validation and
accept the voucher.
GST Classification is a powerful tool for
recording tax rates and other details for categories of goods and services that
attract a common GST rate.
For example, you can create a GST
Classification based on a particular HSN/SAC. When this classification is used
in relevant masters and transactions, the tax details of the goods or services
will be automatically captured. In the future, if the department changes the
tax rate for any HSN, then you can simply alter the GST Classification and
assign the new rate.
Moreover, you can create GST
Classifications for an accounts-only company as well. Depending on the grouping
used for GST Classification, you can tag them to Sales, Purchase, Services, and
Income & Expense ledgers.
Create/Alter GST
Classification Based on HSN/SAC
1. Press
Alt + G (Go To) > Create/Alter > GST Classification.
2. Specify
the relevant details under the HSN/SAC & Related Details and GST Rate &
Related Details sections.
a. In
the HSN/SAC & Related Details and GST Rate & Related Details fields,
select the Specify Details Here option.
b. Specify
the applicable HSN/SAC and Description.
c. Specify
the applicable GST Rate.
3. Press
Ctrl + A to save the details.
Now you can use the created classification
to update the rates in other masters, transactions, or reports, as needed. You also
have the flexibility to apply the GST classification for multiple masters using
the GST Rate Setup report.
Create/Alter GST Classification for Cess Based on Quantity
or Value
1. Press
Alt + G (Go To) > Create/Alter > GST Classification.
2. Specify
the relevant details under the HSN/SAC & Related Details and GST Rate &
Related Details sections.
a. In
the HSN/SAC & Related Details and GST Rate & Related Details fields,
select the Specify Details Here option.
b. Specify
the applicable HSN/SAC and Description.
c. Specify
the applicable GST Rate.
d. Specify
the Cess Valuation Type, Cess Rate, and per Unit rate.
Press Ctrl + A to save the details.
Now you can use the created classification
to update the rates in other masters, transactions, or reports, as needed. You
also have the flexibility to apply the GST classification for multiple masters
using the GST Rate Setup report.
Expenses, Incomes, Non-Revenue Accounts, and Invoice
Rounding Ledgers Under GST
Supply of goods or rendering of services
may involve additional expenses, which can either be part of stock items or
service value, or can be charged separately. When such an expense is recovered
from customers, it is treated as an income. As a GST registered dealer, you
have to book such incomes under GST. UCI-AC provides you with the facility to
do so and also create ledgers with the required GST applicability to round-off
the invoice value. You can also enable the applicability of GST for non-revenue
accounts as well.
Ledger to Round-off the Invoice Value
You can create a ledger to round off the
invoice value to adjust the total amount of an invoice so that it ends in a
round figure. This is done for a variety of reasons, including simplifying
accounting records, making it easier to calculate taxes, and so on.
1. Press
Alt + G (Go To) > Create Master > type or select Ledger > and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger > and press Enter.
2. Enter
the Name of the expense ledger.
3. Select
Direct Expenses or Indirect Expenses in the Under field.
4. Set
Type of Ledger to Invoice Rounding.
5. Select
the Rounding method and enter the Rounding limit.
The option GST applicability will be set to Not Applicable.
6. Accept
the screen. As always, press Ctrl + A
to save the ledger.
Select this
ledger in the invoice to round-off the invoice value.
Expense Ledger Value to Form Part of Assessable Value in
the Invoice
While accounting for expenses and incomes,
the ledgers have to be grouped either under Direct Expenses, Indirect
Expenses, Direct Incomes or Indirect Incomes. You can create an
expense ledger to add its value to the assessable value of the invoice.
1. Press
Alt + G (Go To) > Create Master > type or select Ledger > and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger > and press Enter.
2. Enter
the Name of the expense ledger.
3. Select
direct or indirect expenses or incomes in the Under field.
4. GST
will be calculated after considering the expense or income value in the
invoice, only when the options are set as follows:
·
Type of
Ledger – Not Applicable
·
Include
in assessable value calculation for – GST
For the option Appropriate to, select:
·
Goods,
if the expense or income value has to be included in the stock item cost.
·
Services,
if the expense or income value has to be included in the service value.
·
Both,
if the expense or income value has to be included in stock item cost or service
value.
5. Select
the Method of Calculation based on
the selection made for the option Appropriate
to.
6. If
you set it to Goods, select the Method of Calculation as:
·
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.
·
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.
The option GST applicability will be set to Not Applicable.
7. Accept the screen. As always, you can press Ctrl + A to save the ledger.
Similarly, you can use this ledger while
creating purchase invoices.
GST Applicability for Ledgers of Non-Revenue Accounts
, you can enable GST applicability for
ledgers of non-revenue accounts.
1. Press
Alt + G (Go To) > Create Master > type or select Ledger > and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger > and press Enter.
2. Press
F12 (Configure) and set the option For Non-Revenue Accounts also to Yes, and accept the screen.
Set
GST applicability as Applicable and
enter the GST details.
Select the Type of supply as:
·
Services,
if the ledger is used to record sale of service. By default, the type of supply
is set to Services.
·
Goods, if the ledger is used to record sale of goods.
Accept the screen. As always, you can
press Ctrl + A to save the ledger.
Ledger to Book Expenses with GST
You can create an expense ledger with GST
applicable to record expenses that are subject to the Goods and Services Tax
(GST).
1. Press
Alt + G (Go To) > Create Master > type or select Ledger > and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger > and press Enter.
2. Select
direct or indirect expenses in the Under
field.
3. Select
the Type of Ledger as Not Applicable and Include in Assessable Value Calculation as Not Applicable.
4. Set
GST applicability as Applicable and enter the GST details.
5. Select
the Type of supply as:
·
Services,
if the ledger is used to record sale of service. By default, the type of supply
is set to Services.
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-go.
1. Update
Party GSTIN
2. Import
Party GSTIN
·
Gateway of Tally > Display More Reports >
Statutory Reports > GST Reports > Update Party GSTIN.
Alternatively, press Alt + G (Go To) > type or select Update Party GSTIN > and press Enter.
·
Select the group and ledger for which you want
to update the GSTIN/UIN.
·
In the Update Party GSTIN/UIN screen, enter the
GSTIN/UIN number for each party.
·
Press F12 Configure), set the option show
ther territory to Yes if the party is belonging to Exclusive Economic Zone
(other territory).
Press F8
(All Ledgers) to list All Parties.
Once you have updated the GSTIN/UIN for
your parties, you can print the GSTIN details in your invoices for filing
returns.
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 UCI-AC and want to import the
information to update the party ledgers.
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
press F1 (Help) > TDL & Add-On > F4
(Manage Local TDLs).
In the TDL Configuration screen, set the
option Load selected TDL files on startup to Yes.
·
Select or Specify the path of Add on in File Selection field.
·
Accept the screen. As always, you can press Ctrl + A to save.
Import Party GSTIN appears under GST
Reports.
·
Gateway of Tally > Display More Reports >
Statutory Reports > GST Reports > Update Party GSTIN.
Alternatively,
press Alt + G (Go To) > type or select Update Party GSTIN > and press
Enter.
·
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.
·
Press Alt + E (Export) to export the
information in excel format.
·
Open the exported file, specify GSTIN details
for the parties, and save the file. I
·
n UCI-AC Gateway of Tally > Display More
Reports > Statutory Reports > GST Reports > Import Party GSTIN.
·
Specify the name of the MS Excel file to be
imported in the field Name of the file to be imported (Excel).
·
Specify the name of the sheet containing
information in MS Excel file in the field Sheet name.
·
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 UCI-AC. Also, the name of Country,
State and Registration Type specified in the MS Excel file must match the
spellings given.
To correct errors in the imported data
·
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 UCI-AC
·
Check and make necessary corrections in the
Errors sheet. Save the file.
·
Import the file again, and specify the sheet
name as Errors. The corrected information is imported this time.
·
Goods, if the ledger is used to record sale of goods.
·
Accept the screen. As always, you can press Ctrl + A to save the ledger.
GST Rate Setup report is a one-stop report
that will help you view or set up the GST rate details for all your relevant
masters with great ease.
Even when your business deals with a
tremendous number of stock items or ledgers, you do not have to worry about
opening each master and updating the details separately. With the GST Rate
Setup report, you can conveniently update the GST Rate as well as HSN/SAC
details for your inventory masters, such as stock items and stock groups, as
well as accounting masters, such as ledgers and groups.
In some cases, you might have to update
the details for all the stock items under a particular HSN/SAC. For example, a
notification might be issued by the department regarding the HSN/SAC of
computers and peripheral goods. Accordingly, UCI-AC provides you with the
option to view the GST Rate Setup report for stock items for a particular
HSN/SAC. This will help you quickly update the details for all the stock items
tagged under a single HSN/SAC.
What’s more, the GST Rate Setup report
also provides you with the flexibility to configure the report and view
additional information such as reverse charge applicability, input tax credit
eligibility, or source of GST Rate and HSN/SAC Details.
View GST Rate Setup for Masters
1. Press
Alt + G (Go To) > GST Rate Setup.
2. Select
the type of master for which you want to open the report, and press Enter.
Let us
consider Stock Items in this procedure.
The GST
Rate Setup report appears as shown below:
By
default, the report displayed the stock items GST Rate-wise.
3. Press
F5 (HSN/SAC-wise), if you want to view the stock items as per the HSN/SAC
assigned in the masters.
4. Press
Ctrl + H (Change View) > Stock Item-wise, if you want to view the report
with the list of only Stock Items and the respective details.
Further,
you also have the flexibility to change the parent group of the stock items, by
pressing F9 (Change Parent Group).
5. Press
F6 (HSN/SAC) and select the HSN/SAC, if you want to view the stock items for a
specific HSN/SAC
Similarly,
you can view the GST Rate Setup report for other masters such as stock groups,
ledgers, and groups.
Specify GST Rate Details for Masters
1. Press
Alt + G (Go To) > GST Rate Setup.
2. Select
the type of master for which you want to open the report, and press Enter.
Let us
consider Stock Items in this procedure.
The GST
Rate Setup report appears as shown below:
3. Select
the stock item that you want to update and press Alt + S (Update GST Details).
4. As
per your business needs, you can select multiple stock items by pressing
Spacebar.
Specify
the relevant GST details.
a. In
the HSN/SAC & Related Details and GST Rate & Related Details fields,
select the Specify Details Here option.
b. Specify
the applicable HSN/SAC and Description.
c. Specify
the applicable GST Rate.
d. Specify
the history of GST rate and HSN/SAC details, as needed, by pressing Alt + H
(HSN/SAC Details (History)) or Alt + W (GST Rate Details (History)).
e. Press
Ctrl + A to save the details.
The
details will be updated in the GST Rate Setup report as well as in the relevant
masters.
Similarly, you can update the details for
other masters such as stock groups, ledgers, and groups.
View and update masters without tax rates
The GST Rate Setup report will also help
you to easily view and update the masters where the details of GST rate are
missing.
1. Go
to GST Rate Setup > Ctrl + B (Basis of Values) > Method of showing
masters > Without Tax Rate.
2. Press
Ctrl + A to save the setting.
3. The
GST Rate Setup report appears as
shown below, where you can view the stock item without GST rate details.
4. Select
the required stock items and press Alt +
S (Update GST Details).
5. Specify
the applicable GST Rate and other
relevant details.
6. Press
Ctrl + A to save the details.
The details will be updated in the GST Rate Setup report as well as in the
relevant masters.
Additional Flexibilities in GST Rate Setup
The GST Rate Setup report provides you
with many flexibilities in F12
(Configure) that will help you view and update your masters in greater detail.
Source of GST and HSN/SAC Details
After enabling the Show Source of GST Details and Show
Source of HSN/SAC Details options
in in F12 (Configure), you can view
the report with the Source of GST and
HSN/SAC Details. These details will help you understand the source from
which the GST or HSN/SAC-related details will be considered when you record
transactions.
If needed, you can update the source
details by selecting the required stock items or ledgers and pressing Alt + H (Update Source Details).
Input Tax Credit Eligibility
After enabling the Show Eligible for ITC option in in F12 (Configure), you can view the Eligible for ITC column, which will help you understand the
applicability of input tax credit in the relevant masters.
Reverse Charge Applicability
After enabling the Show Applicable for Reverse Charge option in in F12 (Configure), you can view the Applicable for Reverse Charge column,
which will help you understand the applicability of reverse charge in the
relevant masters.
In this way, the GST Rate Setup report will help you quickly access and update GST
rate and HSN/SAC details with great flexibility.
Manage HSN Codes/SAC and Tax Rates
You can specify and manage HSN codes/SAC
and tax rates at different levels for the goods or services provided by your
business. This is a flexibility provided for ease of use to accommodate your
business needs.
It is recommended that HSN code/SAC and
tax rate should be specified at the same level. In case you have specified
these at different levels, you can remove it.
If HSN code/SAC and tax rates are specified at stock item level and only HSN
code/SAC is specified at accounting ledger/group level, tax will not be
calculated while recording the invoice.
Order in which HSN code and tax rate are applied for goods
1. Transaction
(cannot specify HSN code at the level)
2. Ledger
3. Ledger
Group
4. Stock
Item
5. Stock
Group
6. Company
Specifying HSN code and tax rate
Based on your business requirements, you
can provide HSN codes and tax rates at different levels.
Business Requirement
1. Most
of the goods have the same HSN code and tax rate.
o
Definition At company level
2. A
group of items have the same HSN code and tax rate.
o
Definition At company level for all items.
o
Definition At stock group level only for the
set with different HSN and tax rate
3. A
few items have different HSN codes and tax rates.
o
Definition At company level for all items.
o
Definition At stock item level for the items
with different HSN code and tax rate.
4. Want
to apply the same HSN code and tax rate for different transaction types.
o
Definition At sales/purchase ledger group
level for all items
5. Want
to segregate sales or purchase of items with the same HSN code and tax rate.
o
Definition At sales/purchase ledger level
6. Change
the tax rate (not HSN code) during transaction.
o
Definition At transaction level
After defining a tax rate at the company
level, if a group of items attracts another rate, specify at the stock group
level. For the items in the group, the rate specified at the group level is
applicable. After specifying tax rates at the stock group level, if a few items
in the group attract a different rate (or the rate set at the company level),
override using rate setup at the stock item level. For these items, the rates
specified at the stock item level are applicable.
You can specify tax rates at the sales or
purchase ledger level, or at the ledger group level. This helps in situations
where a special tracking as per the nature of tax is required. Then the rate
defined at the ledger level will override the tax rates set at the company,
stock group, or stock item levels.
For ease of maintenance and appropriate
use of tax rates, specify the rates at the level where you mark the goods as
taxable.
A similar order is applicable in the case
of HSN codes.
In case you need to specify a separate tax
rate for an item in a specific transaction, you can do so, and the rate
specified during the transaction will get the highest priority.
Order in which SAC and tax rate are applied for services
1. Transaction
(cannot specify HSN code at the level)
2. Ledger
3. Ledger
Group
4. Stock
Item
5. Stock
Group
6. Company
Based on your business requirements, you
can provide SAC and tax rate at different levels.
Business Requirement
1. Most
of the services have the same SAC and tax rate
o
Tax Rate Definition At company level
2. A
group of services have the same SAC and tax rate
o
Tax Rate Definition At company level for all
services
o
Tax Rate Definition At service ledger level
for those services alone
3. Want
to apply the same SAC and tax rate for different transaction types
o
Tax Rate Definition At sales/purchase ledger
group level
4. Want
to segregate sales or purchase of services with the same SAC and tax rate
o
Tax Rate Definition At sales/purchase ledger
level
5. Change
the tax rate (not SAC) during transaction
o
Tax Rate Definition At transaction level
After defining a tax rate at the company
level, if a few services attract a different rate, specify the rate in the
service ledger. For the services, the rates specified at the service ledger
level are applicable.
You can specify tax rates at the sales or
purchase ledger level, or at the ledger group level. This helps in situations
where a special tracking as per the nature of tax is required. Then the rate
defined at the ledger level will override the tax rates set at the company
level or at the service ledger level.
For
ease of maintenance and appropriate use of tax rates, specify the rates at the
level where you mark the service as taxable.
A similar order is applicable in the case
of SAC.
In case you need to specify a separate tax
rate for a service in a specific transaction, you can do so, and the rate given
during the transaction will get the highest priority.
According to the mandate:
·
If your business has a turnover under INR 5
Crores, a 4-digit HSN Code for each item in a B2B Invoice is mandatory.
However, for B2C Invoices, HSN Code is not mandatory.
Moreover, you will need to upload HSN
Summary with 4-digit HSN Codes for GSTR-1. If some items have HSN Code that
exceeds 4 digits, you may choose to mention HSN code accordingly, say, 6-digit
HSN Code or 8-digit HSN Code.
·
If your business has a turnover exceeding INR 5
Crores, it is mandatory to have a 6-digit HSN Code for each item in both – B2B
and B2C Invoices.
Further, you will need to upload HSN
Summary with 6-digit HSN Codes for GSTR-1.
·
If you are a Composition Scheme dealer, HSN
Summary or details are not required in CMP-08 and GSTR-4, and therefore, it
will not reflect in those return reports.
The following table summarizes the HSN
Code mandate for businesses:
·
B2B and B2C Transaction Type is 4-Digit
HSN Code for Businesses with Turnover up to INR 5 Crores is Mandatory
·
B2B and B2C Transaction Type is 6-Digit
HSN Code for Businesses with Turnover Exceeding INR 5 Crores is Mandatory
Set HSN Code for Stock Items or Stock Groups
, you can set or update HSN for Stock Items
or Stock Groups in order to comply with the mandate by the GST authority.
1. Press
Alt + G (Go To) > GST Rate Setup.
2. From
the List of Masters, select Stock Items, and press Enter.
Let us consider Stock Items in this procedure.
The GST
Rate Setup report appears, as shown below:
3. Select
the Stock Item for which you want to update the HSN, and press Alt + S (Update GST Details).
per
your business needs, you can select multiple stock items by pressing Spacebar.
4. Specify
the relevant HSN/SAC details.
In the HSN/SAC & Related Details field, select the Specify Details Here option.
Enter a valid HSN that is a minimum of 6
digits, for the selected Stock Item. Note:
You can know about HSN/SAC details, as needed, by pressing Alt + H (HSN/SAC Details (History)).
Press Enter
to provide the Effective Date for
revised GST details.
Press Ctrl
+ A to save the details.
Once saved, the HSN appears against the
Stock Items in GST Rate Setup as
shown below:
You can also set the HSN for Stock Groups
and select the Stock Group from the List of Masters to see the HSN appearing
against the Stock Group.
Now, the HSN will also appear in the
printed copy of the invoice, as shown below:
here may be
cases in which you have set the GST Rate and HSN/SAC at the ledger level. In
such cases, you may update them in the ledger level itself.
And there may
also be cases in which you have set GST Rate at the ledger level.
However, in
transactions involving the ledger, there are Stock Items for which HSN/SAC
Codes are not same. In such cases, you can define HSN/SAC at the Stock Item
level.
So, as a user,
you have a flexibility to define GST rate at the ledger level and HSN/SAC at
the Stock Item.
View HSN/SAC Summary in GSTR-1
Once you set HSN Code for Stock Items, the
same will reflect in HSN/SAC Summary
of the GSTR-1 report.
Press Alt
+ G (Go To) > type or select GSTR-1
and press Enter.
Alternatively, from Gateway of Tally > Display
More Reports > GST Reports
> GSTR-1 and press Enter.
Press Alt
+ F2 to change the Period of the GSTR-1 report and then drill down on HSN
Summary.
Note:
If you do not find the Stock Items for which HSN Codes are updated in the HSN
Summary, then ensure that you have selected the right Period.
Bring the cursor to HSN/SAC Summary and press Enter.
The Stock Items for which the HSN Codes
are set appear as shown below.
If you have transactions involving those
Stock Items for which you have updated HSN Codes and they do not appear here,
then change the Period of the report.
Press F2
> Enter the From and To dates and press Enter.
Once you set HSN Code for a Stock Item or
a set of Stock Items with common HSN Code and GST Rate, the HSN Code will start
reflecting in the transactions involving those Stock Items.
Thereafter, you can file GSTR-1
for the invoices.
Validate GSTIN/UIN and HSN/SAC Online
The information related to a Party’s
GSTIN/UIN is a vital part of transactions recorded for the Party. On the other
hand, HSN/SAC details are important to identify items, goods, or services in a
transaction, as applicable. Furthermore, if your business has a turnover
exceeding Rs. 5 Crore in the previous financial year, then you need to furnish
4, 6, or 8 digit HSN codes for Stock Items as per new mandate under Notification 78/2020 issued by the GST authority. Additionally,
you need to provide accurate descript for Stock Items in the Invoice. So, it is
mandatory to enter the correct information related to GSTIN/UIN and HSN/SAC
code in transactions. The entry of the authentic information in the transaction
will ensure seamlessness in filing returns and claiming Input Tax Credit, if
applicable. To ensure that the information in transactions is authentic, you
must validate GSTIN/UIN and HSN/SAC.
Prerequisites for Online Validation of GSTIN/UIN and
HSN/SAC Information
There are three pre-requisites for online
validation of GSTIN or HSN Code and related information.
1. GST
should be enabled in the Company.
e-Invoicing or e-Way Bill or both the
features should be enabled.
To know how to enable e-Invoicing.
And to know how to enable e-Way Bill,
click here.
2. You
need authentic e-Invoice or e-Way Bill API login credentials that you must have
generated using Tally as GSP on the e-Invoice or e-Way Bill portal,
respectively.
This is because, to validate GSTIN and HSN
online, you will need to be logged in using the e-Invoice or e-Way Bill
credentials so that the product can exchange the GSTIN/UIN or HSN/SAC
information with the portal, once you log in with your credentials, you will
not need to log in for the next six hours, provided you do not shut your system
or computer.
If you have login credentials of multiple
GST registrations, then you can use e-Invoice Login or e-Way Bill Login
credentials of any of the GST registrations.
As mentioned earlier, entry of incorrect
or invalid GSTIN/UIN information can lead to problems in filing returns or
claiming Input Tax Credit (ITC). Furthermore, it may also cause obstacles in
generating e-Invoices and e-Way Bills. So, you will need to validate the
information. Moreover, there can be many other scenarios in which you will want
to validate the GSTIN and UIN information of a party with whom you are doing
business.
In
this section
1. Reasons
to validate GSTIN/UIN Info online.
2. Online
GSTIN validation for single party
3. Online
GSTIN validation for multiple parties in bulk
Reasons to validate GSTIN/UIN Info online
You will need to validate UIN or GSTIN for
various reasons.
Authenticity of GSTIN/UIN
information
GSTIN validation will help you validate
the information like the name of the company and mailing address of a Party
entered in a Party ledger.
Verify GSTIN on hand-written
invoice
When you receive a hand-written invoice
from a vendor, you will want to validate the information provided by the party,
thereby avoiding the consequences of incorrect information in the Invoice.
Avoid business with fraudulent
vendors
GSTIN validation also helps in avoiding
business with deceptive vendors who might be using fake GSTIN.
Status of GSTIN
You will get to know if the status of a
GSTIN is active or inactive.
Status of e-Way Bill
Through GSTIN validation, you will also
get to know if the Party is blocked from performing e-Way Bill activities.
Identify manual errors in GSTIN
information
It may be possible that there were some
manual mistakes committed while entering GST number and other information
related to GSTIN/UIN in the Party ledger. When you validate GSTIN/UIN Info for
such Parties, the information will not be found as the portal will not be able
to retrieve data. Thereafter, you can enter the correct GST number of the Party
in the ledger so that you can validate other GSTIN/UIN info using UCI-AC.
UCI-AC facilitates quick online validation
of GSTIN and UIN related information. You can validate either for single party
and also for multiple parties in bulk.
Online GSTIN validation for single party
Whenever you do business with a new party,
you can validate the GSTIN/UIN information provided by the party. It is
recommended to validate GSTIN information while creating or right after
creating a party ledger. It ensures that the information entered in the Party
ledger is authentic, and you can then make corrections immediately if needed.
However, you may want to verify the
information for a specific party at any point in time. In such cases, you can
validate GSTIN online for a party from the Party ledger.
But before that, ensure that the
pre-requisites for online GSTIN validation are fulfilled.
Thereafter, follow the steps given below
for GSTIN validation from the Party ledger.
1. Press
Alt + G (Go To) > Alter Master > Ledger > type or select the Party, and press Enter.
Alternatively, Gateway of Tally > Alter
> Ledger > type or select the
Party, and press Enter.
2. Press
Alt + L (Get GSTIN/UIN Info).
3. Press
Y (Yes) to accept.
The e-Invoice
Login or e-Way Bill Login screen
appears, based on the feature that is enabled.
If both the features are enabled in the
Company, then the e-Invoice Login
screen appears.
4. Enter your Username and Password,
and press Enter.
If you have login credentials of multiple
GST registrations, then you can use e-Invoice Login or e-Way Bill Login
credentials of any of the GST registrations.
UCI-AC exchanges information with the
portal.
The screen Get GSTIN/UIN Info for the GST number of the party appears as shown
below.
If the GST
number entered in the party ledger is wrong or invalid, then the NIC portal
will not retrieve the data for the GSTIN. On the As per Portal side, Could
not retrieve data will be displayed. You will need to enter the correct GST
number and you then can validate other details.
The information fetched from the portal to
UCI-AC is detailed under the column As
per Portal. You can verify the information such as Mailing Name and Address
entered in the party ledger and make corrections if needed.
Furthermore, the screen also provides
information related to Registration Type
and Status.
You can take a print or want to export the Get
GSTIN/UIN Info screen, if needed.
Online GSTIN validation for multiple parties in bulk
There may be multiple Party ledgers for
which GSTIN validation is pending. In such a case, you can validate GSTIN and
UIN information for multiple parties in bulk.
Before that, ensure that the
pre-requisites for online GSTIN validation are fulfilled.
Thereafter, follow the steps given below
for online GSTIN validation of multiple parties in bulk.
1. Press
Alt + G (Go To) > type or select Update Party GSTIN and press Enter.
Alternatively, Gateway of Tally > Display More Reports > Statutory
Reports > GST Reports > Update Party GSTIN.
A sub-screen for Group and Ledger
selection appears.
2. Type
or select the Name of Group from the
List of Groups and press Enter.
Similarly, type or select the Name of Ledger from the List of Ledgers and press Enter.
For example – Under List of Groups, you can select Sundry
Creditors and All Items under Name of Ledger, and then press Enter.
The Update
Party GSTIN/UIN report appears.
You can select All Items under Name of
Group. As a result, the report will display all the ledgers created under
each group.
1. Press
Alt + L (Get GSTIN/UIN Info).
2. Press
A (All GSTINs/UINs).
If you press C (Current GSTIN/UIN), then the GSTIN/UIN Info will be validated
for the party that is selected in the Update
Party GSTIN/UIN report.
3. The
e-Invoice Login or e-Way Bill Login screen appears, based
on the feature that is enabled.
4. If
both the features are enabled in the Company, then the e-Invoice Login screen appears.
Note: If there are one
or more Parties for whom GST number is not entered in the Party ledger or the
GST number entered in the Party ledger has less than 15 characters, then a
confirmation screen appears. You can press Y
to accept or make corrections in the Party ledger before initiating the
exchange.
5. Send
for Exchange.
a. Enter
your Username and Password, and press Enter.
If you have login credentials of multiple
GST registrations, then you can use e-Invoice
Login or e-Way Bill Login credentials of
any of the GST registrations.
UCI-AC exchanges information with the
portal after which it will display Exchange
Summary.
Note: If there are
Parties with an invalid GSTIN, then the portal will reject the request and
would be marked as Information Not Found.
You can enter the correct GSTIN number of the Party and then use the Get GSTIN/UIN Info option again.
b. Press
Any key to continue.
In the Update Party GSTIN/UIN report, a column gets added as shown below.
Note: If a Party's
GSTIN is inactive or is blocked from carrying out regular e-Way Bill
activities, then the GSTIN/UIN and Set GSTIN/UIN Info for the Party will
be displayed in red text.
c. Press
Ctrl + B (Basis of Values) to view
Parties based on Status of GSTIN, if needed.
Enable Set GSTIN/UIN Info for a Party and press Enter.
You can compare the GSTIN/UIN information
fetched from the portal with that in your books.
Additionally, you can update the
information under the As per Books
column, if needed.
6. Press Ctrl
+ A to save.
Thereafter, the changes will be updated in
the Update Party GSTIN/UIN report.
The information related to HSN is
important to identify the items or goods being sold or purchased.
In
this section
1. Reasons
to validate HSN/SAC information for Stock Items
2. Online
HSN/SAC validation for single Stock Item or Stock Group
3. Validate
HSN/SAC information online at the Stock Item level
4. Online
validation of HSN/SAC information at the stock group level
5. Validate
HSN/SAC information online at the Company level
6. Online
HSN/SAC validation for multiple Stock Items and Stock Groups
Reasons to validate HSN/SAC information
for Stock Items
You will want to use UCI-AC’s online
process to validate HSN Code and HSN/SAC details in your Stock Item masters for
the following reasons.
Convenience in verifying HSN/SAC
information for Stock Items
HSN Codes contains 21 sections under which
there are 99 chapters. Moreover, there are 1,244 headings and 5,224
subheadings. So, if you have entered HSN Code in a Stock Item and want to
update with other information such as description, then you can quickly verify
and then update.
Statutory compliance
If your business has a turnover exceeding
Rs. 5 Crore in the previous financial year, then you will need to furnish the
HSN details in the Invoice. Validating HSN/SAC details ensures that you do not
face any obstacles in filing returns. You can also verify the details in the
Sales Invoice provided by your vendor so that you can claim the ITC seamlessly,
if applicable to the transaction.
Online HSN/SAC validation for single Stock
Item or Stock Group
Before recording a transaction involving
new Stock Items or Stock groups, you will need to validate the HSN/SAC
information entered in the transaction to ensure its authenticity. It is
recommended to validate HSN/SAC information right after creating a Stock Item
or Stock Group. It will ensure that the information entered in the Stock Item
master is correct, and you can make corrections if needed. However, it may be
possible that you had already created a Stock Item or Stock Group, and there is
a need to validate the HSN/SAC information later. Furthermore, you may want to
revalidate the information at any point in time.
In such cases, you can validate the
HSN/SAC information online at the Stock Item or Stock Group level, as
applicable. Furthermore, you can also do so at the Company level.
Validate HSN/SAC information online at the
Stock Item level
Before validating HSN/SAC information,
ensure that the pre-requisites for online HSN validation are fulfilled.
Thereafter, follow the steps given below
for HSN/SAC validation at the Stock Item level.
1. Press
Alt + G (Go To) > Alter Master > Stock Item > type or select the Stock Item and press Enter.
Alternatively, Gateway of Tally > Alter
> Stock Item > type or select
the Stock Item and press Enter.
2. Under
Statutory Details, set Set/Alter GST Details to Yes and press Enter.
3. Press
F12 (Configure) > set Allow HSN/SAC details to Yes > press Ctrl + A to save.
Henceforth, you will always see the HSN/SAC Details in the GST Details for
Stock Item screen in all the Stock Item masters.
Note: If you had
already set Allow HSN/SAC details to
Yes, then you will not need to
perform this step.
4. Press
Alt + B (Get HSN/SAC Info).
5. Press
Y to accept.
The e-Invoice
Login or e-Way Bill Login screen
appears, based on the feature that is enabled.
If both the features are enabled in the
Company, then the e-Invoice Login
screen appears.
. Enter your Username and Password,
and press Enter.
If you have login credentials of multiple
GST registrations, then you can use e-Invoice Login or e-Way Bill Login credentials
of any of the GST registrations. UCI-AC exchanges information with the
e-Invoice portal.
You can enter
the correct HSN code for the Stock Item and then validate other HSN/SAC
information for the same.
You can take a print or export Get HSN/SAC Info Summary, if needed.
If the HSN Code entered in the Stock Item
is incorrect, then the portal will reject the request for HSN/SAC validation
with the Reason of Rejection as Invalid HSN Code. You
Online validation of HSN/SAC information
at the stock group level
If you have provided HSN/SAC information
for Stock Items under a Stock Group, then you can validate the HSN/SAC
information at the Stock Group level.
Open the Stock Group in the alteration
mode and follow the steps provided for validating HSN/SAC information online at
the Stock Item level.
To open the Stock Group in alteration
mode, follow the path given below.
Press Alt
+ G (Go To) > Alter Master
> Stock Group > type or select
the Stock Group and press Enter.
Alternatively, Gateway of Tally >
Alter > Stock Group > type or select the Stock Group and press Enter.
Thereafter, you can validate the HSN and
SAC information for the Stock Group.
Validate HSN/SAC information online at the
Company level
It may be possible that your business
involves buying or selling of only one Stock Item or items under a single Stock
Group. For example, you are a trader of bars and rods, and therefore, you must
have created only one Stock Item or Stock Group for different bars and rods in
your UCI-AC Company data.
In such cases, you can validate the
HSN/SAC information at the Company level.
Follow the steps provided for validating
HSN/SAC Information online at the Stock Item level with the following changes.
Navigate to the GST Details of the Company.
Press F11
(Features).
Press Enter
on Enable Goods and Services Tax (GST).
Under Additional
Features, enable Set/Alter GST rate
details.
Validate the HSN and SAC information for
the Stock Item using Get HSN/SAC Info.
You can also
validate HSN or SAC information from the Sales or purchase ledger level if you
have configured the HSN/SAC details in the ledgers.
Online HSN/SAC validation for multiple
Stock Items and Stock Groups
You may want to validate HSN/SAC
information for multiple Stock Items and Stock Groups at one shot. The facility
for the same is provided in the GST Rate
Setup report.
Before validating HSN and SAC information
for multiple Stock Items and Stock Groups, ensure that the pre-requisites for
online HSN validation are fulfilled.
Thereafter, follow the steps given below.
1. Press
Alt + G (Go To) > type or select GST Rate Setup and press Enter.
Alternatively, Gateway of Tally > Display
More Reports > Statutory Reports
> GST Reports > GST Rate Setup.
The GST
Rate Setup report appears.
Select the Stock Items and Stock Group
using spacebar.
2. Press
Alt + B (Get HSN/SAC Info).
3. Press
Y to accept.
4. The
e-Invoice Login or e-Way Bill Login screen appears, based
on the feature that is enabled.
If both the features are enabled in the
Company, then the e-Invoice Login
screen appears.
5. Enter
your Username and Password, and press Enter.
If you have login credentials of multiple
GST registrations, then you can use e-Invoice Login or e-Way Bill Login
credentials of any of the GST registrations. UCI-AC then exchanges information
with the portal.
6. Select
a Stock Item and press Enter. As a
result, you will be able to view complete Description
of the Stock Item.
Pressing Alt + F5 will enable you to view complete Description of all the Stock Items in the Get
HSN/SAC
Info Summary as shown below.
If the HSN Code
entered in one or more Stock Items is incorrect, then the portal will reject
the request for HSN/SAC validation for those specific Stock Items with the
Reason of Rejection as Invalid HSN Code. You can enter the correct HSN code for
the items and validate for other HSN/SAC details.
In the Get HSN/SAC Info Summary screen, the information fetched from the
portal to UCI-AC is in blue fonts. Moreover, you can verify the Description entered in the Stock Items
and make corrections, if needed.
Moreover, if the description was already
provided in some of the selected Stock Item masters, but HSN Code was missing,
then you can update the HSN Code in those masters as per the code fetched from
the portal.
You can take a print or export Get HSN/SAC Info Summary, if needed.
To conclude, UCI-AC provides you with
simple processes to validate GSTIN and HSN. This also enables you to update
entries in your Company data so that the authentic information reflects in the
Invoices.
Local and Interstate Purchase of Goods and Services
with GST
If your business is GST registered, then
the supplies consumed by your company that are taxable will incur GST., you can
record taxable purchases under GST for the purchase of goods and services using
a purchase voucher and it will take care of everything right from the tax rates
to tax returns and so on.
Tax
for Local and Interstate purchases:, you can record local or interstate
taxable purchases under GST by selecting the tax ledgers – GST and SGST/UTGST for local purchases and IGST for interstate
purchases.
Calculate
appropriate GST: UCI-AC will calculate GST based on the GST rates defined
by you and make sure that the voucher complies with the rules and regulations
of the GST governing department. UCI-AC also provides you with the facility to
view tax analysis while recording a voucher for a detailed understanding of
taxation.
Purchases
under Multi-GSTIN: In case you have multiple registrations, UCI-AC provides the flexibility to handle
supplies using multiple GSTINs of your company, record supplies with different
tax rates in the same invoice, and modify the assessable value of purchases.
Purchases
under GST in reports and returns: Once you record a purchase invoice with
GST, you can see the transaction in the Eligible for Input Tax Credit section
of GSTR-3B. UCI-AC will also show your total ITC which you can adjust as
required.
Record Local Purchase of Goods and Services
In your business, you can get supplies
from a local party or a party from a different state. A GST purchase is
identified as a local or interstate according to the location at which the
goods or services are going to be consumed., you have the flexibility to select
the Place of Supply under Party Details while creating vouchers for purchases
under GST. Once the right place of supply is selected, the rest of the
transaction remains the same for local and interstate supplies. You can also
view the Tax Analysis while passing vouchers for purchases under GST to have a
detailed understanding of the taxation inferred in the voucher.
In
this section
1. Local
purchase of goods
2. Local
purchase of services
Local purchase of goods
You can record a local purchase of goods,
using a Purchase voucher in Item Invoice mode.
Open a purchase voucher in the Item Invoice mode.
1. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers
> F9 (Purchase).
2. Press Ctrl + H (Change Mode) and select Item Invoice.
a. Enter
the Supplier Invoice No. and Date.
3. Provide
the supplier details.
a. Party A/c name: Select the supplier or
cash ledger. Enter Dispatch Details and Order Details, as needed.
b. Place of Supply: Select the location
where the goods are supplied.
This is prefilled with the State entered
for your company. For local purchases, ensure that the Place of Supply is same as the state of the supplier, under Party Details. You can also enter Receipt Details and Order Details if required. If you do
not see these options, enable them from F12
(Configure).
In Purchase
ledger, select the common purchase ledger.
Ensure that GST applicability is set to Applicable.
4. Enter
stock item details.
5. Name of Stock Item: Select the stock
item.
For GST
to be calculated in the voucher, ensure that the stock item is configured with
the correct GST Rate.
Specify Quantity and Rate.
6. Select
the tax ledgers – central tax and state tax, for local purchase.
GST will be calculated based on the CGST
and SGST rates defined in the stock item ledger.
If you want to
view Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5 (Detailed) to view the
detailed breakup of the tax.
7. As
always, press Ctrl + A to save the
voucher.
Similarly, you can use Voucher mode if you
have good knowledge of accounting entries. If you want to post your purchase
entry in Dr/Cr or By/To format you can use this mode.
The same transaction if recorded in
Voucher Mode will appear like this.
Local purchase of services
You can record a local purchases under GST
for the purchase of services, using a Purchase voucher in Accounting Invoice
mode.
Open a purchase voucher in the Accounting Invoice mode.
1. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers
> F9 (Purchase).
2. Press Ctrl + H (Change Mode) and select Accounting Invoice.
a. the Supplier
Invoice No. and Date.
Your supplier issues you a Sales invoice
which you will be entering as Purchase voucher.
Supplier Invoice No. and Date is from that
Sales Invoice received from your supplier.
3. Provide
the supplier details.
a. Party A/c name: Select the supplier or
cash ledger.
b. Place of Supply: Select the location
where services are supplied.This is prefilled with the State entered for your
company. For local purchases, ensure that the Place of Supply is the same as the state of the supplier, under Party Details.
You can also enter Receipt Details and Order
Details if required. If you do not see these
options, enable them from F12 (Configure).
4. Enter
Particulars details.
Select the service purchased ledger.
For GST to be calculated in the voucher, ensure
that the service is configured with the correct GST Rate.
5. Specify
the Amount.
Select the central and state tax ledgers
for local purchase.
GST will be calculated based on CGST and SGST rates defined in the service ledger.
If you want to
view Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
6. As
always, press Ctrl + A to save the
voucher.
You can see the transaction under Eligible for Input Tax Credit of GSTR-3B.
Record Interstate Purchase of Goods and Services
In your business, you can get supplies
from a local party or a different state. Purchases under GST are identified as
local or interstate purchases according to the location at which the goods or
services are going to be consumed. Hence, for an interstate purchase, ensure
that the Place of Supply is different from the state of the supplier, under
Party Details. and not the seller’s
location specified in the Party Ledger., you have the flexibility to select the
Place of Supply under Party Details while creating the voucher. Once the right
place of supply is selected, the rest of the transaction remains the same for
local and interstate supplies. You can also view the Tax Analysis while passing
a voucher to have a detailed understanding of the taxation inferred in the
voucher.
In
this section
1. Interstate
purchase of goods
2. Interstate
purchase of services
Interstate purchase of goods
You can record an interstate purchase of
goods, using a Purchase voucher in Item Invoice mode.
1. Open
a purchase voucher in the Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
2. Enter
the Supplier Invoice No. and Date.
3. Provide
the supplier details.
a. Party A/c name: Select the supplier or
cash ledger. Enter Dispatch Details and Order Details, as needed.
b. Place of Supply: Select the location where
the goods or services are supplied.
§ Under
Party Details if the Place of Supply is different from the
State address of your supplier, then only the purchase is considered as
interstate under GST. It is to be noted that in Purchase vouchers, Place of Supply is picked automatically
as the state of your company.
§ You
can also enter Receipt Details and Order Details if required. If you do
not see these options, enable them from F12
(Configure).
4. In
Purchase ledger, select the common
purchase ledger.
Ensure that GST applicability is set to Applicable.
However.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
For GST
to be calculated in the voucher, ensure that the stock item is configured with
the correct GST Rate.
b. Specify
Quantity and Rate.
6. Select
the tax ledger – interstate tax, for interstate purchase.
GST will be calculated based on the IGST rate defined in the stock item
ledger.
If you want to view Tax Analysis, press Ctrl + O (Related Reports) > GST Tax Analysis.
Press Alt
+ F5 (Detailed) to view the detailed break-up of tax.
7. As
always, press Ctrl + A to save the
voucher.
Interstate purchase of services
You can record an interstate purchase of
services, using a Purchase voucher in Accounting Invoice mode.
1. Open
a purchase voucher in the Accounting
Invoice mode.
Press Alt
+ G (Go To) > Create Voucher
> press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers
> F9 (Purchase).
Press Ctrl + H (Change Mode) and select
Accounting Invoice.
2. Enter
the Supplier Invoice No. and Date.
3. Provide
the supplier details.
a. Party A/c name: Select the supplier or
cash ledger.
b. Place of Supply: Select the location
where services are supplied.
§
Under Party Details if
the Place of Supply is different from the State address of your supplier, then
only the purchase is considered as interstate under GST. It is to be noted that
in Purchase vouchers, Place of Supply is picked automatically as the state of
your company.
4. Under
Particulars, enter the name of
service purchased, and specify the Amount.
5. Select
the tax ledger – interstate tax, for interstate purchase.
GST will be calculated
based on the IGST rate defined in
the stock item ledger.
If you want to view Tax
Analysis, press Ctrl + O (Related
Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view the
detailed break-up of tax.
6. .
As always, press Ctrl + A to save
the voucher.
Record Purchase with Multiple GST Registrations
In case you have multiple GSTINs defined
in your Company, you can easily switch between the Tax registration as per your
preference while recording a purchase voucher. You can use separate voucher
number series for each registration.
Your purchases under GST will be treated
as local or interstate by comparing the place of supply against the state of
the GSTIN selected as the source of supply.
Once you open the voucher, press F3 (Company/Tax Registration) and
select the required GSTIN/UIN and
press Enter.
After selecting the required GSTIN/UIN, you can record the purchase
voucher under GST as usual. Similarly, you can record services with different
GSTINs.
Record Purchase of Items with Different Tax Rates in a
Single Voucher
In some GST purchases, a single supply can
have items with different GST rates and HSN/SAC details.
, you can easily record the purchase of
goods with different tax rates in the same invoice. You can define the
applicable GST rates for each stock items that are part of a single purchase.
UCI-AC will take care of the tax computations, provided the GST details like
HSN/SAC and tax rates are configured correctly for the items.
There is no difference in the voucher
creation process for transactions with stock items having different GST rates.
You can record the purchases under GST transaction as usual.
While recording a purchase
voucher in Item Invoice mode,
1. Under
Name of Item, select the stock items
that are part of a common supply to you, and enter the Quantity and Rate for
each item.
2. Select
the applicable tax ledgers, depending on local or interstate purchase.
GST will
be calculated based on the rates defined in each stock item.
3. Provide
other necessary details, and as always, press Ctrl + A to save the voucher.
Press Ctrl
+ O (Related Reports) > type or select GST – Tax Analysis to view the tax details. Press Alt + F5 (Detailed) to view the
detailed break-up of tax. If you are in Rel 2.1 or earlier, you can see the GST – Tax Analysis report by pressing Ctrl + I.
Similarly, you can record services with
different tax rates.
Change in the Assessable Value of Purchases Under GST
In some business scenarios, you might need
to change the taxable value of items or services in your voucher. For example,
when you want to calculate GST less than the item value, or when you want to
increase the assessable value more than the item cost you will have to change
the assessable value. UCI-AC takes care of it by providing you with an option
to Override Taxable Value while passing a GST purchase voucher.
While recording a purchase
voucher in Item Invoice mode,
1. Press
F12 (Configure) > set Modify GST & HSN/SAC related details to Yes.
2. Provide
the stock item details and press Enter in the Amount field.
3. Provide
the required details to override the taxable value.
a. In
the GST Rate and Related Details screen, press F12 (Configure) > set
Override Taxable Value to Yes.
b. Set
Override Taxable Value to Yes.
c. Enter
the Taxable Value and press Ctrl + A to save.
4. Select
the required tax ledgers and provide other necessary details.
5. As
always, press Ctrl + A to save the
voucher.
After changing the assessable value GST
rate will be applied to that value to calculate the GST amount.
Similar to updating the accessable value,
you can update other required details. On the GST Rate and Related Details screen press F12 (Configure) to see the list of Configuration that can be modified.
1. Open
the voucher for which you want to check the GST Portal view of Invoice.
2. Press
Ctrl + O (Related Reports) and
select GST Portal view of Invoice.
You can also check the GST Portal view of Invoice while
recording a voucher, by simply pressing Ctrl
+ O (Related Reports) and selecting GST
Portal view of Invoice.
For example, a transaction can be marked
as Exported if it has been exported, or a transaction can be marked as
Mismatched if it does not match with the data on portal.
1. Open
the required GST report and drill down to the transaction for which you want to
Set GST Status.
2. Select
the required transaction.
a. Keep
the cursor on the required transaction and press Spacebar (Select). You can do this for multiple transactions if you want to Set GST Status of more than one
transaction.
3. After
selecting the transaction, press Alt + S
(Set GST Status).
4. Select
the GST Status from the List of Statuses.
o System Inferred: To mark the
transaction to be automatically updated by the system for the returns.
o Excluded: To exclude the transaction
form GST returns.
o Exported: To mark the transaction that
is already exported.
o Mismatched: To mark the transaction
that does not match with the portal.
o Not Exported: To mark the transaction
that has not been exported.
o Reconciled: To mark the transaction
that matches the data on the portal.
GST on Inward Remittance of Service Value
You can pay GST on the inward remittance
of service value and capture it in GSTR-3B.
Consider the scenario where 18% GST has to
be charged on an inward remittance of Rs. 2,750 for the service value of Rs.
4,50,000. As the inward remittance is part of the service value, it should not
affect the books of accounts, but the GST amount has to appear in GSTR-3B as
eligible input tax credit.
1. Gateway
of Tally > Alter > type or select Voucher Type > Payment.
Alternatively,
press Alt + G (Go To) > Alter Master > type or select Voucher Type > Payment.
2. Enable
Allow zero-valued transactions in
voucher type alteration screen.
3. Accept
the screen. As always, you can press Ctrl
+ A to save.
1. Gateway
of Tally > Vouchers > press F5 (Payment).
Alternatively, press Alt + G (Go To) > Create Voucher > press F5 (Payment).
2. Press
F12 (Configure) > set Modify Tax Rate details of GST to Yes and save the settings.
3. Select
the bank ledger.
4. Under
Particulars, select the expense
ledger defined with the options:
o Is
GST Applicable to Applicable.
o Set/alter
GST Details to No.
o Type
of Supply to Service.
5. In
the GST Details screen, select Purchase Taxable as the Nature of Transaction, enter the tax Rate and the Taxable Value as shown:
6. Do
not enter the Amount for the expense ledger, as it is a zero valued transaction
being made only to pay GST.
7. Select
the GST ledgers, and manually calculate and enter the tax amount. In this
example, the total GST amount would be Rs. 495 (calculated as 2,750 * 18/100 =
495).
8. .
Press O to override and save the
voucher.
1. Gateway
of Tally > Display More Reports > Statutory Reports > GST Reports >
GSTR-3B.
Alternatively, Alt + G (Go to) > type or search GSTR-3B > Press Enter.
2. Press
F2 and change the tax period as per
the transaction date.
The transaction appears
under Eligible ITC as shown below:
In some business scenarios, after you have
made a purchase there can be a situation where you return the entire supply or
some of the items from the supply to the supplier due to varied reasons such as
the quality of supply, surplus supply, late delivery, and so on. If the
purchase was recorded with GST, you will have to record the Purchase Returns
with GST as well to correctly adjust your expense and taxation in reports., you
can record Purchase Returns with GST using a Debit Note and also mark the reason
for issuing the note. Furthermore, whether the Purchase
Returns is made in the same GST return period
of the Purchase voucher or the subsequent period, UCI-AC automatically adjusts
the taxation in GSTR-3B under Input Tax Credit Reversed and places the entry in the right period.
Record a Debit Note for Purchase Returns
Debit Note is a document issued to a party
stating that you are debiting their Account in your Books of Accounts for the
stated reason. It is commonly used in the case of Purchase Returns to mark the
reduction in expenses, and Input Tax Credit Reversed in GST reports.
1. Press
Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or
select Debit Note and press Enter.
Alternatively,
Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or
select Debit Note and press Enter.
2. In
Party A/c name, select the party from whom the original purchase was made and
press Enter.
3. Under
Original Invoice Details, enter the Original Invoice No. and Date of the original purchase
transaction against which you are recording a purchase return.
As per
the Purchase voucher, you can enter the Original
Invoice Details in the Debit Note as
4. nter
stock item details for debit note and select the tax ledgers.
a. Name of Stock Item – Select the stock
item that you are returning to the supplier.
b. Specify
Quantity and Rate.
c. Select
the required tax ledgers.
For example, shown below
is a Debit Note for 10 Bajaj Microwaves with a taxable value of Rs. 80,000/-
and with GST of Rs. 14,400/- recorded
on 4-Nov-22. The values of GST ledgers here, that is, Rs. 14,400/- will be the Input Tax Credit (ITC) reversed from the
original purchase ITC.
5. Set
the option Provide GST details to Yes, and select the reason of the
purchase return from the List of Reasons.
When the seller has not uploaded
the credit note, the buyer has to upload the debit note from the viewpoint of
outward supply. Hence, the List of Reasons for Issuing Note is the same in a
debit note and a credit note.
o 01-Sales Return: When there is a return
of goods or services after the purchase.
o 02-Post Sale Discount: When a discount
is allowed on goods or services after the purchase.
o 03-Deficiency in services: When there
is a deficiency in services (like a quality issue) after purchase.
o 04-Correction in Invoice: When there is a change in the invoice
raised that leads to a change in the tax amount.
o 05-Change in POS: When there is a change in place of supply that leads to a change
in the tax amount.
o 06-Finalization of Provisional assessment: When there is a change in price or
rate after the department issues a notification about the finalized price of
the goods or services.
o 07-Others: Any other nature of the
return.
6. .
As always, press Ctrl + A to save
the Debit Note.
Impact of purchase return if return
occurred in the same return period
When you record a Debit Note against a
Purchase voucher in the same GST return period of that voucher, then the Input
Tax Credit Reversed will be visible in that same GST return period under
GSTR-3B.
For example, if you have recorded a
Purchase voucher on 25-07-2021 and a Debit Note for that on 28-07-2021, then
the Input Tax Credit Reversed for that will be visible under GSTR-3B report for
07/2021.
To learn how to record a debit note, refer
to Record a Debit Note for Purchase Returns.
Let us consider a Purchase voucher with
Supplier Invoice No. LPG-01 and Date: 1-Nov-22. Taxable value is Rs. 8,00,000/- with GST of Rs. 1,44,000/-
recorded on 2-Nov-22. Now, if you had to return a few of the stock items due to
reasons like a defect in the product or change in place of supply, you can
record a Debit Note.
Shown below is a Debit Note voucher recorded
on 4-Nov-22.
You can see the impact of the Debit Note
on your Input Tax Credit Reversed, in GSTR-3B for Nov-22.
Press Alt
+ G (Go To) > GSTR-3B >
press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-3B > press Enter.
Impact of purchase return if return
occurred in the subsequent return period
Purchase returns can also happen after a
few weeks or months of purchase, especially after you have filed your returns
for the month of purchase. In such cases, you will need to record a Debit Note
against the purchase voucher in the subsequent GST return period of that
voucher. You can then view the Input Tax Credit Reversed in GSTR-3B of the
subsequent GST Return Period.
To learn how to record a debit note, refer
to Record a Debit Note for Purchase Returns.
Let us consider a Purchase voucher with
Supplier Invoice No. LPG-01 and Date: 1-Nov-22. Taxable value is Rs. 8,00,000/- with GST of Rs. 1,44,000/-
recorded on 2-Nov-22. Now, if you had to return a few of the stock items due to
any reason like a defect in the product or change in place of supply, you can
record a Debit Note. If you record a debit note against this on 01-12-2022,
then the Input Tax Credit Reversed for that voucher will be visible in the
GSTR-3B report of Dec 2022.
Shown below is a Debit Note voucher recorded
on 1-Dec-22.
You can see the impact of Debit Note under
Input Tax Credit Reversed in GSTR-3B for Dec-22.
Press Alt
+ G (Go To) > GSTR-3B >
press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-3B > press Enter.
In your business, if you have suppliers
outside of India, you will certainly be importing goods from your suppliers.
Such purchases, which are considered import of goods, are similar to
inter-state supplies and attract integrated tax (IGST). Additionally, you have
to pay Customs Duty on such purchases. All the taxes and duties on import of
goods are paid on a reverse charge basis, that is, the liability to pay tax is
on the recipient of the supply of goods instead of the supplier.
You can record import of goods under GST
using a purchase voucher and also claim a tax credit for the payment made
towards Integrated Tax and Customs Duty.
Record Import of Goods under GST
, you can record the import of goods using
a Purchase voucher. You can also enter import details like Port Code and Bill of
Entry No. while recording the voucher. Once you record the transaction, you can
see its impact on IGST in GSTR-B under Import of Goods.
1. Press
Alt + G (Go To) > Create Voucher > and press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).
2. In
Party A/c name, select the
supplier’s ledger for which the country selected is other than India.
3. Select
the purchase ledger.
4. Enter
stock item details.
a. Name of Stock Item – Select the stock
item that you have imported from your supplier.
b. Specify
Quantity and Rate.
5. Set
Provide GST/e-Way Bill details to Yes, to enter additional details
regarding the import
6. As always, press Ctrl + A to save the Purchase voucher.
You can view the corresponding impact in
GSTR-3B under Input Tax Credit Available (either in part or in full).
Include Customs Duty in the Taxable Value
The import of goods is taxable under
Integrated tax and you also have to pay Customs Duty on such purchases., you
can add the Customs Duty to the Taxable Value of your import of goods in the
Purchase voucher, by overriding the taxable value.
1. Open
the Purchase voucher in which you
want to include customs duty in the taxable value.
2. Press
F12 (Configure) and set Modify GST & HSN/SAC related details to Yes.
GST Rate
and Related Details screen appears, press F12 (Configure) > set
Override Taxable Value to Yes.
3. Select
the amount field for the stock item for which you want to add the custom duty.
4. Set
Override Taxable Value to Yes and enter the total amount in Taxable Value.
Add the value of
customs duty as charged by the department to the taxable value.
Save the screen to
update the taxable value
5. As
always, you can press Ctrl + A to
save the Purchase voucher.
You can view the corresponding impact in GSTR-3B under Import of Goods.
Record a Journal Voucher to Increase Tax Liability
In the import of goods under GST, taxes
and duties are paid on a reverse charge basis, that is, the liability to pay
tax on the supply of goods is on you instead of the supplier., you can record a
Journal voucher to raise the tax liability by yourself on the import of goods.
1. Gateway
of Tally > Vouchers > press F7 (Journal).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
the Registration under which you want to
create the voucher and press Enter.
a. Press
Alt + J (Stat Adjustment) to open
the Stat Adjustment details screen.
b. Select
the Type of duty/tax as GST
c. Select
the Nature of Adjustment as Increase in Input Tax Credit
d. Select
Additional Nature of Adjustment as Import of Goods
e. Save
the Stat Adjustment Details screen.
Provide the Stat Adjustment details
for Input Tax Credit being claimed.
3. Debit
the ledger created for tax on imports (under Current Assets) and credit the integrated tax ledger (IGST).
o In
the ledger master created for tax on imports, ensure that the option GST applicability is set to Not Applicable.
4. As
always, you can press Ctrl + A to
save the Journal voucher.
Record Payment towards Customs Duty and Integrated Tax
While dealing with the import of goods in
your business, taxes and duties on such purchase is to be paid on a reverse
charge basis. After paying tax against the import of goods, you can create a
Payment voucher.
While creating the Customs Duty ledger
under Purchase Accounts:
1. Set
Inventory Values are affected to Yes.
If you do not see this
option, press F12 (Configuration)
and set Use Inventory Allocations for Ledgers to Yes. Press Ctrl + A to
save.
2. As
always, press Ctrl + A to save the
Ledger Creation screen.
You can also create this
ledger on the fly while recording the purchase transaction, by pressing Alt + C.
While recording a Payment voucher for the customs
duty and integrated tax that you have paid:
1. Under
Particulars, select the customs duty
ledger with Inventory Values are
affected set to Yes.
2. In
the Inventory Allocations screen,
select the item and enter only the Amount.
3. Select
the integrated tax ledger, and enter the tax Amount.
4. As
always, you can press Ctrl + A to
save the Payment voucher.
Claim Input Tax Credit for Tax Paid on Imports
After paying tax for the import of goods,
you can claim Input Tax Credit on the liability. you can record a Journal
voucher with the Nature of Adjustment as Increase in Input Tax Credit to claim
ITC.
In the Journal voucher,
1. Provide
the Stat Adjustment details for Input Tax Credit being claimed.
a. Press
Alt + J (Stat Adjustment)
b. Select
the Type of duty/tax as GST
c. Select
the Nature of Adjustment as Increase in Input Tax Credit
d. Select
Additional Nature of Adjustment as Import of Goods
e. Save
the Stat Adjustment Details screen.
2. Debit
the integrated tax ledger and credit the ledger created for tax on imports.
3. Accept
the screen. As always, you can press Ctrl
+ A to save the Journal voucher.
|
Nature of Adjustments |
Additional Details |
Ledgers to be used |
|
Increase of Input Tax Credit |
Import of Capital Goods |
Debit: GST Ledgers (integrated
tax/state tax and central tax) Credit: Ledger group under Current
Assets |
|
Nature of Adjustments |
Additional Details |
Ledgers to be used |
|
Increase of Tax Liability |
Import of Capital Goods |
Debit: Ledger group under Current
Assets Credit: GST Ledgers (integrated
tax/state tax and central tax) |
GST Purchases with Nil Rate, Exempt, SEZ, Other
Territories, Deemed Export, and High Sea
In your business, you may be purchasing
some goods and services that are Nil-rated, while some of those may be exempted
from taxes. if you are getting inward supplies from parties that are Deemed
Exporters and parties located in a Special Economic Zone, other territories,
and high seas, then you can record such purchases with GST. You will need to
configure the party ledger and the account ledgers for such specific scenarios
as required. After the configuration, you can simply record a Purchase voucher,
and based on the details entered in the transaction, it will start appearing in
the applicable section of GSTR-3B.
You do not have to pay GST on the purchase
of nil-rated goods from a local or interstate supplier, and the transaction can
be recorded using a Purchase voucher. You will need to configure a purchase
account ledger with Taxability Type set to Nil Rated.
Some examples of Nil Rated supplies are
Grains, Salt, and Jaggery.
1. Open
a Purchase voucher in the Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > press F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
2. Enter
the Supplier Invoice No. and Date.
a. type
or select the Registration under which you want to create the voucher and press
Enter.
3. In
Party A/c name, select the
supplier’s ledger.
4. Select
the applicable Purchase ledger.
a. Ensure
that the Taxability Type of the
purchase ledger is selected as Nil Rated.
b. Select
the Natures of Transaction as System Inferred as shown below.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
Quantity and Rate.
6. .
As always, press Ctrl + A to save
the Purchase voucher.
Now that you have recorded a nil rated
purchase voucher, you can see the transaction in GSTR-3B under Exempt, Nil
rated, and Non-GST Inward Supplies.
While creating a ledger, you can select the
Natures of Transaction as System Inferred after selecting the Taxability Type
as Taxable, Nil-Rated, or Exempt under GST Rate & Related Details.
What is System Inferred?
It is a mechanism that automatically picks
up the nature of the transaction based on the available details in the system
like the Registration Type of the
party under Tax Registration Details,
State address of the company and the
party, availability of the bill of entry, and more. As a user, you do not have
to remember such specific details of the party or cross-verify any such details
while passing a transaction. All you have to do is simply select, System Inferred while selecting the Nature of Transaction, and based on the
details entered in the transaction, it will start appearing in the applicable
section of GSTR-3B.
Let us look at a few examples:
If both the company state and party state
is same, and the party is selected as Regular
under GST Registration types, the
nature of the transaction inferred by the system will be Local Purchase. Similarly, in case of a Regular party, if the company state and party state are different,
the nature of the transaction inferred by the system will be Interstate Purchase.
In case of a Deemed Export GST Purchase
from a party that is registered as Regular-Deemed
Exporter, the Natures of Transaction via
System Inferred will be either Local Purchase
Deemed Export or Interstate Purchase
Deemed Export based on the location of the party.
In case of a GST Purchase from SEZ where
the party type is registered as Regular-SEZ,
the Natures of Transaction via System Inferred will be either Purchase from SEZ or Purchase from SEZ (Without Bill of Entry) based
on the availability of the bill of entry. UCI-AC will pick up the nature of the
transaction based on the option (Is Bill
of Entry available) selected on the Party
Details screen while creating the voucher.
Similarly, if the location of a party is
outside of India, then UCI-AC will automatically log the transaction under Imports on selecting System Inferred.
Select Nature of Transaction manually
If you want to manually select the Natures
of Transaction as per your requirement, you can also do that by selecting the
required option from the list. This will override System Inferred details and the nature of the transaction will be
as you have selected manually.
The local or interstate purchase of goods
or services exempted from GST can be recorded using a Purchase voucher. You
must configure the purchase account ledger with the Taxability Type set to
Exempt. The nature of the transaction is determined based on the details like
the location of the party, GST registration type of the party, bill of entry
details, and more. For example, if the supply is local then the nature of
transaction inferred will be Local Purchase – Exempt. If the supplier is from a
different state, then the nature of transaction inferred will be Interstate
Purchase – Exempt.
Some examples of GST exempted goods are
Meat, Honey, Milk Products, Dry Fruits, and more.
1. Open
the Purchase voucher in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > press F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
a. type
or select the Registration under which you want to create the voucher and press
Enter.
2. Enter
the Supplier Invoice No. and Date.
a. type
or select the Registration under which you want to create the voucher and press
Enter.
3. In
Party A/c name, select the
supplier’s ledger.
4. Select
the applicable Purchase ledger.
a. Ensure
that the Taxability Type of the
purchase ledger is selected as Exempt.
b. Select
the Nature of Transaction as System Inferred as shown below. To know
about the System Inferred transaction.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
Quantity and Rate.
6. As always, press Ctrl + A to save the Purchase voucher.
Now that you have recorded a nil rated
purchase voucher, you can see the transaction in GSTR-3B under Exempt, Nil
rated, and Non-GST Inward Supplies.
The purchase of goods and services from a
party in an SEZ can be recorded using a Purchase voucher. You have to configure
the GST Registration type of the supplier as Regular SEZ. In SEZ purchase
transactions, the nature of transaction is determined by Taxability Type
selected in the purchase account ledger and the bill of entry details entered
in Party Details during voucher creation.
Purchase from SEZ Taxable with Bill of
Entry
1. Open
the Purchase voucher in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
2. Enter
the Supplier Invoice No. and Date.
3. In
Party A/c name, select the
supplier’s ledger.
a. While
creating a SEZ party ledger, you can select Regular – SEZ as Registration
Type
under Tax Registration Details.
b. On
the Party Details screen, set Is Bill of Entry Available to Yes.
4. Select
the applicable Purchase ledger.
o You
can create a purchase ledger for SEZ using 3 Taxability Types – Exempt,
Nil Rated, and Taxable.
o For
example, in this case, we have selected
Taxable as Taxability Type as
shown below.
o Select
the Nature of Transaction as System Inferred as shown below. To know
about the System Inferred transaction,
o System Inferred – This option
automatically picks up the nature of transaction based on the available details
in the system.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
Quantity and Rate.
6. .
Set Provide GST/e-Way Bill details to Yes and enter the bill of entry details
on the Additional Details : Purchase from SEZ – Taxable screen.
7. As
always, press Ctrl + A to save the
Purchase voucher.
Now that you have recorded SEZ purchase,
you can see the transaction in GSTR3B under
Exempt, Nil rated, and Non-GST Inward
Supplies.
Similarly, you can record various types of
SEZ purchases with different taxability types as stated below:
·
Purchase
from SEZ Taxable (Without Bill of
Entry): Tax is applicable. In the Party
Details screen of the invoice, set the option Is Bill of Entry available to No.
·
Purchase
from SEZ Nil Rated: No tax is applicable. In the Party Details screen of the invoice, set the option Is Bill of Entry available to Yes.
·
Purchase
from SEZ Nil Rated (Without Bill of Entry):
No tax is applicable. In the Party
Details screen of the invoice, set the option Is Bill of Entry available to
No.
·
Purchase from SEZ – Exempt Tax is exempted. In the screen of the invoice, set the option
Is Bill of Entry available to Yes.
·
Purchase
from SEZ – Exempt (Without Bill of
Entry): Tax is exempted. In the Party
Details screen of the invoice, set the option Is Bill of Entry available to
No.
·
Purchase
from SEZ – LUT/Bond: No tax is
applicable. Such purchases can be made when your supplier has signed up a
letter of undertaking with the department for the sale of goods without the
payment of duty. While passing the purchase transaction, you can select either
the ledger created for exempt SEZ purchases or the common purchase ledger.
o Provide
the LUT/Bond details in the Company GST Details screen.
o Set
the option in Is Bill of Entry available
to Yes in the Party Details screen of the invoice.
·
Purchase
from SEZ – LUT/Bond (Without Bill of
Entry): No tax is applicable. In the Party
Details screen of the invoice, set the option Is Bill of Entry available to
No.
GST Purchase from Other Territory
You can record a GST purchase transaction
for supplies from a party in Other Territory using a Purchase voucher. To do
so, you must enable the option Assessee
of Other Territory in the party ledger.
If your company is located in Other
Territory, then enable the option Assessee
of Other Territory in the Company GST Details screen. Given below are the
taxes applicable in various scenarios of Other Territory transactions while
recording a purchase voucher with GST.
·
When the supply is from Other territory to Other
territory – Central and UT taxes are
applicable
·
When the supply is from Other territory to a
state or union territory – Integrated tax
is applicable
·
When the supply is from a State or Union
Territory to Other Territory – Integrated
tax is applicable
GST Purchase from Other Territory to Other
Territory
If your company is located in Other
Territory and the supplier is located in Other Territory as well, then you will
need to record a GST purchase transaction using a Purchase voucher. Taxes
applicable will be Central and Union Territory.
1. Enable
the option Assessee of Other Territory
for your company and the party ledger.
a. Configure
your company as an Assessee of Other
Territory.
i.
Press F11
to open the Company Features screen and set Enable Goods and Services Tax (GST) to Yes. After that, on the GST
Details screen, set Assessee of
Other Territory to Yes. As
always, press Ctrl + A to save.
b. Configure
the party ledger as an Assessee of Other
Territory.
i. While
creating a party ledger, press F12
(Configuration) and set Show more
configurations to Yes. Then set
the option Assessee of Other Territory to Yes and
press Ctrl + A to save.
ii. Now,
on the Ledger Creation screen, you
will be able to see the option Assessee
of Other Territory, set it to Yes
and press Ctrl + A to save.
2. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > F9 (Purchases).
3. In
Party A/c Name, select the party
ledger in which the option Assessee of
Other Territory is set to Yes.
4. Select
the Purchase ledger.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
the Quantity and Rate.
6. .
Select the CGST (Central) and UGST (Union Territory) tax ledgers.
7. As
always, press Ctrl + A to save the
Purchase voucher.
You can see the transaction under Eligible for Input Tax Credit in GSTR-3B.
GST Purchase from a State or Union
Territory to Other Territory
If your company is located in Other
Territory and the supplier is located in a State or Union Territory, then you
will need to record a GST purchase transaction using a Purchase voucher.
Integrated Goods and Services Tax will be applicable in such cases.
1. Enable
the option Assessee of Other Territory
for your company in the Company GST
Details screen. To learn how to configure your company as an other
territory, go to <hyperlink to Configure
your company as an Assessee of Other Territory (Other Territory to Other
Territory – H2) on this page>.
2. Open
the Purchase voucher.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > F9 (Purchases).
3. In
Party A/c Name, select the party
ledger.
4. Select
the Purchase ledger.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
the Quantity and Rate.
6. .
Select the IGST tax ledger.
7. As
always, press Ctrl + A to save the
Purchase voucher.
You can see the transaction under Eligible for Input Tax Credit in GSTR-3B.
GST Purchase from Other Territory to a
State or Union Territory
If your company is located in a State or
Union territory and the supplier is located in Other Territory, then you will
need to record a GST purchase transaction using a Purchase voucher. Integrated
Goods and Services Tax will be applicable in such cases.
1. Open
the Purchase voucher.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > F9 (Purchases).
2. In
Party A/c Name, select the party
ledger in which the option Assessee of
Other Territory is set to Yes.
To learn how to enable this option, go to <hyperlink to Configure the party
ledger as an Assessee of Other Territory (Other Territory to Other Territory –
H2) on this page>.
3. Select
the Purchase ledger.
4. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
the Quantity and Rate.
5. Select
the IGST tax ledger.
6. .
As always, press Ctrl + A to save
the Purchase voucher.
You can see the transaction under Eligible for Input Tax Credit in GSTR-3B.
Deemed exports refer to the supply of
goods to end-exporters. However, the supply and manufacture of goods take place
within India. 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., you can record
GST purchase of such supplies using a Purchase voucher.
You must configure the GST Registration
type of the supplier as Regular-Deemed Exporter. In a purchase deemed exports
transaction, the nature of transaction is determined by the taxability type
selected in the purchase account ledger.
The taxability of a purchase deemed
exports transaction must be selected in the purchase account ledger., you can
create a purchase ledger for Deemed Export using 3 Taxability Types – Exempt,
Nil Rated, and Taxable.
Deemed Exports – Taxable
1. Open
the Purchase voucher in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > press F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
2. Enter
the Supplier Invoice No. and Date.
3. In
Party A/c name, select the
supplier’s ledger.
a. While
creating a Deemed Export party ledger, you can select Regular – Deemed Exporter as Registration
Type under Tax Registration Details.
4. Select
the applicable Purchase ledger.
·
You can create a purchase ledger for Deemed
Export using 3 Taxability Types
– Exempt,
Nil Rated, and Taxable.
For
example, in this case, we have selected
Taxable as Taxability Type as
shown below.
·
Select the Nature
of Transaction as System Inferred.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
Quantity and Rate.
6. .
As always, press Ctrl + A to save
the Purchase voucher.
Now that you have recorded Deemed Export
purchase, you can see the transaction in GSTR3B.
Similarly, you can record various types of
Deemed Export purchases as stated
below:
·
Local and
Interstate Purchase Deemed Exports – Nil
Rated: No tax is applicable. The nature of transaction, either local or
interstate, depends on the the State of Buyer and Place of Supply.
·
Local and
Interstate Purchase Deemed Exports – Exempt:
Tax is exempted. The nature of transaction, either local or interstate, depends
on the State of Buyer and Place of Supply.
In a high sea purchase, the ownership of
the consignment is transferred when goods are in transit on the sea. In such
cases, the buyer sells his consignment to a third party before the arrival of
goods but after sailing the vessel from the load port.
, you can record the high sea purchase of
goods with GST using a Purchase voucher. You must configure the nature of
transaction as High Sea Purchases in
the purchase account ledger.
This nature of transaction is provided for
Assam, Dadra & Nagar Haveli and Daman & Diu, Delhi, Gujarat, Haryana,
Himachal Pradesh, Jammu & Kashmir, Kerala, Ladakh, Maharashtra, Odisha,
Tamil Nadu, and West Bengal.
1. Open
the Purchase voucher in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > press F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Item Invoice.
a. >type
or select the Registration under which you want to create the voucher and press
Enter.
2. Enter
the Supplier Invoice No. and Date.
3. In
Party A/c name, select the
supplier’s ledger.
4. Select the applicable Purchase ledger
o
Ensure that the Taxability Type of the purchase ledger is selected
as Exempt.
o Select the Nature of Transaction High Sea Purchases
as shown below.
5. Enter stock item details.
a. Name of Stock Item – Select the stock
item.
b. Specify
Quantity and Rate.
6. As
always, press Ctrl + A to save the
Purchase voucher.
Avail Input Tax Credit (ITC) on Purchase of Capital
Goods
As per Rule 43 of CGST Rules, you need to
avail input tax credit on purchase of capital goods in the same month of
purchase. There is no provision in GST rules, to avail or carry forward ITC for
a period of 5 years. If you are manufacturing exempted goods, calculate the ITC
per month [total ITC/60, (5 years * 12 months)]. As and when the exempted goods
are manufactured, you can reverse the ITC to the extent of exempted turnover in
the same month (ITC per month * exempted turnover/ total turnover). Based on the
return filing period, you can compute the ITC per month or per quarter, and
reverse the ITC accordingly.
1. Gateway
of Tally > Vouchers > press F9 (Purchase).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
2. Press
Ctrl + H (Change Mode) to select the
required voucher mode (Accounting
Invoice, in this case).
3. Select
the party ledger.
4. Select
the capital goods ledger grouped under Fixed
Assets and enter the amount.
5. Select
the Central Tax and State/UT Tax ledgers. In the accounting invoice mode, the
amount gets auto calculated based on the GST rates defined in the capital goods
ledger. As always, press Alt + C, to
create a master on the fly. Alternatively, press Alt + G (Go To) > Create
Master > type or select Ledger
> press Enter.
6. Accept
the screen. As always, you can press Ctrl
+ A to save.
Reversal of ITC on manufacturing exempt supplies
1. Gateway
of Tally > Vouchers > press F7 (Journal).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
3. Press
Alt + J (Stat Adjustment) , select
the options as shown below:
a. Type
of duty\tax – GST.
b. Nature
of Adjustment – Reversal of Input Tax
Credit.
c. Additional
Details –Capital credit due to exempted
supplies – Rule 43(1)(h).
d. Debit
the expenses ledger. Ensure the option Is
GST Applicable is set to No in
the expense ledger.
e. Credit
the Central Tax ledger. Based on the Taxable
Value of goods used for personal consumption, enter the ITC to be reversed.
Enter the corresponding tax Rate and
Taxable Value.
f. Credit
the State/UT Tax ledger. The amount appears automatically. The tax Rate and Taxable Value will appear as provided for Central Tax ledger.
As always, press Alt + C, to create a master on the fly. Alternatively, press Alt + G (Go To) >
Create
Master > type or select Ledger
> press Enter.
Record Purchase of Fixed Assets/Capital Goods Under
GST
In your business, if you purchase capital
goods/fixed assets like buildings, machinery, equipment, vehicles, tools, and
more, then you can record such purchases under GST using a Purchase voucher.
Once you have recorded the transaction, you can see its impact under Input Tax
Credit Available in GSTR3-B.
As per the GST rules, you need to avail
the input tax credit on the purchase of capital goods in the same month of
purchase. There is no provision in GST rules, to avail or carry forward ITC for
a period of 5 years. If you are manufacturing exempted goods, calculate the ITC
per month [total ITC/60, (5 years * 12 months)]. As and when the exempted goods
are manufactured, you can reverse the ITC to the extent of exempted turnover in
the same month (ITC per month * exempted turnover/ total turnover). Based on the
return filing period, you can compute the ITC per month or per quarter, and
reverse the ITC accordingly.
Create Capital Goods/Fixed Assets ledger
You can create a ledger for fixed assets
under the Fixed Assets account group with GST Applicability set as Applicable
and the Type of Supply as Capital Goods. UCI-AC also enables you to define the
GST rate and details while creating the ledger.
1. Press
Alt + G (Go To) > Create Master > Ledger and press Enter.
Alternatively, Gateway of Tally > Create > type or select Ledger and press Enter.
2. Enter
the Name and group it under Fixed Assets.
3. Set
GST Applicability to Applicable and enter the HSN/SAC & Related Details as
required.
4. Under
GST Rate & Related Details enter
the required details and set Nature of
Transaction as applicable.
5. Select
Type of Supply as Capital Goods.
6. As
always, press Ctrl + A to save the
ledger.
Record purchase of Capital Goods/Fixed
Assets
, you can record the purchase of capital
goods with GST using a Purchase voucher in Accounting Invoice mode. Once you
have recorded a purchase voucher with GST for capital goods, you can see the
transaction under Eligible for Input Tax
Credit of GSTR-3B.
1. Open
the Purchase voucher in Accounting Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > press F9 (Purchase).
> type or select the Registration under
which you want to create the voucher and press Enter.
2. In
Party A/C name, select the
supplier’s ledger.
3. Under
particulars, select the capital goods ledger grouped under Fixed Assets and enter the Amount.
To learn how to create a Fixed Asset ledger, click here.
4. Select
the Central Tax and State/UT Tax ledgers.
5. Accept
the screen. As always, you can press Ctrl
+ A to save the Purchase voucher.
Now that you have recorded a purchase
voucher with GST for capital goods, you can see the transaction under Eligible for Input Tax Credit of GSTR-3B.
Reversal of ITC on Manufacturing Exempt Supplies
UCI-AC enables you to reverse the input
tax credit on GST purchase of capital goods in case of manufacturing of exempt
supplies. You can do this by debiting the expense ledger under the Indirect
Expenses account against the taxes ledger using a Journal voucher, and setting
the Nature of Adjustment as Reversal of Input Tax Credit.
Create an expense ledger for reversal of
ITC
To reverse the input tax credit on the GST
purchase of capital goods, you must create an expense ledger under the Indirect
Expenses account and debit it against the taxes ledger using a Journal voucher.
1. Press
Alt + G (Go To) > Create Master > Ledger and press Enter.
Alternatively, Gateway of Tally > Create > type or select Ledger and press Enter.
2. Enter
the Name and group it under Indirect Expenses.
Ensure that GST
Applicability is set to Not Applicable.
3. As
always, you can press Ctrl + A to
save the ledger.
Reversal
of ITC on manufacturing exempt supplies
You can use a Journal voucher to record
the reversal of ITC.
1. Open
the Journal voucher.
a. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
Alternatively, Gateway of Tally > Vouchers
> press F7 (Journal).
> type or select the Registration under
which you want to create the voucher and press Enter.
2. Press
Alt + J (Stat Adjustment), select
the options as shown below:
a. Type
of duty\tax: GST.
b. Nature
of Adjustment: Reversal of Input Tax Credit.
c. Additional
Details: Capital credit due to exempted supplies – Rule 43(1)(h).
3. Debit
the expenses ledger with GST
Applicability is set to Not
Applicable. To learn how to create an expense ledger for reversal of ITC,
click here <hyperlink to the just above section ‘create an expense
ledger’>.
4. Credit
the Central Tax ledger. Based on the
Taxable Value of goods used for
personal consumption, enter the ITC to be reversed. Enter the corresponding tax
Rate and Taxable Value.
5. Credit
the State/UT Tax ledger. The amount
appears automatically. The tax Rate and
Taxable Value will appear as
provided for Central Tax ledger.
6. .
As always, press Ctrl + A to save
the Journal voucher.
Once you have passed the transaction, you
can see the value in GSTR-3B under Input Tax Credit Reversed.
a. Accept
the screen.
As always, you can
press Ctrl + A to save.
GST Invoice Support for Material In
In your business, you deal with the
movement of your inventories from one place to another. In some cases, you must
be receiving inventories from your supplier or any other party.
1. Open
the Material In voucher.
a. Press
Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or
select Material In and press Enter.
Alternatively,
Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or
select Material In and press Enter.
> type or select the Registration under
which you want to create the voucher and press Enter.
If the Material In voucher type is not visible on the List of Voucher Types screen, Show
Inactive > type or select Material
In and press Enter. An
activation prompt appears, press Enter
or click on Yes to activate the
voucher.
2. Enter
the Supplier Invoice No. and Date.
3. In
Party A/c name, select the party
ledger from whom you are getting the material.
4. In
Source Godown, select the godown
from where you are getting the material.
5. Enter
stock item details.
a. Name of Stock Item – Select the stock
item
b. Specify
Quantity and Rate.
6. Select
the tax ledgers.
7. Enter
the Narration, if required. As
always, you can press Ctrl + A to
save the Material In voucher.
Record Services Availed in Another State as an
Intrastate Transaction
Consider a scenario where your business is
in a union territory, or you are an assessee of another territory. When you are
availing services in another state, as the place of supply will be within that
state, the supplier will charge SGST and CGST. While recording transactions in
your books, you will be able to select UTGST and not SGST as per the location
of your business. You can record such interstate transactions as intrastate
transactions, by changing the nature of transaction in the invoice. You can also
record such purchases as expenses.
Record Purchase of Services with GST
While recording the invoice for services
availed in another state, you can select the nature of transaction as Purchase Taxable.
1. Open
the purchase voucher screen and select the accounting invoice mode.
a. Gateway
of Tally > Vouchers > press F9 (Purchase).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
b. Press
Ctrl + H (Change Mode) to select the
required voucher mode (Accounting
Invoice, in this case).
2. Configure
the invoice to modify tax details.
a. Press
F12 (Configure) and set the option Modify Tax Rate details for GST to Yes. b. Press Ctrl + A to save.
3. Specify
the supplier details.
a. Supplier Invoice No. and Date: The
invoice number and date should be the same as given in the corresponding sales
bill.
b. Party A/c name: Select the supplier
ledger.
c. Party Details: Enter the supplier’s
name and address. Select the State
in which the service was availed.
4. Select
the purchase ledger, update the nature of transaction, and mark it as
ineligible for input credit.
a. Select
the service ledger enabled for GST, with the option Type of Supply set to Services.
b. Enter
the amount and press Enter.
c. In
the GST Details screen, press F12 (Configure) > set the option Allow override Classification/Nature to
Yes.
d. Select
the Classification/Nature as Purchase Taxable.
e. Set
the option Is ineligible for input
credit to Yes/No, as applicable.
f. Press
Enter to accept and return to
purchase invoice.
g. Enter
the amount for the service availed.
h. Select
the UTGST and CGST ledgers.
i.
The message Mismatch in the Nature of
Transaction and Place of Supply appears.
j.
Press Enter
to continue.
k. Press
Y or O to accept the screen. As there is a mismatch in place of supply,
the transaction will appear as an exception in GSTR-3B.
Similarly, you can record purchase of
goods.
5. View
the transaction in GSTR-3B.
a. Press
Alt + G (Go To) > type of select GSTR-3B > and press Enter.
b. Select
Uncertain Transactions (Corrections needed) > and press Enter.
c. Select
Mismatch in Nature of transaction and Place of supply, Party’s country > and
press Enter.
d. Press
Alt + J (Accept as is).
e. Press
Enter to accept the transaction as
is. The transaction will be included in GSTR3B.
f. In
GSTR-3B, the transaction appears
under the respective sub-section of Section 4 Eligible ITC.
To view the transaction with the nature of
transaction selected in the invoice, press F5
(Nature View) > press Alt + F5
(Detailed). The transaction appears as shown below:
Record Purchase of Services as Expenses
You can record the purchase of service as
an expense, by entering the total amount of taxable value and GST as the
expense value.
1. Open
the purchase voucher screen and select the accounting invoice mode.
a. Gateway
of Tally > Vouchers > press F9 (Purchase).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
b. Press
Ctrl + H (Change Mode) to select the
required voucher mode (Accounting
Invoice, in this case).
2. Specify
the supplier details.
a. Supplier Invoice No. and Date: The
invoice number and date should be the same as given in the corresponding sales
bill.
b. Party A/c name: Select the supplier
ledger.
c. Party Details: Enter the supplier’s
name and address. Select the State
in which the service was availed.
3. Select
the expense ledger and enter the amount.
a. Select
the ledger grouped under Indirect
Expenses. Ensure the option Is GST
applicable is set to No.
b. Enter
the total amount of taxable value and GST as the expense value. For example,
enter 27,612 (taxable value of Rs. 23,400 + 18% GST of Rs. 4,212).
c. Accept
the screen. As usual, you can press Ctrl
+ A to accept.
Similarly, you can record purchase of
goods.
This transaction will appear under Not relevant in this Return section of GSTR-3B.
Record Indirect Incomes Under GST
In your business, you will be generating
indirect incomes like a sale commission or income from fixed asset selling that
will be taxable under GST. UCI-AC enables you to record indirect incomes under
GST with a Journal voucher using a ledger created under the Indirect Incomes
account.
1. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
Alternatively,
Gateway of Tally > Vouchers > F7 (Journal).
2. Press
F12 (Configure) > set Modify GST
& HSN/SAC related details to Yes and Provide Reference No. and Date to Yes.
o If you do not see any of these options,
set Show more configurations
Yes
3. Enter
the Supplier Invoice No. and Date.
4. Under
Particulars, debit the income ledger created under (Indirect Incomes) and press
Enter. The GST Rate and Related Details screen will appear. Set GST Rate
details to Specify Details Here and set the Nature of transaction to
Local-Purchase Taxable. To learn how to create an income ledger for GST
purchases, refer to (hyperlink to the section on creating income ledger, below
on this pgae)
o If
you are unable to see Local-Purchase Taxable under the Natures of Transaction
list, click on Show More.
5. Debit
the tax ledgers and credit the party ledger.
6. As always, you can press Ctrl + A to save the Journal voucher.
You can see the impact of this transaction
in GSTR-3B under Eligible for Input Tax Credit. Income
under GSTR3B
Configure Income Ledger for GST
If you frequently record indirect income
transactions with an Income ledger for GST purchases, then you can directly
configure it with GST Rate & Related Details at the ledger level at once.
So, you will not need to provide such details during voucher creation. The
details will be acquired from the values entered in the income ledger.
1. Press
Alt + G (Go To) > Create Master > Ledger and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger and press Enter.
2. Enter
the Name and group it under Indirect Expenses.
3. Set
GST Applicability to Applicable and enter the HSN/SAC & Related Details as
required.
4. Under
GST Rate & Related Details, set GST Rate details to Specify Details Here
and set the Nature of transaction to Local-Purchase Taxable.
If you are unable to see Local-Purchase
Taxable under the Natures of Transaction list, click on Show More.
Income Ledger
5. Select
the Type of Supply as required.
6. .
As always, press Ctrl + A to save
the ledger.
Record Expenses with GST in Purchase, Payment or
Journal Voucher
Your business will incur day-to-day
expenses such as rent, telephone bills, Internet Bill, stationery expenses, and
so on, to carry out the operations. If your business is GST registered, then
these expenses are taxable under GST, and therefore, you will have to record
them accordingly. UCI-AC enables you to create an expense ledger and record
expenses with GST in Purchase, Payment or Journal voucher.
You will need to create an expense ledger
under the Indirect Expenses account and set the GST Rate & Related Details
and the type of expense. This ledger can be used to record expenses with GST in
Purchase, Payment, or Journal vouchers.
1. Press
Alt + G (Go To) > Create Master > Ledger and press Enter.
Alternatively,
Gateway of Tally > Create > type or select Ledger and press Enter.
2. Enter
the Name and group it under Indirect Expenses.
3. Set
GST Applicability to Applicable and enter the HSN/SAC & Related Details as
required.
4. Under
GST Rate & Related Details,
enter the required details and set Nature
of Transaction as applicable.
5. Select
the Type of Supply as required.
6. As
always, press Ctrl + A to save the
ledger.
Record an Expense in a Purchase voucher
UCI-AC enables you to record an expense with
GST using a Purchase voucher. GST amount will be auto-calculated by selecting
the tax ledgers while recording the voucher. The impact of the transaction will
be visible under the Eligible for Input Tax Credit section of GSTR-3B.
1. Open
the Purchase voucher in Accounting Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively,
Gateway of Tally > Vouchers > F9 (Purchase).
b. Press Ctrl + H (Change Mode) and select Accounting Invoice.
2. Enter
the Supplier Invoice No. and Date.
3. In
Party A/c name, select the
supplier’s ledger or the Cash
ledger.
4. Under
Particulars, enter the expense
ledger, and specify the Amount. To learn
how to create an expense ledger with GST applicability, click here.
5. Select
the required tax ledgers.
6. .
Enter the Narration if required. As
always, press Ctrl + A to save the
Purchase voucher.
Now that you have recorded an expense with
GST in Purchase voucher, you can see the transaction under Eligible for Input Tax Credit of GSTR-3B.
Record an Expense in a Journal voucher
, you can record an expense with GST using
a Journal voucher. You need to enter the GST amount as it will not be
auto-calculated. The impact of the transaction will be visible under the
Eligible for Input Tax Credit section of GSTR-3B.
a. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
2. Alternatively,
Gateway of Tally > Vouchers > press F7 (Journal).
3. To
add the supplier invoice number, press F12
(Configure).
a. Press
F12 (Configure) > Show more configurations: Set this
option to Yes > Provide Reference No. and Date: Set
this option to Yes.
4. Under
Particulars, debit the expenses and
tax ledgers, credit the party ledger. To learn how to create an expense ledger
with GST applicability, click here.
5. Set
Provide GST Details to Yes and enter the Party Details.
6. Enter
the Narration if required. As
always, press Ctrl + A to save the
Journal voucher.
Now that you have recorded an expense with
GST in Journal voucher, you can see the transaction under Eligible for Input Tax Credit of GSTR-3B.
Record an Expense in a Payment voucher by selecting Party
Details
, you can record an expense with GST using
a Payment voucher and enter the party details towards which the payment has
been made. You need to enter the GST amount as it will not be auto-calculated.
1. Press Alt + G (Go To) > Create Voucher > press F5 (Payment).
2. Alternatively,
Gateway of Tally > Vouchers > press F5 (Payment).
3. Press
F12 (Configure) to provide supplier
invoice or reference no. and date, and party details for GST.
a. Press
F12 (Configure) > Supplier Inv/Ref No. and Date: set this option to Yes and
Provide Party details for GST: set this option to Yes.
4. Enter
the Supplier Inv/Ref No.
5. In
Account, select the cash/bank ledger
and press Enter. The Party Details screen will appear, enter
the required details.
Under Particulars,
select the expense ledger and the tax ledgers. To learn how to create an
expense ledger with GST applicability.
6. .
As always, press Ctrl + A to save
the Payment voucher.
Now that you have recorded an expense with
GST in Payment voucher, you can see the transaction under Eligible for Input Tax Credit of GSTR-3B.
Account for TDS or TCS on Purchases Under GST
Record a purchase voucher with GST for the
complete transaction, and then deduct TDS in the journal voucher. Make the
payment for the balance amount. Transactions with TDS or TCS on purchases under
GST will not appear in GST returns.
Consider a scenario where Ajay Developers
records the sale of works contract to KM Council of India, worth Rs. 1,00,000.
The transaction attracts 18% GST.
1. Sales
voucher
2. Purchase
voucher
3. Journal
voucher
4. Payment
voucher
5. Receipt
by accounting for TDS deduction
To record a sales voucher in the books of
Ajay Developers
Debit: KM Council of India 1,18,000
Credit: Sale of works 1,00,000
Credit: CGST @ 9 9,000
Credit: SGST @ 9 9,000
1,18,000.00 1,18,000.00
To record a purchase voucher in the books
of KM Council of India
Debit: Purchases of works contract 1,00,000
Debit: CGST @ 9% 9,000
Debit: SGST @ 9% 9,000
Credit: Ajay 1,18,000
————————————————————————————————————————-
1,18,000.00
1,18,000.00
KM Council of India will deduct TDS and
then make the payment to Ajay Developers.
To record a journal voucher for TDS
deduction in the books of KM Council of India
Debit: Ajay Developers 2,000
Credit: TDS – CGST @ 1% 1,000
Credit: TDS – SGST @ 1% 1,000
—————————————————————————————————————————-
2,000.00
2,000.00
To record a payment voucher for TDS
deduction in the books of KM Council of India
Debit: Ajay Developers 1,16,000
Credit: Bank/Cash 1,16,000
——————————————————————————————————————————
1,16,000.00 1,16,000.00
Ajay Developers will record a receipt
voucher and account for TDS deduction.
To record a receipt voucher in the books
of Ajay Developers
Debit: Cash/Bank 1,16,000
Credit: KM Council of India 1,16,000
——————————————————————————————————————————-
1,16,000.00 1,16,000.00
To record TDS on CGST and SGST in the
books of Ajay Developers
Debit: TDS – CGST 1,000
Debit: TDS – SGST 1,000
Credit: KM Council of
India 2,000
——————————————————————————————— 2,000.00 2,000.00
Use the same process to record
transactions of TCS with GST.
Local & Interstate Supply of Goods and Services
with GST
You do business to earn revenue by selling
goods or services and to track such revenue you need to record transactions
once you sell goods or services. If you are a registered dealer, then you need
to pay tax for the goods or services sold. You can supply goods or services to
both registered and unregistered consumers. After you have recorded the sales
transactions, you can print the invoices, including the GST details.
The GST invoice must have details like the
Name, address, and GSTIN of the supplier and registered buyer, Name of the item
or service, Unique Tax Invoice Number, HSN/SAC codes, GST rates and more.
Tax
for Local and Interstate sales:, you can record taxable sales with GST
using a sales voucher. Depending on the location of the supply, the sale of
goods and services can be classified as either local or interstate. Central and
State taxes (CGST and SGST) are applicable when you sell goods or services
within the state, whereas Integrated tax (IGST) is applicable for interstate
sales.
Calculate
appropriate GST: GST is calculated based on the GST rates defined by you in
the master. You can also define an HSN/SAC for your stock item. UCI-AC provides
you with the option to view the tax analysis to see the accuracy of your entry.
Multi-GSTIN:
If you have business in multiple locations, you may be assigned multiple GSTINs
for each location. UCI-AC provides you with the facility to record the supply
of goods or services for any specific GSTIN. This is not applicable for Rel 2.1
and earlier.
Record
with multiple tax rates in a single invoice: In GST, different tax rates
are applicable to different goods and services. If your business provides a mix
of goods and services in a single invoice, then it may also have multiple tax
rates applied to the invoice., you can record the supply of goods and services
with multiple tax rates in a single invoice. You need to correctly define each
item’s GST rates to calculate the tax amount.
Override
assessable value: The assessable value of goods and services is the amount
on which the
GST payable is determined. You can
override the assessable value and calculate the GST amount on the overridden
value. Along with the assessable value, you can also override the HSN/SAC of
the stock item.
Sales
to buyer, delivery to consignee:
While recording the supply of goods and services, the buyer may ask you
to deliver the goods or services to a different address or to a different
person. In that case, you can mention in the party details, the details of both
buyer and consignee. You can also send the sales invoice to your buyer and
delivery details to the consignee.
Use
Voucher Class for sales: You can create a voucher class for sales with
details like sales ledger, tax ledger along with their tax rates and additional
ledger if any. Later you can use the same voucher class to record the supply of
goods and services. You do not have to select the tax ledgers separately, as it
automatically considers the ledger mentioned in the voucher class.
GST
sales in reports and returns: Once you record the sales invoice with GST,
you can see the transactions in GSTR-1.
Record Local Supply of Goods and Services
When you supply goods or services to a local
party, such sales are a local supply of goods or services under GST. You
identify the supply of goods or services as local based on the Place of Supply.
If the Place of Supply is the same as your company address, then it is a local
sale. UCI-AC enables the option to select the Place of Supply in the Party
Details screen while creating the voucher. Once you select the right place of
supply, the rest of the transaction remains the same for both local and
interstate supplies. For local sales, you need to use CGST and SGST ledgers to
determine the tax amount. You can also view the Tax Analysis while passing a
voucher to have a detailed understanding of the taxation inferred in the
voucher.
In this section
1. Local
supply of goods | Item Invoice mode
2. Local
supply of services | Accounting Invoice mode
Local supply of goods | Item Invoice mode
When recording the sale of goods, choose
cash or bank for cash sales and the party ledger for credit sales., you can
record sales of goods or stock items using the Item Invoice mode, and specify
the stock item details, quantity, and rate. In the Party Details screen, the
Place of Supply is prefilled with the party ledger state. If the Place of
Supply is the same as your company states then the sales transaction is
recorded as a local supply of goods. To record the tax for local sales, you
must use the CGST and SGST ledgers.
1. Open
the Sales Voucher in the Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
2. Specify
the buyer details.
a. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You
can create the Party A/c on the fly by pressing Alt + C.
b. Dispatch
Details: Enter the Dispatch Details, as needed and press Enter.
You
can choose to enable the options for Order
Details by pressing F12
(Configure).
c. Party Details: You can update the buyer
details while recording the transaction and print the same in the invoice.
The Place of Supply field is prefilled with
the party ledger state. You consider a sale as a local sale under GST if the
buyer is from the same state as your company state.
Your regular customer may
need specific details, such as the address with the landmark, alternative
contact number, and so on, to appear in the printed invoice. In such cases,
create the party account with the required details and select the same party
account in the Buyers field.
d. As
always, you can press Ctrl + A to
save and proceed.
3. In
the Sales ledger, select the common
sales ledger.
Ensure that GST applicability is set to Applicable and that no GST rate is
defined.
4. Enter
stock item details.
a. Name of Item: Select the stock item.
For GST
to be calculated in the voucher, ensure that the stock item is configured with
the correct GST Rate.
b. Specify
Quantity and Rate.
In case you do not see
the required item in the list, you can create the stock item on the fly by
pressing Alt + C.
5. Select
the tax ledgers CGST and SGST for local sales.
GST is calculated based
on the tax rates defined in the stock item ledger.
If you are selling goods with the same GST
rate then you can define the GST rate at the time of creating the company. In
such cases, the GST gets calculated based on the rate defined when creating the
company.
6. .
To view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
7. Provide
Narration, if needed, and press Ctrl + A to save the sales voucher.
8. .
Print the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively, press Alt + P (Print) > Current.
b. In
the Print screen, press C (Configure) to configure the print
options for your invoice, if needed.
·
To change the printer, C (Configure) > press F6
(Printer) > select a printer from
the List of Printers > and press Enter.
·
To print multiple copies of the invoice, press F5 (No. of Copies) and press Enter.
You can also select the Type of Copy (for example, Original,
Duplicate, or
Triplicate, as needed).
·
To view the GST breakup of each item, go to C (Configure) > set Show Item-wise GST details as Yes.
c. Press
I (Preview) to check the invoice
before printing if needed.
d. Press
P (Print) to print the invoice.
You can generate an e-Invoice and e-Way
Bill, if needed.
The same transaction you can record using
As Voucher mode if you are familiar with the double entry mode of accounting.
If you record the transaction in Voucher Mode, it appears as below.
Now that you have recorded a local supply
of goods with GST, you can see the transaction in the Local Supplies under Outward
Supplies of GSTR-1.
If you are in Rel 2.1 and earlier, you can
view the transaction in the Local Sales under Outward Supplies of GSTR-1.
Local supply of services | Accounting
Invoice mode
When recording the sale of services,
choose cash or bank for cash sales and party ledger for credit sales., record
sales of services and the total amount using the Accounting Invoice mode. An
accounting ledger is not required as there is no stock item to allocate. In the
Party Details screen, the Place of Supply is prefilled with the party ledger
state. If the Place of Supply is the same as your company states then the sales
transaction is recorded as a local supply of services. To record the tax for local
sales, you must use the CGST and SGST ledgers.
1. Open
the Sales Voucher in the Accounting Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change mode) > select Accounting Invoice.
2. Specify
the buyer details.
a. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You can
create the Party A/c on the fly by pressing Alt + C.
b. Dispatch
Details: Enter the Dispatch Details, as needed and press Enter.
You can
choose to enable the options for Order
Details by pressing F12
(Configure).
c. Party Details: You can update the buyer
details while recording the transaction and print the same in the invoice.
The Place of Supply field is prefilled with
the party ledger state. You consider a sale as a local sale under GST if the
buyer is from the same state as your company state.
Your regular customer may need specific
details, such as the address with the landmark, alternative contact number, and
so on, to appear in the printed invoice. In such cases, create the party
account with the required details and select the same party account in the
Buyers field.
d. As
always, press Ctrl + A to save and
proceed.
3. Enter
Particulars details.
a. Select
the service ledger.
For GST
to be calculated in the voucher, ensure that the service is configured with the
correct GST Rate.
b. Specify
the Amount.
Create
the service ledger on the fly by pressing Alt
+ C.
4. Select
the tax ledgers CGST and SGST for local sales.
GST is calculated
based on the tax rates defined in the service ledger.
If you are selling services with the same
GST rate then you can define the GST rate at the time of creating the company.
In such cases, the GST gets calculated based on the rate defined when creating
the company.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
6. Provide
Narration, if needed, and press Ctrl + A to save the sales voucher.
7. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. In
the Print screen, press C (Configure) to configure the print
options for your invoice, if needed.
·
To change the printer, C (Configure) > press F6
(Printer) > select a printer from
the List of Printers > and press Enter.
·
To print multiple copies of the invoice, press F5 (No. of Copies) and Enter. You can also
select the Type of Copy (for
example, Original, Duplicate, or Triplicate, as needed).
·
To view the GST breakup of each item, go to C (Configure) > set Show Item-wise GST details as Yes.
c. Press
I (Preview) to check the invoice
before printing if needed.
d. Press
P (Print) to print the invoice.
You can generate an e-Invoice and e-Way
Bill, if needed.
Now that you have recorded a local supply
of services with GST, you can see the transaction in the Local Supplies under Outward
Supplies of GSTR-1.
Record Interstate Supply of Goods and Services
You can supply goods or services to either
a local party or a party from another state. The supply of goods or services is
identified as local or interstate based on the Place of Supply. If the Place of
Supply is different from your company address then it is an interstate sale.
UCI-AC enables the option to select the Place of Supply in the Party Details
screen while creating the voucher. Once the right place of supply is selected,
the rest of the transaction remains the same for local and interstate supplies.
For interstate sales, you need to use IGST ledgers to determine the tax amount.
You can also view the Tax Analysis while passing a voucher to have a detailed
understanding of the taxation inferred in the voucher.
In this section
1. Interstate
supply of goods | Item Invoice mode
2. Interstate
supply of services | Accounting Invoice mode
Interstate supply of goods | Item Invoice
mode
When recording the sale of goods, choose
cash or bank for cash sales and the party ledger for credit sales., you can
record sales of goods or stock items using the Item Invoice mode, and specify
the stock item details, quantity, and rate. In the Party Details screen, the
Place of Supply is prefilled with the party ledger state. If the Place of
Supply differs from your company states then the sales transaction is recorded
as an interstate supply of goods. To record the tax for interstate sales, you
must use the IGST ledgers.
1. Open
the Sales Voucher in the Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
2. Specify
the buyer details.
c. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You can
create the Party A/c on the fly by pressing Alt + C.
d. Dispatch
Details: Enter the Dispatch Details, as needed and press Enter.
You can
choose to enable the options for Order
Details by pressing F12
(Configure).
e. Party Details: You can update the buyer
details while recording the transaction and print the same in the invoice.
The Place of Supply field is prefilled with
the party ledger state. You consider a sale as an interstate sale under GST if
the buyer is from a different state than your company state.
Your regular customer may need specific
details, such as the address with the landmark, alternative contact number, and
so on, to appear in the printed invoice. In such cases, create the party
account with the required details and select the same party account in the
Buyers field.
f. As
always, you can press Ctrl + A to
save and proceed.
3. In
the Sales ledger, select the common
sales ledger.
Ensure
that GST applicability is set to Applicable and that no GST rate is
defined.
4. Enter
stock item details.
g. Name of Item: Select the stock item.
For GST
to be calculated in the voucher, ensure that the stock item is configured with
the correct GST Rate.
h. Specify
Quantity and Rate.
If you
do not see the required item in the list, you can create the stock item on the
fly by pressing Alt + C.
5. Select
the tax ledger IGST for interstate
sales.
GST is
calculated based on the tax rates defined in the stock item ledger.
If you are selling goods with the same GST
rate then you can define the GST rate at the time of creating the company. In
such cases, the GST gets calculated based on the rate defined when creating the
company.
6. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
7. Provide
Narration, if needed, and press Ctrl + A to save the sales voucher.
8. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. In
the Print screen, press C (Configure) to configure the print
options for your invoice, if needed.
§ To
change the printer, C (Configure)
> press F6 (Printer) > select a printer from the List of Printers > and press Enter.
§ To
print multiple copies of the invoice, press F5 (No. of Copies) and Enter. You can also select the Type of Copy (for example, Original,
Duplicate, or Triplicate, as needed).
§ To
view the GST breakup of each item, go to C
(Configure) > set Show Item-wise GST
details as Yes.
c. Press
I (Preview) to check the invoice
before printing if needed.
d. Press
P (Print) to print the invoice.
You can generate an e-Invoice and e-Way
Bill, if needed.
Now that you have recorded an interstate
supply of goods, you can see the transaction in the Interstate Supplies under
Outward Supplies of GSTR-1.
Interstate supply of services | Accounting
Invoice mode
When recording the sale of services,
choose cash or bank for cash sales and party ledger for credit sales., record
sales of services and the total amount using the Accounting Invoice mode. An
accounting ledger is not required as there is no stock item to allocate. In the
Party Details screen, the Place of Supply is prefilled with the party ledger
state. If the Place of Supply differs from your company state then you need to
record the sales transaction as an interstate supply of services. To record the
tax for interstate sales, you must use the IGST ledgers.
1. Open
the Sales Voucher in the Accounting Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change mode) > select Accounting Invoice.
2. Specify
the buyer details.
a. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales, and press Enter.
You can
create the Party A/c on the fly by pressing Alt + C.
b. Dispatch
Details: Enter the Dispatch Details, as needed and press Enter.
You can
choose to enable the options for Order
Details by pressing F12
(Configure).
c. Party Details: You can update the buyer
details while recording the transaction and print the same in the invoice.
The Place of Supply field is prefilled with
the party ledger state. You consider a sale as an interstate sale under GST if
the buyer is from a different state than your company state.
d. As
always, press Ctrl + A to save and
proceed.
Your regular customer may need specific details,
such as the address with the landmark, alternative contact number, and so on,
to appear in the printed invoice. In such cases, create the party account with
the required details and select the same party account in the Buyers field.
3. Enter
Particulars details.
a. Select
the service ledger.
For GST
to be calculated in the voucher, ensure that the service is configured with the
correct GST Rate.
b. Specify
the Amount.
c. Create
the service ledger on the fly by pressing Alt
+ C.
4. Select
the tax ledgers IGST for interstate
sales.
GST is
calculated based on the tax rates defined in the service ledger.
If you are selling services with the same
GST rate then you can define the GST rate at the time of creating the company.
In such cases, the GST gets calculated based on the rate defined when creating
the company.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view
the detailed breakup of the tax.
6. .
Provide Narration, if needed, and
press Ctrl + A to save the sales
voucher.
7. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. In
the Print screen, press C (Configure) to configure the print
options for your invoice, if needed.
§ To
change the printer, C (Configure)
> press F6 (Printer) > select a printer from the List of Printers > and press Enter.
§ To
print multiple copies of the invoice, press F5 (No. of Copies) and Enter. You can also select the Type of Copy (for example, Original,
Duplicate, or Triplicate, as needed).
§ To
view the GST breakup of each item, go to C
(Configure) > set Show Item-wise GST
details as Yes.
c. Press
I (Preview) to check the invoice
before printing if needed.
d. Press
P (Print) to print the invoice.
You can generate an e-Invoice and e-Way
Bill, if needed.
Now that you have recorded an interstate
supply of services, you can see the transaction in the Interstate Supplies under
Outward Supplies of GSTR-1.
You might be selling to consumers in
addition to providing goods or services to businesses. The supply can be local
or interstate depending on the place of supply. Depending on the transaction
value and the party’s location, you can find the transactions in GSTR-1 under
the B2C (Large) Invoices or B2C (Small) Invoices heading. In cases where the
value of interstate sales is more than 2.5 lakhs, the transaction is captured
as B2C (Large) Invoices, and in cases where all local sales transactions and
the value of interstate sales is less than 2.5 lakh, the transaction is
captured as B2C (Small) Invoices.
In this section
1. B2C
(Large) Invoices
2. B2C
(Small) Invoices
B2C (Large) Invoices
When the value of interstate sales is more
than 2.5 lakhs, the transaction is captured as B2C (Large) Invoices.
While recording a sales voucher in Item
Invoice mode,
1. In
the Party A/c name, select the
unregistered customer ledger.
2. Enter
the stock item details.
a. Name of Item – Select the stock item.
b. Specify
Quantity and Rate.
3. Select
the appropriate GST ledger based on the Place of Supply. CGST and SGST are
applicable for sales within the state and IGST
is applicable for interstate sales.
4. As
always, press Ctrl + A to save the
sales voucher.
Now that you have recorded a supply to an
unregistered consumer where the total value of sales is more than 2.5 lakhs,
you can see the transaction in the B2C
(Large) Invoices – 5A, 5B of GSTR-1.
B2C (Small) Invoices
When the value of interstate sales is less
than 2.5 lakhs, the transaction is captured as B2C (Small) Invoices along with
all local sales.
While recording a sales voucher in Item
Invoice mode,
1. In
the Party A/c name, select the
unregistered customer ledger.
2. Enter
the stock item details.
a. Name of Item – Select the stock item.
b. Specify
Quantity and Rate.
3. Select
the appropriate GST ledger based on the Place of Supply. CGST and SGST are
applicable for sales within the state and IGST
is applicable for interstate sales.
4. As
always, press Ctrl + A to save the
sales voucher.
Now that you have recorded a supply to an
unregistered consumer where the total value of sales is less than 2.5 lakhs,
you can see the transaction in the B2C
(Small) Invoices – 7 of GSTR-1.
Supplies when Buyer and Consignee are Different
When you supply the goods or services,
usually those are delivered to the buyer. However, sometimes the buyer may
instruct you to deliver the goods or services to another party
(Consignee). UCI-AC enables the option to
update both buyer and consignee details in the party details while creating the
voucher. The location of the supply determines whether the sale is local or
interstate.
While recording a sales invoice,
1. In
the Party Details screen, press F12
(Configure) > set Provide separate
Buyer and Consignee details to Yes.
The
Consignee (Ship to) section appears in the Party
Details screen.
2. Mention
the specifics of Consignee details
a. Consignee
name
b. Mailing
Name
c. Address
d. State
e. Press
Ctrl + A to save the Party Details
screen.
3. Provide
other details, as needed, and press Ctrl
+ A to save the sales voucher.
4. Print
both buyer and consignee details.
a. Press
Alt + P (Print) in the invoice >
press Enter on Current > press C
(Configure).
b. Set
the option Show Consignee details to Yes.
Now, you can mention the consignee name
and other details as well in your invoice and also print the same.
As per business practice, you need to print
the sales invoice once you record the sales voucher. You can personalise your
invoices and include GST details in the invoice. A GST sales invoice, apart
from other details, must include GST rates, the GSTIN numbers of the buyer and
seller, an HSN/SAC code, and party contact details.
Print GST rate details in the Invoice
When printing the sales invoice, you can
configure it to print the GST rates in the invoice. You can configure it and
print the GST rate item-wise or consolidated.
1. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
2. Press
C (Configure) > Set Show GST Analysis as Yes.
3. To
view the GST breakup of each item, go to C
(Configure) > set Show Item-wise GST
details as Yes.
4. Press
I (Preview) to view the invoice
before printing or press P (Print)
to print the invoice.
Print HSN/SAC in the Invoice
When printing the sales invoice, you can
configure it to print the HSN/SAC codes in the invoice. You can configure it
and print the HSN/SAC code item-wise or consolidated.
1. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
2. Press
C (Configure) > set Show HSN/SAC details as Yes.
3. Ensure
that the HSN/SAC details are updated when creating the company..
If your company sells multiple products
then update the HSN/SAC details at the stock item level.
Print the party’s contact details in the
pre-printed format
In the pre-printed format, you can update
the party contact details and print the same on the invoice.
1. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
2. Select
F9 (Pre-Printed Paper).
If you
are in Rel 2.1 and earlier, ensure that Reduce space between Address and Name
of Items/Particulars is set to No.
3. Update
the party contact details in the ledger to print the same in the pre-printed
format.
Record Supply of Goods with Different Tax Rates in the
same Invoice
A single supply can have multiple items
with different GST rates and HSN/SAC details when you supply goods or services.
You can record the supply of goods with different tax rates in the same
voucher. While creating the stock items, you can define the applicable GST
rates. UCI-AC takes care of the tax computations based on the GST rates defined
for each stock item. There is no change in the recording process of the sales
voucher with multiple GST rates for stock items. You have to configure the
correct GST rates and HSN/SAC details in the stock item so that the tax
computation is done correctly which you can see in the tax analysis screen.
While recording a sales voucher in Item
Invoice mode
1. Provide
different stock items with different tax rates defined in the stock item
master.
2. Select
the tax ledgers CGST and SGST for local sales and IGST for interstate sales.
3. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view
the detailed breakup of the tax.
4. Provide
other details, as needed, and press Ctrl
+ A to save the sales voucher.
5. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
b. Alternatively,
press Alt + P (Print) > Current.
c. Press
C (Configure) to configure the
invoice or press P (Print) to print
the invoice.
Similarly, you can record services with
different tax rates.
Record Vouchers and Adjust Allocation Difference using
Voucher Class
You can create a voucher class and set the
ledger to adjust any allocation difference of decimal. In
UCI-AC, you can choose whether you want to
adjust the difference in decimal against First Ledger or Last Ledger. You can
record sales using the voucher class once you create it with such
configurations. It automatically adjusts the decimal difference against the
ledger selected by you.
1. In
the Voucher Type Alteration screen
of Sales, press Enter on the Name of Class and add the voucher class
name.
2. Configure
the Default Accounting Allocations.
a. Set
the option Enable default accounting allocations to Yes.
·
Enable Set/Alter Default Accounting Entries. The
Default Accounting Entries screen appears.
·
Press F12 (Configure) > enable Allow to change
default Accounting Allocation method.
·
Press Ctrl
+ A to save.
b. Under
Adjust Allocation Difference (if any) to, select First Ledger and press Enter.
Once you set First Ledger under Adjust Allocation different (if any) to, you
cannot apply Rounding Method to the First Ledger as the adjustment is already
set to it.
c. Set
up the sales and tax ledger with percentages.
3. Press
Ctrl + A to save the voucher class.
You can also follow the above steps in the
Voucher Type or even Stock Item master if you have configured Accounting
Allocations in those masters.
You can now record the sales voucher with
the voucher class and if there is any difference in the decimal it adjusts to
the First Ledger, as selected.
The change in configuration as
demonstrated in the above procedure will not be applicable to the transactions
you have already recorded. However, you can correct the tax calculation
manually in the transactions.
While recording a sales invoice, To view
the GST Portal view of Invoice, press Ctrl + O (Related Reports) and select GST
Portal view of Invoice.
You can also check the GST Portal view of Invoice after
recording a voucher, in the voucher alteration mode by simply pressing Ctrl + O (Related Reports) and
selecting GST Portal view of Invoice.
In your business, you may be selling items
or goods and services at discount to your customers.
And you will need tax computation to be
done after considering the discount on the amount in the Invoice., you can
record sales invoices for goods and services on discount so that the tax
payable is computed considering the discount.
GST Sales with Discount at Item Level
You can record GST sales with discount at
item level. While recording a sales transaction, you can easily enter the
discount rate or amount for each stock item. To consider discounts for GST
sales, you have to create a discount ledger and then select it in the invoice.
GST is calculated by considering the
discount entered for each stock item after you enable the cash/trade discount
option in the invoice. The corresponding tax values will appear in the GST
analysis of items on the printed invoice.
Create discount ledger for goods
1. Gateway
of Tally > Create > type or select Ledger > and press Enter.
Alternatively,
press Alt + G (Go To) > Create Master >type or select Ledger > and press Enter.
2. Type
of Ledger: Select as Discount from
the Type of Ledger list.
Now the option Is GST Applicable? will be set to Not Applicable by default.
Record GST sales of goods with discount
1. Gateway
of Tally > Vouchers > press F8 (Sales).
Alternatively,
press Alt + G(Go To) > Create Voucher > press F8 (Sales).
2. Select
the Party A/c name and the Sales
ledger.
3. Select
the stock item, and enter the Quantity
and Rate.
4. In
Discount, enter the discount rate or
the discount amount applicable for the stock item.
5. Select
the discount ledger. The total discount amount will be computed and displayed. Note: You can alter the total discount
amount, if required. For example, if you want to allow a maximum discount of Rs
50,000 in a bill, and your total discount amount exceeds this amount, you can
alter the final amount. The discount will be apportioned according to the
discount given at the item level.
6. Select
the applicable GST ledgers.
7. To
Display the Tax Analysis screen,
press Ctrl + O (Related Reports)
> type or select GST – Tax Analysis>
and press Enter.
8. To
Display the Tax Analysis screen,
press Ctrl + I (More Details) >
type or select GST – Tax Analysis>
and press Enter.
·
Press Alt
+ F5 (Detailed) to view in detailed mode of tax break-up details.
9. .
In the sales invoice, press Ctrl + P
and press P (Print) to print the
invoice
Record GST Sales of Service with Discount
Your business may involve providing
services such as consultancy, distribution, branding & communications, or
engineering & construction at a discounted price. In such cases, you can
record a sales invoice with service and discount ledgers. You will need to
record such a sales invoice for services on discount with a service ledger and
a discount ledger.
If you haven’t created service ledger and
discount ledger for services, then you can either create them before recording
the sales invoice or on the fly while recording the same.
Create service ledger
To create a service ledger that you can
use to record the sales of services, follow the steps to create ledgers with
changes mentioned in the procedure provided below.
To know how to create a ledger, click here.
1. Select
Sales Accounts from the List of Groups.
2. Set
Is GST Applicable to Applicable.
3. Specify
GST details.
a. Set
Set/Alter GST Details to Yes.
b. Under
Taxability, select Taxable.
c. Enter
the Integrated Tax and Cess, if applicable.
d. Press
Ctrl + A to save.
4. Under
Type of Supply, select Services.
The service ledger appears as shown below.
5. As
always, press Ctrl + A to save the
ledger.
Create discount ledger for services
To create a discount ledger to be used for
the sales of services, follow the steps for creating ledgers with changes
mentioned in the procedure provided below.
1. Select
Indirect Expenses from the List of Groups.
2. Set
Is GST Applicable to Not Applicable.
3. Under
Include in assessable value calculation for, select GST.
This will
ensure that GST is computed after deducting discount from the Amount of service
in a transaction.
4. Under
Appropriate to, select Services.
The
discount ledger appears as shown below.
5. As
always, press Ctrl + A to save the
ledger.
Record GST sales transaction with discount
When you record a transaction with
services, you will need to record it in the Accounting Invoice mode. Follow the procedure provided below.
1. Gateway
of Tally> Vouchers > press F8 (Sales).
Alternatively,
press Alt + G(Go To) > Create Voucher > press F8 (Sales).
2. Press
Ctrl + H (Change Mode) > select Accounting Invoice from the List of Modes/Usages and press Enter.
3. Select
the Party A/c name and enter details
Party Details screen, as applicable.
4. Under
Particulars:
a. Select
the service ledger and enter the Amount,
as applicable.
Select Discount
ledger and enter the discount in percentage with minus sign.
b. The
discount will get calculated under Amount.
Select
the GST ledgers, as applicable.
c. The
tax will get calculated.
5. To
display the Tax Analysis screen,
press Ctrl + O (Related Reports) > type or select GST – Tax Analysis > and press Enter.
Press Alt
+ F5 (Detailed) to view in detailed mode of tax break-up details. The Tax Analysis screen appears.
6. Enter
the Narration, if needed.
The Sales Invoice
appears as shown below.
7. To
print, from the Sales Invoice, press Ctrl
+ P > P (Print).
The print of the Sales
Invoice will appear as shown below.
Sales Returns and Price Hike after Supply
There may be instances of sales returns
for the entire supply or for a portion of the supply when you sell goods or
services. Such sales returns may occur for a variety of reasons, including
lowquality products, damage to the product, late delivery, surplus delivery,
and more. If you sold the products or services with GST, you must record the
sales return with GST. The GSTR-1 report represents the effect of these sales
returns. The customers can return the sold products in the same month of sale
or any subsequent month. UCI-AC automatically updates the applicable tax as per
the sales return and reflects the report in the appropriate period for both
situations.
You can record sales returns using Credit
Notes and also specify the reason for the return. The sales returns can be after or before receiving the payment, and the accounting method for both such
cases is different., you can record both instances of sales returns. Once you
record the sales return, you must share the Credit Note with your customer so
they can adjust the amount on their next purchase. In case the customer wants
to exchange the product, you can record the Credit Note and adjust it with the
new sales invoice.
There can be scenarios where the price of
the product increases after sales. Price increases after supply can occur as a
result of an immediate change in the government’s tax rate or even price
fluctuations of specific goods. In some cases, you may also need to increase
the price of the goods sold if you have considered an incorrect tax rate or the
rate of the goods. You can record the price hike after supply, using Debit
Note.
Sales Return in the same GST return period
Once you have sold the goods or services,
there can be instances of sales returns within the same Return period. If you
record a Credit Note against a sales invoice in the same Return period, then
such sales returns reflect in the same GST return period. It appears in GSTR-1
under Credit or Debit Notes (Registered) – 9B or Credit or Debit Notes
(Unregistered) – 9B, depending on whether the customers are registered or
unregistered.
For example, if you have recorded a sales
voucher on 10-10-2022 and you are recording a Credit Note against that sale on
15-10-2022, then the tax details for the sales return are visible in the GSTR-1
for the period of October 2022.
If you are recording the sales return of a
few items because of damaged goods or low-quality products and so on, then you
can record the same using a Credit Note.
Here the Credit Note is recorded in Item
Invoice mode.
1. Open
the Credit Note in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or
select Credit Note > and press Enter.
b. Alternatively,
Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or
select Credit Note > and press Enter.
c. Press
Ctrl + H (Change Mode) > select Item Invoice.
2. Specify
the buyer details.
a. Party A/c name: Select the initial
recipient of the goods and press Enter.
b. The
Receipt Details screen appears.
Receipt
Details: Enter the Receipt Details, as needed.
Under Original Invoice Details, update the Original Invoice No. and Date of the original sales transaction
against which you are recording a sales return and press Enter.
c. Party Details: update the original
buyer details.
3. Select
the Sales ledger to allocate the
stock items.
4. Enter
the stock item details.
a. Name of Item – Select the stock item
that you have received as a sales return. b. Specify Quantity and Rate.
5. Select
the GST ledgers.
6. .
Set the option Provide GST/e-Way Bill details to Yes, and select the reason for the sales returns from the List of Reasons.
o after
sales.
o 04-Correction in Invoice – When there
is a change in the invoice raised that leads to a change in the tax amount.
o 05-Change in POS – When there is a
change in place of supply that leads to a change in the tax amount.
o 06-Finalization of Provisional assessment
– When there is a change in price or rate after the department issues a
notification about the finalized price of the goods or services.
o 07-Others – Any other nature of return.
7. Press
Ctrl + A to accept the Additional Details : Local Sales – Taxable screen.
8. .
Press Ctrl + A to save the Credit
Note.
9. Print
the Credit Note.
a. In
the Credit Note voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
C (Configure) to configure the print
options for your invoice, if needed. While printing the Credit Note, the title
appears based on the Taxability of the stock items or ledgers:
o Tax Invoice for taxable transactions
and exports.
o Bill of Supply for exempt or nil-rated
transactions.
c. Press
I (Preview) to check the invoice
before printing, if needed.
d. Press P (Print) to print.
You can view the Credit Note recorded in
the GSTR-1 report.
Press Alt
+ G (Go To) > GSTR-1 >
press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-1 > press Enter.
Sales Return in the subsequent GST return period
Along with the sales return in the same
period, there can be sales return after a few months of sales. In that case,
you must record the Credit Note for the month when the goods were returned.
Such sales returns then reflect in the subsequent month of the GST return
period.
For example, if you have recorded a sales
voucher on 11-10-2022 and you are recording a Credit Note against that sale on
12-12-2022, then the tax details for the sales return are visible in the GSTR-1
for the period of December 2022.
In this case, if you are recording the
sales return of a few items because of damaged goods, then
you can record the same using a Credit Note. Here the Credit Note is
recorded in Item Invoice mode.
To learn how to record a Credit Note,
click here.
You can view the Credit Note recorded in
the GSTR-1 report.
·
Press Alt
+ G (Go To) > GSTR-1 >
press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-1 > press Enter.
Press F2 to change the period when the goods were returned.
The price of the goods may change after you
have sold the goods. Such a change in the price may happen due to an immediate
change in the tax rate imposed by the government or even due to price
fluctuations of certain goods. In some cases, you may also need to increase the
price of the goods sold, if you have considered an incorrect tax rate or the
rate of the goods.
, you can record the effect of increasing
the price after sales using a debit note. This may have an impact on GST as
this leads to a change in the assessable value of sales.
1. Open
the Debit Note in Item Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or
select Debit Note and press Enter.
Alternatively,
Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or
select Debit Note and press Enter.
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
2. Specify
the buyer details.
a. Party A/c name: Select the initial
recipient of the goods and press Enter.
b. Dispatch
Details: Enter the Dispatch Details, as needed.
Under Original Invoice Details, update the Original Invoice No. and Date of the original sales transaction
against which you are recording the price hike and press Enter.
c. Party Details: update the original
buyer details.
3. In
the Ledger account, select the sales
ledger.
4. Enter
the stock item details.
a. Name of Item – Select the stock item
that you have sold initially.
b. Do
not specify Quantity and Rate.
c. In
the Amount column, enter the balance
amount after the price hike.
5. Select
the GST ledgers.
6. .
Set the option Provide GST details to Yes,
and select the reason for the sales returns from the List of Reasons.
7. Press
Ctrl + A to accept the Additional Details : Local Sales – Taxable screen.
8. .
Press Ctrl + A to save the Debit
Note.
You can view the Debit Note recorded in
the GSTR-1 report.
Press Alt
+ G (Go To) > GSTR-1 >
press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-1 > press Enter.
Supplies with Cess, Discount, MRP Inclusive of GST,
Slab Rate
In your business, for some goods, you
might have to charge a cess along with GST as per Section 8 of The Goods and
Services Tax (Compensation to State) Act, 2017. This topic covers the recording
of the sale of items with cess and also the sale of goods or services with
discounts. Additionally, you can set the slab rates of stock items based on MRP
or Item rates before recording the sales voucher. Later, you can record the
sales transaction with the defined slab rates. You can also sell goods and
services with an MRP Inclusive of tax. MRP stands for Maximum Retail Price and
it is the highest price that can be charged for a product as decided by the
manufacturer. If MRP is listed as Inclusive of Tax, it means the price of the
product already includes the applicable taxes and the customer does not have to
pay the tax separately.
GST cess is a compensation cess that is
charged on both local and interstate supply of goods and services. Cess is
charged to compensate for the loss of revenue in a state. If you are selling
certain goods like tobacco, cigarettes, aerated water, and more, you need to
pay cess to the government., there is more than one way to calculate cess for
the sale of goods and services. You can record the sale by calculating cess
either on the value or on quantity or on both. If you are selling goods, then
you can calculate cess based on quantity or based on value and quantity. On the
other hand, if you are selling services then cess is calculated based on value.
Once you record the transaction, you can print the cess details in your
invoice. If required, you can also override the cess valuation for your
transaction.
While selling goods or services, you might
want to give discounts to your customers as part of your business policy. Such
discounts can be either for each item separately or on the total invoice
amount. In both cases, the tax is calculated after deducting the discount
amount.
You can also create a voucher class and
include the tax details. Going forward, when you record the sales transaction,
with the voucher class, the total amount is calculated including the tax. From
the voucher alteration screen, you can view the breakup of your total amount,
displaying the sales and tax ledgers. You can create slab rates based on MRP or
item rates even before recording the transactions. You might be selling a
product whose tax rate depends on the product rate. In such cases, you can set
up a slab rate and define the slab-wise item rate along with the tax rate for
each slab. Once you start recording the transaction, depending on the rate you
select for the item, the tax gets calculated based on the rate defined in the
slab rate.
, you can record all the above-mentioned
transactions using a sales voucher. You just need to configure your Sales
ledger and your stock items, and you can record the transactions with ease.
Record Sales of Items with Cess
If you are in the business of selling
tobacco, cigarettes, pan masala, coal, and more, you might have to charge cess
along with GST. The cess is calculated based on either value, quantity, or
both. While creating the stock item, you need to select the cess valuation type
along with the cess rate. At the time of recording the sales voucher, once you
select the cess ledgers, the amount gets calculated as per the rate defined. As
per the new Notification No. 02/2023 issued by the Government of India, there
is a change in the calculation of compensation cess for Pan Masala and Tobacco
products. The notification introduces a retail sale price-based compensation
cess system. In this section
1. Record
the sale of items with a cess on value and quantity
2. Record
the sale of items with a cess on value or quantity
3. Compensation
Cess for Pan Masala and Tobacco Products
4. Print
cess on the invoice
Record Sales of Items with Cess on Value
and Quantity
When you are recording the sales voucher
with cess, you need to create the stock item by configuring the cess details.
You can record the sale of items by calculating the cess based on value and
quantity.
1. Configure
the stock items for the calculation of cess based on quantity and value.
a. In
the Stock Item Alteration screen, update the HSN/SAC & Related Details and
GST Rate & Related Details.
b. Select
Cess Valuation Type as Based on Value and Quantity.
c. Under
Cess Rate, enter the cess percentage and cess rate per unit.
d. Press Ctrl + A to accept the screen.
2. Open
the sales voucher in Item Invoice
mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
3. Enter
the Party A/c name, Sales ledger and stock item details.
4. Select
the appropriate GST ledgers. CGST
and SGST for local sales and IGST for interstate sales.
5. Select
the cess ledgers defined with valuation types Based on Quantity and Based
on Value. The taxes are calculated based on the cess percentage and cess
rate per unit defined in the stock item master.
6. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
7. Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
8. Press
Esc to return to the sales invoice.
9. As always, press Ctrl + A to save the sales voucher.
You have now recorded sales both with cess
on value and quantity.
Record sales of items with cess on
quantity or value
When you are recording the sales voucher
with cess, you need to create the stock item by configuring the cess details.
You can record the sale of items by calculating the cess based on value or
quantity whichever is higher. In this case, we have considered cess calculation
based on quantity.
1. Configure
stock items for the calculation of cess based on quantity or value.
a. In
the Stock Item Alteration screen, update the HSN/SAC & Related Details and
GST Rate & Related Details.
b. Select
Cess Valuation Type as Based on Quantity.
c. Under
Cess Rate, enter cess rate per unit.
d. Press
Ctrl + A to accept the screen.
2. Open
the sales voucher in Item Invoice
mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
3. Enter
the Party A/c name, Sales ledger and stock item details.
4. Select
the appropriate GST ledgers. CGST
and SGST for local sales and IGST for interstate sales.
5. Select
the cess ledgers defined with valuation types Based on Quantity. The taxes are calculated based on the cess rate
per unit defined in the stock item master.
6. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
7. Press
Esc to return to the sales invoice.
8. As
always, press Ctrl + A to save the
sales voucher.
You have now recorded sales with cess on
quantity.
Compensation Cess for Pan Masala and
Tobacco Products
The Government of India has issued
Notification No. 02/2023- Compensation Cess (Rate) dated
March 31, 2023, to change the compensation
cess on tobacco and pan masala products. The new notification replaces the
existing ad valorem system and introduces a retail sale price (RSP) based
compensation cess system.
To comply with this new system, you need
to calculate the compensation cess on your tobacco and pan masala products
based on their retail sale price and the applicable compensation cess rate,
which can be found in the Schedule mentioned in the notification.
For instance, if you want to calculate the
compensation cess on Pan Masala, you can refer to the notification to find that
the GST compensation cess rate is 0.32R per unit, where R is the retail sale
price of the product. You can then apply this rate to the retail sale price of
your product to calculate the cess.
Illustration
To calculate the Compensation Cess on
tobacco and pan masala products, you need to follow the steps outlined below:
Step
1: Understand the new notification – Notification No. 02/2023- Compensation
Cess (Rate) dated March 31, 2023 has been issued to change the compensation
cess on tobacco and pan masala from ad valorem to RSP based. This means that
the compensation cess will now be based on the retail sale price (RSP) of the
product.
Step
2: Check the compensation cess rate for the specific product – The
compensation cess rate for pan masala and all unbranded/branded goods other
than pan masala containing tobacco ‘gutkha’ and “Homogenised” or
“reconstituted” tobacco, bearing a brand name, has been changed. You can find
the updated compensation cess rate in the Schedule mentioned in the
notification.
Step
3: Calculate the Compensation Cess – To calculate the compensation cess on
a specific product, you need to know its retail sale price and the applicable
compensation cess rate.
For example, let’s calculate the
compensation cess on Pan Masala using the details mentioned in the
notification:
The rate of GST compensation cess is 0.32R
per unit
The retail sale price of one unit (pouch)
of Pan Masala is Rs. 10
So, the GST compensation cess leviable
would be 0.32R = 0.32*10 = Rs. 3.2 per unit (pouch)
If Pan Masala is sold in cartons/boxes,
you can follow one of the below calculation methods to configure the cess in
the item master:
Method
1: Cess per unit calculation
If the MRP of the unit is Rs. 13
Each box contains 144 units (1 box = 144
units)
The government cess rate is 0.43 per pouch
In the item master configuration, the cess
per unit can be mentioned as 13*0.43 = 5.59
Method
2: Cess on carton/box calculation
If the MRP of 1 box (which contains 144
units) is Rs. 1872 (13Rs*144units)
The government cess rate is 0.43 per pouch
In the item master configuration, the cess
per carton/box can be mentioned as 1872*0.43 = 804.96 Please note that this new
notification will come into force on the 1st day of April, 2023, and you must
ensure that your item master is updated accordingly.
Compensation Cess per unit calculation
You can configure a stock item with
compensation cess and record an invoice.
1. Configure
the stock item for Cess calculation
a. In
the Stock Item Alteration screen, update the HSN/SAC & Related Details and GST Rate & Related Details.
b. Select
Cess Valuation Type as Based on Quantity.
c. Under
Cess Rate, enter cess rate per unit.
Here in
this example, cess is defined on 1box of Pan Masala containing 144 pouches
If the
MRP of 1 box (which contains 144 units) is Rs. 1872 (13Rs*144units)
The
government cess rate is 0.43 per pouch
The
cess per carton/box can be mentioned as 1872*0.43 = 804.96
d. Press
Ctrl + A to accept the screen.
If your selling unit of Pan Masala is 1
pouch then you can mention Cess as 5.59 / unit as explained below
If
the MRP of the unit is Rs. 13
The
government cess rate is 0.43 per pouch
The
cess per unit can be mentioned as 13*0.43 = 5.59
2. Open
the sales voucher in Item Invoice
mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Item Invoice.
3. Enter
the Party A/c name, Sales ledger and stock item details.
4. Select
the appropriate GST ledgers. CGST
and SGST for local sales and IGST for interstate sales.
5. Select
the cess ledgers defined with valuation types Based on Quantity.
The taxes
are calculated based on the cess rate per unit defined in the stock item
master.
6. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
To view
the GST – Tax Analysis screen, press
Ctrl + I (More Details) > type or
select GST – Tax Analysis > and
press Enter.
7. Press
Alt + F5 (Detailed) to view the
detailed mode of tax break-up for the stock item selected in the invoice.
8. .
Press Esc to return to the sales
invoice.
9. Accept
the screen. As always, you can press Ctrl
+ A to save.
Print cess in the sales invoice
1. On
the sales voucher, press Ctrl + P to
open the Voucher Printing screen.
2. Press
C (Configure) for print
configurations screen
Show GST Analysis – Set this option to Yes.
3. Press
Esc and press P (Print) to print. The printout of the sales invoice appears as
shown below, with the cess values.
GST Sales of Goods and Services with Item Level Discount
While selling goods or services, you might
want to give discounts to your customers as part of your business policy. Such
discounts can be either item level-wise or even on the total amount. In both
cases, the tax is calculated after deducting the discount amount.
In this section
1. Sale
of goods with discount
2. Sale
of services with discount
Sale of goods with discount
You can record the sale of goods after
giving a discount at the item level and the tax gets calculated after
considering the discount.
1. While
creating the discount ledger under Indirect
Expenses, ensure the Type of Ledger is
selected as Discount.
2. While
recording sales of goods with the discount ledger.
a. In
the sales voucher, press F12
(Configure) > set Provide Cash/Trade
Discount to Yes.
b. Enter
the stock item details along with Quantity
and Rate.
c. Below
each stock item, in the Discount field,
enter the discount rate or the discount amount applicable for the stock item.
d. Select
the Discount ledger. The total
discount amount is displayed.
You can alter the total discount amount if
required. For example, if you want to allow a maximum discount of Rs 50,000 on
a bill, and your total discount amount exceeds this amount, you can alter the
final amount. The discount will be apportioned according to the discount given
at the item level.
3. Select
the appropriate GST ledgers. CGST
and SGST for local sales and IGST for interstate sales.
4. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
5. Press
Esc to return to the sales invoice.
6. .
As always, press Ctrl + A to save
the sales voucher.
7. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
I (Preview) to preview the invoice
before printing or press P (Print)
to print the voucher.
You have recorded a sales voucher for the
sale of goods with a discount.
Sales of services with discount
You can record the sale of services after
giving a discount and the tax gets calculated after considering the discount.
i. Create
a discount ledger for services under Indirect
Expenses.
b. In
the Ledger Alteration screen, set Include in assessable value calculation to
GST.
c. Select
Services in the Appropriate to field.
There are 3 options in Include in assessable
value calculation for Appropriation.
·
Goods
·
Goods and Services
·
Service.
When you select Services and Goods and
Services, the Method of calculation is automatically set to Based on Value.However, for Goods, the user needs to choose the
Method of calculation.
o Based on Quantity: Apportions the
expense value based on quantity of the stock item. More quantity means more
share of expense value.
o Based on Value: Apportions the expense
value based on value of each stock item/service ledger more value means more
share of expense value.
b. As
always, press Ctrl + A to save the
ledger creation.
1. While
recording sales of services with the discount ledger.
a. Select
the service ledger and enter the Amount.
b. Select
the Discount ledger and enter the
discount in percentage with a minus sign.
c. The
discount gets calculated under Amount.
2. Select
the appropriate GST ledgers. CGST
and SGST for local sales and IGST for interstate sales.
3. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5 (Detailed) to view the
detailed breakup of the tax.
4. Press
Esc to return to the sales invoice.
5. .
As always, press Ctrl + A to save
the sales voucher.
6. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
I (Preview) to preview the invoice
before printing or press P (Print)
to print the voucher.
7. You
have recorded a sales voucher for the sale of services with a discount.
Invoices with MRP Inclusive of Tax
MRP stands for Maximum Retail Price and it
is the highest price that can be charged for a product as decided by the
manufacturer. If MRP is listed as Inclusive of Tax, it means the price of the
product already includes the applicable taxes and the customer does not have to
pay the tax separately. In your
business, you can supply goods at MRP Inclusive of Tax by creating a voucher
class. Once you have created or altered a voucher class with the necessary
configurations, you can record sales with MRP Inclusive of Tax. When you select
the voucher class, there is no need to select the tax ledgers separately.
In this section
1. Create/Alter
voucher class for MRP inclusive of tax
2. Configure
accounting allocations in the stock item master
3. Record
sales with MRP inclusive of GST
Create/Alter voucher class for MRP
inclusive of tax
In order to record the supply of goods at
MRP Inclusive of Tax, you need to create the voucher class in the Sales Voucher
type.
1. In
the Voucher Type Alteration screen of Sales, press Enter on the Name of Class
and add the voucher class name.
2. Configure
the Default Accounting Allocations.
a. Set
the option Enable default accounting allocations to Yes.
·
Enable Set/Alter Default Accounting Entries..
o Press
F12 (Configure) > enable Allow to change default Accounting Allocation
method.
o Press
Ctrl + A to save.
b. Under
Adjust Allocation Difference (if any) to, select First Ledger and press Enter. Once
you set First Ledger under Adjust Allocation different (if any) to, you cannot
apply Rounding Method to the First Ledger as the adjustment is already set to
it.
c. Set
up the sales and tax ledger with percentages.
d. Press
Ctrl + A to save the voucher class.
The change in configuration as
demonstrated in the above procedure will not be applicable to the transactions
you have already recorded. However, you can correct the tax calculation
manually in the transactions.
Configure accounting allocations in the
stock item master
Before you start recording the sales
voucher, you need to configure the accounting allocation in the stock item
master.
1. Open
the stock item alteration screen.
a. Enable
Set/modify default ledgers for invoicing.
If this
option is not visible, press F12 (Configure) > enable Set default Accounting
Allocations for Stock Items (in Invoice Mode).
b. In
the Default Accounting Allocations for Sales Invoice screen, press F12
(Configure) > set Allow to change default Accounting Allocation method to
Yes and press Enter.
c. Under
Adjust Allocation difference (if any) to, select First Ledger and press Enter.
Once you set First Ledger under Adjust Allocation different (if any) to, you
cannot apply Rounding Method to the First Ledger as the adjustment is already
set to it.
d. Set
up the sales and tax ledger with percentages.
e. Press
Ctrl + A to save the voucher class.
Record sales with MRP inclusive of GST
After the voucher class is created and the
stock item master is configured, you can record the sales with MRP Inclusive of
GST after selecting the voucher class in the sales voucher.
1. Record
the sales voucher with the Voucher Class
created.
a. In
the sales voucher, select the Voucher
Class.
b. Provide
the stock item details along with Quantity
and Rate.
There is
no need to select the GST ledgers.
2. To
view the tax calculation, open the invoice in alteration mode.
Press Enter on the Amount column.
You can view
the auto-calculated value for the default ledgers along with the tax breakup.
You now know how to create voucher class,
make configurations for accounting allocations and finally record the sales.
Sales of Stock Items with Slab-wise Tax Rates
In your business, you might be selling
goods whose tax rate depends on the rate of the goods. In such cases, you can
set up a slab rate and define the slab-wise item rate along with the tax rate
for each slab. Once you start recording the transaction, depending on the rate
you select for the item, the tax gets calculated based on the rate defined in
the slab rate. You can create slab rates based on MRP or item rates even before
recording the transactions.
You can also choose the applicability of
the slab rate based on MRP in the item master. For example, the tax rate of 5%
is applicable to an item if the price is less than Rs.500, and 12% when the
price is Rs.500 or above. If you have two different prices for the item—the MRP
and the rate manually entered in the invoice, you can choose to apply the slab
rate based on the MRP or the item rate. UCI-AC allows you to sell stock items
at a slab rate based on MRP, item rate, and price range.
1. Slab
rate based on MRP
2. Slab
rate based on Item rate
3. Slab
rate based on price range – same item of different price per unit
4. Tax
rate calculation for change in slab rate
5. Slab
rate with apportioned additional ledger value/calculation based on including
expenses
6. Slab
rate without apportioned additional ledger value/exclude apportion value
Slab rate based on MRP
The MRP is the highest price at which a
product is sold in the market. The MRP of a stock item is considered for GST
rate calculation when slab rates are applicable. However, the tax amount still
gets calculated on the selling price of the item. In the highlighted case, the
rate per unit is the MRP of Rs 550, which appears in the slab range of Rs. 500
and above. Therefore, GST gets calculated at 12%. The slab rate needs to be set
in the stock item master.
1. Set
up the slab rates based on MRP rates in the stock item.
a. In
the Stock Item Alteration screen, press F12
(Configure) > set Provide MRP Details
to Yes.
b. Set
the option Set/Alter MRP details to Yes.
i. Set
Allow MRP modification in voucher as Yes.
ii. Update
the MRP Rate per unit.
c. Set
the option GST applicability to Applicable.
d. Under
GST Rate & Related Details, select Specify Slab-Based Rates.
e. In
the Slab-Based Tax Rate Details
screen, update the slab rates.
Press
F12 (Configure) and enable Consider MRP while calculating slab-based tax rate.
f. As
always, press Ctrl + A to accept the
stock item.
2. While
recording the sales voucher, press F12
(Configure) > set Modify MRP in
vouchers to Yes.
3. Select
the stock item, and enter the MRP/Marginal
price and Quantity.
4. Select
the appropriate tax ledgers.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
6. .
Press Esc to return to the sales
invoice
7. Press
Ctrl + A to save the sales voucher.
Slab rate based on Item rate
Item rate is the price at which a
particular item is offered for sale. At the time of creating the stock item,
you can set up the slab rate based on the item rate and set up the tax rate
against the item rates. While recording the sales voucher the tax is calculated
as per the tax rate defined for the item rate.
1. Set
up the slab rates based on item rates in the stock item.
a. In
the Stock Item Alteration screen, press F12
(Configure) > set Provide MRP Details
to Yes.
b. Set
the option Set/Alter MRP details to Yes.
·
Set Allow MRP modification in voucher as Yes.
·
Update the MRP
Rate per unit.
c. Set
the option GST applicability to Applicable.
d. Under
GST Rate & Related Details, select Specify Slab-Based Rates.
In the Slab-Based Tax Rate Details screen,
update the slab rates.
e. Ensure
Consider MRP while calculating slab-based tax rate is set to No.
f. As
always, press Ctrl + A to accept the
stock item.
2. While
recording the sales voucher, press F12
(Configure) > set Modify MRP in
vouchers to Yes.
3. Select
the stock item, and enter the MRP/Marginal
price and Quantity.
4. Select
the appropriate tax ledgers.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
6. .
Press Esc to return to the sales
invoice.
7. Press
Ctrl + A to save the sales voucher.
Slab rate based on price range – same item
of different price per unit
You can set the slab rate based on the
price range. If you are selling the same stock item at a different price per
unit depending on the stock available, you can select the same stock item twice
in the invoice and enter the applicable rate per unit. The tax gets calculated
as per the slab rate set for the different price ranges.
1. Set
up the slab rates based on the price range of the stock item.
a. In
the Stock Item Alteration screen, press F12
(Configure) > set Provide MRP Details
to Yes.
b. Set
the option Set/Alter MRP details to Yes.
§ Set
Allow MRP modification in voucher as Yes.
§ Update
the MRP Rate per unit.
c. Set
the option GST applicability to Applicable.
d. Under
GST Rate & Related Details, select Specify Slab-Based Rates.
e. In
the Slab-Based Tax Rate Details screen,
update the slab rates.
f. As
always, press Ctrl + A to accept the
stock item.
2. While
recording the sales voucher, press F12
(Configure) > set Modify MRP in
vouchers to Yes.
3. Select
the same stock item twice and enter the Quantity.
Enter
different Rate per unit for both
stock items.
4. Select
the appropriate tax ledgers.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
6. .
Press Esc to return to the sales
invoice.
7. Press
Ctrl + A to save the sales voucher.
Tax rate calculation for change in slab
rate
If the slab rates of stock items change
due to any applicable discounts, you can override the tax rates at the
transaction level.
1. While
recording the sales voucher, press F12
(Configure) > set Modify GST &
HSN/SAC related details to Yes.
2. Select
the Party A/c name and the Sales ledger.
3. Select
the stock item, and enter quantity and rate.
4. In
the GST Rate and Related Details
screen, enter the tax rate applicable based on the slab rate of the stock item.
5. Select
the appropriate tax ledgers.
6. .
To view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
7. Press
Esc to return to the sales invoice.
8. .
Press Ctrl + A to save the sales
voucher.
Slab rate with apportioned additional
ledger value/Calculation based on including expenses
While recording the sale of goods, if
there is any additional ledger then the slab rate can be set by including the
additional ledger. Hence the GST gets calculated after considering the
additional ledger value.
1. Provide
slab rate in the stock item.
a. In
the Stock Item Alteration screen, under GST
Rate & Related Details, select Specify
Slab-Based Rates.
b. In
the Slab-Based Tax Rate Details
screen, update the slab rates.
Press F12
(Configure) and enable Include GST expenses/incomes to calculate the slabbased
tax rate.
c. As
always, press Ctrl + A to accept the
stock item.
2. While
recording the sales voucher with the additional ledger.
a. Select
the stock item, and enter the quantity and rate.
b. Select
the additional ledger enabled for apportionment based on quantity, and enter
the amount.
3. Select
the appropriate GST ledgers. The taxes are calculated on the slab rate arrived
at by considering the value of apportioned additional ledger to the stock item
rate.
4. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
5. Press
Esc to return to the sales invoice.
6. .
Press Ctrl + A to save the sales
voucher.
Slab rate without apportioned additional
ledger value/Exclude apportion value
While recording the sale of goods, if
there is any additional ledger and you don’t want to include that value while
the slab rate is set, you can still record the sales voucher. In such a case,
the GST gets calculated after excluding the additional ledger value.
1. Provide
slab rate in the stock item.
a. In
the Stock Item Alteration screen, under GST
Rate & Related Details, select Specify
Slab-Based Rates.
b. In
the Slab-Based Tax Rate Details
screen, update the slab rates.
Press
F12 (Configure) and disable Include GST expenses/incomes to calculate slabbased
tax rate.
If you
are on Rel 2.1 and earlier, you can see the option as Consider additional
expense/income ledger for slab rate calculation.
c. As
always, press Ctrl + A to accept the
stock item.
2. While
recording the sales voucher with the additional ledger.
a. Select
the stock item, and enter the quantity and rate.
b. Select
the additional ledger enabled for apportionment based on quantity, and enter
the amount.
3. Select
the appropriate GST ledgers. The taxes are calculated on the slab rate arrived
at by excluding the value of apportioned additional ledger.
4. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5
(Detailed) to view the detailed breakup of the tax.
5. Press
Esc to return to the sales invoice.
6. .
Press Ctrl + A to save the sales
voucher.
Mixed Supply, Composite Supply, and Sale of Fixed
Assets
As per your business requirements, you can
record sale of mixed supply and composite supply. You can also sell your fixed
assets and record the profit or loss from such a sale. In your business, if you
incur expenses like legal fees or rent which is taxable then you can create
expense ledgers with GST details. You can also move your goods from one godown
to another for supply and record such material movements.
Mixed supply refers to bundling items as a
kit. In such a case, the tax of the highest-rated item in the bundle is
applicable to the bundled unit. Composite supplies consider the rate of tax
applicable to the principal supply as the rate of tax for the composite supply.
UCI-AC gives you the option to record all these types of sales by making the
necessary changes to the ledgers. Such transactions can be local or interstate,
depending on the place of supply., you can record the movements of goods from
one godown to another by using Material Out Voucher.
When multiple products are sold together
as a kit or hamper, it creates a mixed supply. The tax on the highest-rated
item in the bundle is applied to the bundled unit in the case of mixed supply.
You can record such supplies and add descriptions for stock items mentioning
the products in that kit or hamper.
1. Create
a stock item for mixed supply.
a. In
the Stock Item Creation screen, press F12 (Configure) > set Provide
Descriptions for Stock Items and Set Components List (Bill of Materials) in
Stock Items to Yes.
Add the
item details under the Description.
b. Enable
Set components (BOM) and add items
that are part of the combo kit.
c. Enter
the HSN/SAC and GST Rate of the item which has the highest tax rate among thecombo.
If you
are on Rel 2.1 and earlier, enable Set/Alter GST Details and enter the
HSN/SAC and Tax Type of the item which has the highest tax rate among the
combo.
d. As
always, press Ctrl + A to save the
stock item creation screen.
2. Record
a stock journal voucher for transferring items to the new mixed item you have
created.
a. In
the Stock Journal voucher, press Ctrl + H (Change Mode) > select Use for Manufacturing Journal > and
press Enter.
In the
Name of product, select Diwali Combo.
b. Specify
Qty as 10. Automatically, related
items are moved under Name of Item
as shown below.
c. Press
Ctrl + A to save the stock journal.
3. Record
sale of mixed supply.
a. While
recording the Sales voucher, press F12
(configure) > set Provide Additional
Descriptions for Stock Items to Yes.
You can
now view the additional description entered in the stock item.
b. Select
the stock item created for mixed supply.
c. Select
the applicable tax ledgers, CGST and
SGST for local sales and IGST for interstate sales.
d. Press
Ctrl + A to save the sales voucher.
4. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
I (Preview) to preview the invoice
before printing or press P (Print)
to print the voucher.
Now that you have recorded a mixed supply,
you can see the transaction in the Outward
Supplies of GSTR-1.
In a composite supply of goods and services,
either one can be the principal supply. If you are unsure about the principal
and secondary supply, you can create separate invoices for the goods and
services. The rate of tax applicable on the principal supply is considered the
rate of tax for the composite supply.
1. Create
the service ledger under Indirect
Expenses.
a. In
the Ledger Creation screen, set Include in Assessable Value calculation for to
GST.
b. Select
Goods in Appropriate to field, as the principal supply is considered as
goods in this example.
There are 3 options in
Include in assessable value calculation for Appropriation.
§ Goods
§ Goods
and Services
§ Service
When
you select Services and Goods and Services Method of
calculation is set to Based on Value.
However,
for Goods, the user needs to choose
the Method of calculation from the below.
·
Based on
Quantity: Apportions the expense
value based on quantity of the stock item. More quantity means more share of
expense value.
·
Based on
Value: Apportions the expense value based on value of each stock
item/service ledger more value means more share of expense value.
c. Set
GST applicability as Not Applicable.
d. Press
Ctrl + A to accept the ledger
creation screen.
2. Record
sales of composite items.
a. In
the sales voucher, enter the Party A/c
name and Sales ledger.
b. Select
the stock items and enter the Quantity
and Rate.
c. Select
the service ledger (in this example, the ledger is applicable for
transportation charges).
d. Select
the applicable tax ledgers. CGST and
SGST for local sales and IGST for interstate sales.
3. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view
the detailed breakup of the tax.
4. Press
Esc to return to the sales invoice.
5. Press
Ctrl + A to save the sales voucher.
Now that you have recorded a composite
supply, you can see the transaction in the
Outward Supplies of GSTR-1.
When you purchase a fixed asset and its
useful life is over, you can either scrap the asset or sell the fixed asset
after recording depreciation on the asset. UCI-AC provides you with the option
to record the depreciation on your fixed assets and the sale of your fixed
assets. At the time of selling the fixed asset, you may get a profit or loss,
and the same can be recorded as well. If the sale price is higher than the
value of your asset, you have a profit, and if the sale price is lower than the
value of your asset, you have a loss.
1. Record
purchase of fixed assets.
2. Record
Depreciation and Sale of fixed assets.
a. In
the Journal voucher, debit the depreciation ledger grouped under expenses,
enter the value of depreciation and credit the fixed assets ledger.
b. As
always, press Ctrl + A to save the journal voucher.
c. Record
Sale of Fixed Assets in Accounting Invoice mode.
i. In
the sales voucher, enter the sales account for Furniture under Particulars. ii. Select the appropriate
GST ledgers based on the party’s Place
of Supply.
This sale value appears in your trading
account and Sales Register. As the
sale is of a fixed asset, you need to transfer this amount to the fixed asset
ledger to form part of the Balance Sheet.
1. View
details in GST report.
·
Press Alt
+ G (Go To) > type or select GSTR-1
> and press Enter.
Alternatively,
Gateway of Tally > Display More Reports > GST Reports > GSTR-1.
o If
the fixed asset is sold to:
o Registered
dealer, the details appear under B2B Invoices. Unregistered dealer, the details
appear under B2C Invoices.
2. Account
for profit or loss on sale of fixed assets.
1. Account
for profit on sale of fixed assets.
Transfer
the profit to the income ledger to reflect the balance sheet’s actual value of
fixed assets.
Example:
After charging depreciation on fixed assets, if the net value of the fixed
assets is 45,000 and the sale value is 55,000, record a Journal voucher to
transfer the profit as given below.
o Debit:
Sale of Fixed assets = 55,000
o Credit:
Fixed Assets = 45,000
o Credit:
Indirect Income = 10,000
2. Account
for loss on sale of fixed assets.
Transfer
the loss to the expense ledger to reflect the balance sheet’s actual value of
fixed assets.
Example:
After charging depreciation on fixed assets, if the net value of the fixed
assets is 45,000 and the sale value is 35,000, record a Journal voucher to
transfer the loss as given below.
o Debit:
Sale of Fixed assets = 35,000
o Debit:
Indirect Expenses = 10,000
o Credit:
Fixed Assets = 45,000
In your business, you may be incurring
indirect expenses like legal fees or rent that is taxable under GST. UCI-AC
enables you to record such expenses with a Journal voucher using a ledger
created under the Indirect Expenses account.
1. In
the Journal voucher, press F12
(Configure) > set Modify GST & HSN/SAC related details to
Yes.
2. Under
Particulars, credit the expense
ledger created under Indirect Expenses
and press Enter.
Set GST
Rate details to Specify Details Here and set the Nature of transaction to
Local-Sales Taxable.
If you
are unable to see Local-Sales Taxable under
the Natures of Transaction list.
3. Credit
the tax ledgers and Debit the party ledger.
4. As
always, you can press Ctrl + A to
save the journal voucher.
You can see the impact of this transaction
in GSTR-3B under Tax on Outward and Reverse Charge Inward Supplies.
Configure Expense ledger for GST Sales
If you frequently record transactions with
an Expense ledger for GST sales, then you can directly configure it with GST
Rate & Related Details at the ledger level at once. So, you don’t need to
provide such details during voucher creation. The details are acquired from the
values entered in the expense ledger.
1. Create
the expense ledger under Indirect
Expenses.
2. Enter
the HSN/SAC & Related Details as required.
3. Under
GST Rate & Related Details, set GST Rate details to Specify Details Here
and set the Nature of transaction to Local Sales – Taxable.
If you
are unable to see Local Sales – Taxable under the Natures of Transaction list.
4. Select
the Type of Supply as required.
5. As
always, press Ctrl + A to save the
ledger creation.
In your business, you deal with the
movement of your inventories from one place to another. In some cases, you must
be sending inventories to your customer or any other party. If you are an
Agent, then you can use this voucher to account for the sales return to the
Principal Owner.
1. Press
Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or
select Material Out and press Enter.
Alternatively,
Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or
select Material Out and press Enter.
You can
activate the Material Out voucher
type if the voucher is inactive. Select Yes
or press Y to proceed.
2. In
Party A/c name, select the party
ledger to whom you are sending the material.
3. In
Source Godown, select the godown to
where you are sending the material.
4. Enter
stock item details.
a. Name of Item – Select the stock item
you wish to send.
b. Specify
Quantity and Rate.
5. Select
the tax ledgers.
6. .
Enter the Narration, if required, as
always, you can press Ctrl + A to
save the Material Out voucher.
Calculation of GST Based on Slab Rate, Cess on
Quantity and Value
You can define the percentage of GST for a
particular price range with/without additional ledgers, or the cess amount per
unit, or cess on quantity and value, in the stock item master. These rates will
get applied while recording the purchase or sale of the stock items.
GST on Slab Rate by Considering the Value of Apportioned
Additional Ledger
Stock Item
1. Gateway
of Tally > Alter > type or select Stock Item > and press Enter.
Alternatively, press Alt + G (Go To) > Alter Master > Stock Item > and press Enter.
2. Specify
the required details in fields Name,
Under, and Units.
3. Set
the option GST Applicable to Applicable.
4. Enable
the option Set/Alter GST Details to
open GST Details screen.
5. Specify
the Description and HSN/SAC.
6. .
In the GST Details screen , press F12(Configure) > set Allow HSN/SAC details to Yes.
7. Select
On Item Rate as the Calculation Type. The Tax on Item Rate
screen appears.
8. .
If you want to consider the additional expenses or incomes as part of item
value, to arrive at the applicable slab rate, set the option Consider
additional expense/income ledger for slab rate calculation to Yes. Based on the slab rate in which
the calculated amount falls, the corresponding GST rate will appear in your
invoice.
9. Enter
the price range under Rate, and the percentage of Integrated Tax Rate
o Accept
the screen, and return to the GST
Details screen.
10. Accept
the screen. As always, you can press Ctrl
+ A to save.
Sales invoice
1. Gateway
of Tally > Vouchers > press F8 (Sales).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F8 (Sales).
2. Select
the stock item, and enter the quantity and rate per unit.
3. 3
Select the additional ledger enabled for apportionment, and enter the amount.
4. Select
the GST ledgers. The taxes are
calculated on the slab rate arrived at by considering the value of apportioned
additional ledger to stock item rate.
5. To
display the Tax Analysis screen
Press Ctrl + O (Related Reports)
> type or select GST – Tax Analysis>
and press Enter.
o Press
Alt + F5 (Detailed) in the Tax Analysis screen to view the tax
break-up for the stock item. The GST is calculated on item rate by considering
the additional ledger values.
6. .
Press Esc to return to the sales
invoice.
7. Accept
the screen. As always, you can press Ctrl
+ A to save.
GST on Slab Rate by Excluding the Value of Apportioned
Additional Ledger
Stock item
1. Gateway of Tally > Alter > type or select Stock Item > and press Enter.
Alternatively,
press Alt + G (Go To) > Alter Master > Stock Item > and press Enter.
2. Specify
the required details in fields Name,
Under, and Units.
3. Set
the option GST Applicable to Applicable.
4. Enable
the option Set/Alter GST Details to
open GST Details screen.
5. Specify
the Description and HSN/SAC.
6. Select
On Item Rate as the Calculation Type.
7. If
you want to consider the additional expenses or incomes as part of item value
to arrive at the applicable slab rate, retain the option Consider additional
expense/income ledger for slab rate calculation as No. Based on the item rate, the corresponding GST rate will appear
in your invoice.
8. .
Enter the price range under Rate, and the percentage of Integrated Tax Rate.
9. Accept
the GST Details screen. As always,
you can press Ctrl + A to save.
Sales invoice
1. Gateway
of Tally > Vouchers > press F8 (Sales).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F8 (Sales).
3. Select
the stock item, and enter the quantity and rate per unit.
4. Select
the additional ledger enabled for apportionment, and enter the amount.
5. 4
Select the GST ledgers. The taxes are calculated on the slab rate arrived at by
excluding the value of apportioned additional ledger.
To
display the Tax Analysis screen
Press Ctrl + O (Related Reports)
> type or select GST – Tax Analysis>
and press Enter.
6. Press
Ctrl + I (More Details) > type or
select GST – Tax Analysis > and
press Enter.
o Press
Alt + F5 (Detailed) in the Tax Analysis screen to view the tax break-up
for the stock item. The GST is calculated on item rate by considering the
additional ledger values.
7. Press
Esc to return to the sales invoice.
8. Accept
the screen. As always, you can press Ctrl
+ A to save.
Define GST Rate Based on Slab Rate or Price Range – Same
Item of Different Price per Unit
Stock item
1. In
the Stock Item Alteration screen, set the option GST Applicable to Applicable.
2. Enable
the option Set/Alter GST Details to
open GST Details screen.
3. Specify
the Description and HSN/SAC.
4. Select
On Item Rate as the Calculation Type. Enter the price range
under Rate, and the percentage of Integrated Tax Rate.
5. Accept
the GST Details screen. As always,
you can press Ctrl + A to save.
Sales invoice
1. Gateway
of Tally > Vouchers > press F8 (Sales).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F8 (Sales).
3. If
you are selling the same stock item at a different price per unit depending on
the stock available, you can select the same stock item twice in the invoice
and enter the applicable rate per unit.
4. Select
the GST ledgers. The taxes are calculated based on the price range defined in
the stock item master.
To
display the Tax Analysis screen
Press Ctrl + O (Related Reports)
> type or select GST – Tax Analysis>
and press Enter.
5. I
f you are on UCI-AC Release 1.1.3 or earlier, follow the step:
o Press
Alt + F5 (Detailed) in the Tax Analysis screen to view the tax
break-up for the stock item. The GST is calculated on item rate by considering
the additional ledger values.
6. Press
Esc to return to the sales invoice.
7. Accept the screen. As always, you can press Ctrl + A to save.
Tax rate calculation for change in rate
slab
If the rate slab of your stock items changes
due to any applicable discounts, you can override the tax rates at the
transaction level. To override tax rate defined for the stock items, in the
invoice
1. In
the Sales invoice, Press F12 (Configure), Set Modify Tax Rate details of GST to Yes.
2. On
selecting the stock item, in the Tax Classification Details screen, Press F12 (Configure), set Override tax rate to Yes. and press Enter.
3. Enter
the tax rate applicable based on the rate slab of the stock item.
In your business, along with the regular
sales at different GST rates, you can also supply goods and services at a nil
rate or even be exempt. You can supply goods or services to places located in
SEZ or Other Territories. The supply can go to the parties who are from an
embassy or UN Body. You may provide goods or services for export or as deemed
appropriate for export and the high seas.
When you provide goods or services with a
Nil rate, the goods are taxed at 0%. On the other hand, if you sell goods or
services as exempt, then such supplies are wholly exempt from tax under the GST
Act. When you supply goods or services to a party located in SEZ, those
supplies can be taxable, nilrated, or exempted and fall under the LUT/Bond.
In the case of supplies to Other
Territories, there can be three scenarios where both you and your customer are
in Other Territories, or you are located in State or Union Territory and your
customer is in Other Territories and vice versa. You can export your goods or
services outside of India, and you can also treat your supply as deemed export
if it does not leave India’s borders.
Supply the goods to the customer in the
case of High Sea Sales, and allow that customer to sell the same goods to
another party after the goods sail from the loading port.
All these supplies can be recorded using a
Sales Voucher. You need to make changes in the registration type of your party
ledger in accordance with the type of sales that you make. Once the party
ledger is correctly configured and the voucher has been recorded, the
transactions automatically appear in the applicable table of GSTR-1.
When you sell goods or services to a local
or interstate customer at a nil rate, you do not have to pay GST on such sales.
You can record Nil-rated sales by using a sales voucher. All you need to do is
configure the sales ledger with the Taxability Type set to Nil Rated, and the
transaction appears in the Nil Rated Invoices table in GSTR-1. A few of the
Nil-rated items are grains, salt, cereals, and more.
1. Configure
the taxability type in the sales ledger for Nil Rated.
a. In
the sales ledger, select Taxability
Type: Nil Rated.
b. Select
the Nature of Transaction as System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
2. Record
a sales invoice for an Exempt sales, by selecting the sales ledger you have
configured.
a. Select
the party ledger that is applicable for the Nil-Rated sale.
b. Select
the sales ledger configured for Nil Rated – for example Sales Nil Rated.
This ensures
that the sales invoice accounts for a sale that is Nil tax.
c. Select
the required stock items, including quantity and rate.
d. Provide
other necessary details, as needed, and press Ctrl + A to save the sales invoice.
The transaction values appear in GSTR-1 under Nil Rated Invoices – 8A, 8B, 8C, 8D.
Depending on the location of the party,
you can record a local or interstate nil-rated sales transaction.
While creating a ledger, you can select
the Nature of Transaction as System Inferred after selecting the Taxability
Type as Taxable, Nil-Rated, or Exempt under GST Rate & Related Details.
What is System Inferred?
It is a mechanism that automatically picks
up the nature of the transaction based on the available details in the system
like the Registration Type of the
party under Tax Registration Details,
the State address of the company,
and the party. As a user, you do not have to remember such specific details of
the party or cross-verify any such details while passing a transaction. All you
have to do is simply select, System
Inferred while selecting the Nature
of
Transaction, and based on the details entered in
the transaction, it starts appearing in the applicable section of GSTR-1.
Let us look at a few examples:
If both the company state and party state
are the same, and the party is selected as
Regular
under GST Registration type, the nature of the transaction inferred
by the system is Local Sales – Taxable.
Similarly, in the case of a Regular party,
if the company state and party state are different, the nature of the
transaction inferred by the system is Interstate
Sales – Taxable.
In the case of a Deemed Export GST Sale to
a party that is registered as Regular-Deemed
Exporter, the Nature of Transaction via
System Inferred is either Local Deemed Export – Taxable or Interstate Deemed Export – Taxable based
on the location of the party.
In the case of a GST Sale to SEZ where the
party type is registered as Regular-SEZ,
the Nature of Transaction via the System Inferred is Sales to SEZ -Taxable.
Similarly, if the location of a party is
outside of India, then UCI-AC automatically log the transaction under Exports – Taxable on selecting System Inferred.
Select Nature of Transaction manually
If you want to manually select the Natures
of Transaction as per your requirement, you can also do that by selecting the
required option from the list. This overrides System Inferred details displaying manually selected options.
Exempt yourself from paying GST on the
sale of goods or services to a local or interstate customer if they are wholly
exempt from tax under the GST Act. You can record exempted sales by using a
sales voucher. All you need to do is configure the sales ledger with the
Taxability Type set as Exempt and the transaction appears in the Nil Rated
Invoices table in GSTR-1 but under the column of Exempted. A few of the
exempted items are bread, fresh fruits, curd, and more.
1. Configure
the taxability type in the sales ledger for Exempt.
a. In
the sales ledger, select Taxability Type:
Exempt.
b. Nature
of Transaction: System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
2. Record
a sales invoice for an Exempt sales, by selecting the sales ledger you have
configured.
a. Select
the party ledger that is applicable for the exempt sale.
Select
the sales ledger configured for Exempt – for example, Sales Exempted.
b. This
ensures that the sales invoice accounts for a sale that is exempted from tax.
c. Select
the required stock items, including quantity and rate.
d. Provide
other necessary details, as needed, and press Ctrl + A to save the sales invoice.
The transaction values appear in GSTR-1 under Nil Rated Invoices – 8A, 8B, 8C, 8D under Exempted column.
When you sell goods or services to an SEZ,
taxes are applicable depending on the Taxability Type. You can record SEZ sales
by using a sales voucher. You need to configure the sales ledger with the
Taxability Type set as Regular-SEZ. The different types of sales that determine
the tax applicability are Taxable SEZ sales, Exempt and nil-rated SEZ sales,
and SEZ sales under a LUT/bond. In the case of Taxable SEZ sales, IGST is
applicable for both local and interstate parties, no tax is applicable for
Exempt and nil-rate SEZ sales or SEZ sales under a LUT/bond. SEZ sales under
LUT/bond are allowed when you have signed a letter of undertaking with the
department for the sale of goods without the payment of duty.
In this section
1. Taxable
SEZ sale
2. Exempt
and nil-rated SEZ sale
3. SEZ
sale under LUT/bond
Taxable SEZ sale
When you sell goods or services to a party
located in SEZ, such sales can be taxable depending on the Taxability Type you
have selected. If you select Taxable as the Taxability Type, then depending on
the place of supply and the tax rate determined for that good or service the
tax is calculated. In case it is a local sale, select CGST and SGST as tax
ledger else select IGST..
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Regular – SEZ as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Taxable.
b. Nature
of Transaction: System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice for an SEZ sales, by selecting the party and sales ledger you
have configured.
a. Select
the party ledger that is applicable for the SEZ sale.
b. Select
the sales ledger configured for SEZ Taxable – for example, Sales to SEZ – Taxable.
c. Select
the required stock items, including quantity and rate.
d. Set
Provide GST/e-Way Bill details to Yes, and enter the Shipping Bill No. and
Date.
e. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
The printed invoice displays the title
specific to SEZ sales as shown below.
Exempt and nil-rated SEZ sale
When you sell goods or services to a party
located in an SEZ, no tax is charged if you select Exempt or Nil Rated in the
Taxability Type.
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Regular – SEZ as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Nil Rated or Exempt.
b. Nature
of Transaction: System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice for an SEZ sales, by selecting the party and sales ledger you
have configured.
a. Select
the party ledger that is applicable for the SEZ sale.
b. Select
the sales ledger configured for SEZ Exempted or Nil Rated
c. Select
the required stock items, including quantity and rate.
d. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
SEZ sale under LUT/bond
When you sell goods or services to a party
located in an SEZ, no tax is charged if you select Exempt in the Taxability
Type and Nature of Transaction as Sales to SEZ – LUT/Bond. SEZ sales under
LUT/bond are allowed when you have signed a letter of undertaking with the
department for the sale of goods without the payment of duty.
1. Enable
LUT/Bond.
a. Press
F11 (Features) and set Enable Goods and Services Tax (GST) as Yes.
b. In
the GST Details screen, enable the option Provide LUT/Bond details
c. In
the LUT/Bond Details screen, enter
the details.
2. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Regular – SEZ as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
3. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Exempt.
b. Nature
of Transaction: Sales to SEZ – LUT/Bond.
c. As
always, press Ctrl + A to save the
sales ledger.
4. Record
a sales invoice for an SEZ sales, by selecting the party and sales ledger you
have configured.
a. Select
the party ledger that is applicable for the SEZ sale.
b. Select
the sales ledger configured for SEZ sale under LUT/Bond.
c. Select
the required stock items, including quantity and rate.
d. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
Interstate Supplies to Embassy or UN Body
You can sell goods and services to an
Embassy or UN Body and record the transactions by configuring the sales ledger
with the nature of the transaction. Depending on the Taxability type chosen for
the transaction’s nature, the sale may be taxed, exempt, or nil rate. You don’t
need to make any changes to the customer ledger in order to record the
transaction; only the sales ledger needs to be configured. However, you can
also select an embassy or a UN body as the party type in the customer ledger.
In
this section
1. Interstate
sale of taxable goods to Embassy/UN Body
2. Interstate
sale of exempt goods to Embassy/UN Body
Interstate sale of taxable goods to
Embassy/UN Body
You can record an interstate sale of
taxable goods to Embassy/UN Body, and the tax gets calculated as per the rate
defined by you.
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Embassy/UN Body as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Taxable.
b. Nature
of Transaction: System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice, by selecting the party and sales ledger you have configured.
a. Select
the party ledger that is applicable for the Embassy/UN Body sale.
b. Select
the sales ledger configured for Embassy/UN Body Taxable.
c. Select
the required stock items, including quantity and rate.
d. Select
the IGST ledger.
e. Set
Provide GST/e-Way Bill details to Yes, and set the option Supplies under
section 7 of IGST Act to Yes.
f. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1
under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
Interstate sale of exempt goods to
Embassy/UN Body
You can record an interstate sale of
exempt goods to Embassy/UN Body, as the goods are exempted you don’t have to
pay any tax.
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Embassy/UN Body as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Exempt.
b. Nature
of Transaction: System Inferred.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice, by selecting the party and sales ledger you have configured.
a. Select
the party ledger that is applicable for the Embassy/UN Body sale.
b. Select
the sales ledger configured for Embassy/UN Body Exempt.
c. Select
the required stock items, including quantity and rate.
d. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
, you can record the supply of goods and
services to other territories. You need to enable the option Assessee of Other
Territory in the party ledger. If your company is located in other territory,
then enable the option Assessee of Other Territory in the Company GST Details
screen.
To comply with Section 15 of the IGST Act
for Refund of Integrated Tax to International Tourists, select the Place of
Supply as Other Territory in the Party Details screen of the sales invoice
recorded for foreign tourists and levy integrated tax. Taxes applicable in
various scenarios of Other Territory transactions while recording a sales
voucher with GST are shown below.
·
Other territory to other territory: When your company and your buyer
company are both located in the Other Territory then Central and UT taxes are
applicable.
·
Other territory to a state or union territory:
When your company is located in other territory and your buyer company is
located in a state or union territory, then IGST is applicable.
·
State or Union territory to other territory:
When your company is located in a state or union territory and your buyer
company is located in other territory, then IGST is applicable.
In
this section
1. Other
territory to other territory
2. Other
territory to a state or union territory
3. State
or union territory to other territory
Other territory to other territory
When your company and your buyer company
both are located in Other Territory, Central and UT taxes are applicable.
1. Enable
the option Assessee of Other Territory
for your company and the party ledger.
·
Ensure that the option Assessee of Other Territory is set to Yes in the Company GST
Details screen.
Press F11
(Features) and set Enable Goods and Services Tax (GST) to Yes. On the GST
Details screen, set Assessee of Other Territory to Yes.
On the
Ledger Creation screen for party, press F12
(Configuration) > Show more
configurations to Yes. Then set
the option Assessee of Other Territory to Yes and press Ctrl + A to save.
On the Ledger Creation screen, you can see the option Assessee of Other Territory, set it to Yes and press Ctrl + A to save.
2. Open
the sales voucher.
Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
3. In
the Party A/c name, select the party
ledger in which Assessee of Other
Territory is set to Yes.
4. Select
the Sales ledger.
5. Enter
the stock item details.
Name
of Item – Select the stock item.
Specify Quantity and Rate.
6. Select the CGST and UT tax ledgers.
7. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
Other territory to a state or union
territory
When your business is situated in other
territory and the customer is situated in a state or a union territory, IGST is
applicable.
1. Enable
the option Assessee of Other Territory
for your company.
o Ensure
that the option Assessee of Other
Territory is set to Yes in the Company GST Details screen.
o Press
F11 (Features) and set Enable Goods and Services Tax (GST) to Yes. On the GST Details screen, set Assessee
of Other Territory to Yes.
2. Open
the sales voucher.
Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
3. In
the Party A/c name, select the party
ledger in which the option Assessee of
Other Territory is set to No.
4. Select
the Sales ledger.
If you are an assessee of other territory
and your buyer is of the same state but not of other territory, select a common
sales ledger. Ensure that the tax rates (central, integrated, and UT tax) are
defined in the stock items. The taxes gets calculated accordingly.
5. Enter
the stock item details.
a. Name of Item – Select the stock item.
b. Specify
Quantity and Rate.
6. .
Select the IGST ledger.
7. As
always, press Ctrl + A to save the
sales voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
State or union territory to other
territory
When your company is located in a state or
union territory and your customer is located in other territory, then IGST is
applicable.
1. Enable
the option Assessee of Other Territory
for your party ledger.
a. Ensure
that the option Assessee of Other
Territory is set to No in the Company GST Details screen.
b. On
the Ledger Creation screen for the party, press F12 (Configuration) > Show
more configurations to Yes. Then
set the option Assessee of Other
Territory to Yes and press Ctrl + A to save.
On the Ledger Creation screen, you can see the option Assessee of Other Territory, set Yes and press Ctrl + A to save.
2. Open
the sales voucher.
Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
3. In
the Party A/c name, select the party
ledger in which Assessee of Other
Territory is set to Yes.
4. Select
the Sales ledger.
5. Enter
the stock item details.
a. Name of Item – Select the stock item.
b. Specify
Quantity and Rate.
6. Select the IGST ledger.
7. As
always, press Ctrl + A to save the sales
voucher.
The transaction values appear in GSTR-1 under B2B Invoices – 4A, 4B, 4C, 6B, 6C.
If your company exports goods outside
India, you can record those transactions using a sales voucher. Taxes on such
supply is applicable based on the type of export. Below are the list of export
type and their respective nature of transaction.
|
Type of Export |
Nature of Transaction |
|
Taxable export |
Exports Taxable |
|
Exempt export |
Exports Exempt |
|
Export under LUT/Bond |
Exports LUT/Bond |
For Taxable export, IGST is applicable and
for Exempt export and Export under LUT/bond, no tax is applicable.
In this section
1. Record
sales invoices for exports
2. Record
sales to SEZ
3. Sales
with LUT/Bond
4. IGST
in case of Freight on Board or Free on Board (FOB)
Record Sales invoices for exports
While recording sales invoices for
exports, for both taxable and exempt, you need to select Exports – Taxable and Exports
– Exempt as the Nature of Transaction. Taxable exports attract
IGST, whereas Exempt exports have no tax applicability.
1. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Exempt or Taxable, as needed.
b. Nature
of Transaction: Exports – Taxable or Exports – Exempt depending on the
Taxability Type selected.
c. As
always, press Ctrl + A to save the
sales ledger.
2. Record
a sales invoice for Export, by selecting the sales ledger you have configured.
a. Select
the party ledger that is applicable for the Export.
b. Select
the sales ledger configured for Export.
c. Select
the required stock items, including quantity and rate.
d. Select
the IGST ledger if it is a taxable
export.
e. Set
the option Provide GST details to Yes, if you want to enter the
additional details regarding the export transaction.
f. As
always, press Ctrl + A to save the
sales voucher.
3. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
b. Alternatively,
press Alt + P (Print) > Current.
c. Press
I (Preview) to check the invoice
before printing, if needed or Press P
(Print) to print.
d. The
printed invoice appears as shown below.
The transaction value appears in Exports Invoices – 6A in GSTR-1.
Record Sales to SEZ
, you can record sales invoices for export
with IGST chargeable but uncollected from the customer. You can create a sales
invoice with IGST charged but share the invoice with the customer without the
IGST being shown. All you have to do is disable the printing configuration
which allows to show tax amount for the export invoice. For the IGST charged in
the party ledger, you can pass an adjustment entry by recording a Journal
voucher with the party ledger being credited and the IGST refundable ledger being
debited. Once you receive the IGST refund from the department, you can pass a
receipt entry to nullify the IGST refundable ledger.
1. Record
a sales invoice for Export, by selecting the sales ledger you have configured.
a. Select
the party ledger that is applicable for the Export.
b. Select
the sales ledger configured for Export.
c. Select
the required stock items, including quantity and rate.
d. Select
the IGST ledger for taxable export.
e. Set
the option Provide GST details to Yes, if you want to enter the
additional details regarding the export transaction.
f. As
always, press Ctrl + A to save the
sales voucher.
2. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
C (Configure) and set the option Show Tax Amount for Export Invoice to No.
c. Disabling
this option will print the invoice without the tax amount.
d. Press
Ctrl + A to save.
e. Press
I (Preview) to check the invoice
before printing.
f. The
printed invoice appears as shown below. As you can see the IGST amount is not
visible in the preview document.
You can print the invoice and share it
with the customer without the IGST being reflected.
Even though the IGST is not reflected, it
is being charged to the customer with the passing of the sales invoice.
However, it will be nullified with
statutory payment of IGST to the department.
To adjust the customer ledger which is charged with IGST amount, you will
have to pass an adjustment entry using a Journal voucher.
1. Press
Alt + G (Go to) > Create Voucher > press F7 (Journal).
Alternatively,
Gateway of Tally > Vouchers > press F7 (Journal).
2. Press
F2 (Date) to change the transaction
date, if needed.
3. In
Dr, select the IGST refundable
ledger, and specify the Debit
amount.
As in other
transactions, you can create the ledger on the fly by pressing Alt + C.
By
default, in a journal voucher, you need to first specify the Dr (debit side).
4. In
Cr, select the party ledger and
specify the Credit amount.
5. If
you are unable to see the Cash
ledger, click on Show More under List of
Ledger Accounts.
6. Provide
Narration, if any, and accept the
voucher creation screen. As always, press Ctrl
+ A to save.
Once you have received the refund amount
from the department, you can pass a receipt entry in your bank account by
debiting the IGST refundable ledger. If you want to pass the entry in double
entry mode, press Ctrl + H (Change
Mode) and debit the IGST refundable ledger, and credit the bank ledger.
Sales with LUT/Bond
While recording sales with LUT/bond, you
need to select Export under LUT/Bond as the Nature of Transaction. LUT/Bond
exports are exempt from taxation. It is applicable when you have signed up a
letter of undertaking with the department for the export of goods without
paying duty.
1. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Exempt.
b. Nature
of Transaction: Exports LUT/Bond.
c. As
always, press Ctrl + A to save the
sales ledger.
2. Record
a sales invoice for Export, by selecting the sales ledger you have configured.
a. Select
the party ledger that is applicable for the Export.
b. Select
the sales ledger configured for Export.
c. Select
the required stock items, including quantity and rate.
d. Ignore
the tax ledger as it is exported with LUT/Bond.
e. As
always, press Ctrl + A to save the
sales voucher.
3. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
I (Preview) to check the invoice
before printing, if needed or Press P
(Print) to print.
c. The
printed invoice appears as shown below.
The transaction value appears in Exports Invoices – 6A in GSTR-1.
IGST in case of Freight on Board or Free
on Board (FOB)
In order to move the goods to the nearest
port, you need to pay FOB charges. Hence, while recording such transactions,
deduct FOB charges from the item value to calculate IGST.
1. While
recording the sales voucher, press F12
(Configure) > set Modify GST &
HSN/SAC related details to Yes.
If you
are on Rel 2.1 and earlier, you can see the option to Modify Tax Rate details of GST.
2. In
Party A/c name, select the buyer
details.
3. Enter
the stock item details.
a. Name of Item – Select the stock item.
b. Specify
Quantity and Rate.
4. In
the GST Rate and Related Details
screen, press F12 (Configure) and
set the option Override Taxable Value
to Yes.
If you
are on Rel 2.1 and earlier, you can see the option as Allow override assessable value.
5. Update
the Taxable Value after deducting
the freight charges and press Ctrl + A.
6. .
Select the freight charges ledger and enter the amount (deducted from the item
value).
7. Select
the IGST ledger.
8. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax
Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
In the
freight charges ledger, if the option
GST Applicability is set to No,
and Include in Assessable value
calculation is set to Not Applicable,
the GST – Tax Analysis appears as
shown:
In the
freight charges ledger, if the option Include in Assessable value calculation
is set to GST with Method of Calculation set to Based on Value, the GST – Tax
Analysis appears as shown:
9. Press
Esc to return to the sales invoice.
10. As
always, press Ctrl + A to save the
sales voucher.
The transaction value appears in Exports Invoices – 6A in GSTR-1.
Deemed export refers to those supplies of goods
that do not cross the national border. It is a supply of goods to
end-exporters. However, the supply and manufacture of goods take place within
India. Taxes on such supplies are applicable based on the Nature of
Transaction. In the case of Interstate taxable deemed export and Intrastate
taxable deemed export, IGST and CGST/SGST are applicable, respectively. While
recording, you need to update the Nature of Transaction as Deemed Exports
Taxable for both interstate and intrastate sales. No tax is applicable to
Exempt and nil-rated deemed exports.
In
this section
1. Taxable
Intrastate-Deemed Exports
2. Taxable
Interstate-Deemed Exports
Taxable Intrastate Deemed Exports
Change the nature of the transaction to Deemed
Exports Taxable while recording an intrastate taxable deemed export. If the
place of supply is the same as your company’s state, then CGST and SGST are
applicable.
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Regular-Deemed Exporter as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Taxable.
b. Nature
of Transaction: Local Deemed Exports – Taxable.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice for Deemed Export, by selecting the party and sales ledger you
have configured.
a. Select
the party ledger configured for Deemed Export.
b. Select
the sales ledger configured for Deemed Export Taxable.
c. Select
the required stock items, including quantity and rate.
d. On
the GST Rate and Related Details screen, set Applicable for Reverse Charge to
Yes. e. Select CGST and SGST tax ledgers.
e. Set
Provide GST/e-Way Bill details to Yes, and enter the Shipping Bill No. and
Date.
f. As
always, press Ctrl + A to save the
sales voucher.
The transaction value appear under B2B Invoices – 4A, 4B, 4C, 6B, 6C in GSTR-1.
Taxable Interstate Deemed Export
Change the nature of the transaction to
Deemed Exports Taxable while recording an intrastate taxable deemed export. If
the place of supply is different from your company’s state, then IGST is
applicable.
1. Configure
the party ledger.
a. In
the Ledger Creation screen for the party, select Regular-Deemed Exporter as the Registration
type under Tax Registration Details.
b. Update
the GSTIN/UIN.
c. Provide
other necessary details, as needed, and press Ctrl + A to save.
2. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Taxable.
b. Nature
of Transaction: Interstate Deemed Exports – Taxable.
c. As
always, press Ctrl + A to save the
sales ledger.
3. Record
a sales invoice for Deemed Export, by selecting the party and sales ledger you
have configured.
a. Select
the party ledger configured for Deemed Export.
b. Select
the sales ledger configured for Deemed Export Taxable.
c. Select
the required stock items, including quantity and rate.
d. On
the GST Rate and Related Details screen, set Applicable for Reverse Charge to
Yes. e. Select IGST tax ledger.
e. Set
Provide GST/e-Way Bill details to Yes, and enter the Shipping Bill No. and
Date.
f. As
always, press Ctrl + A to save the
sales voucher.
The transaction value appear under B2B Invoices – 4A, 4B, 4C, 6B, 6C in GSTR-1.
High Sea Supply is when you have sold the
goods to your customer and your customer sells them to another buyer while the
goods are on the high seas. The goods at that time have left from the port of
loading but have not arrived at the port of discharge. You can record those
transactions as well. You need to update the taxability type to exempt in the
sales ledger and select High Sea Supply in the Nature of Transaction.
1. Configure
the taxability type in the sales ledger.
a. In
the sales ledger, select Taxability Type:
Exempt.
b. Nature
of Transaction: High Sea Sales.
c. As
always, press Ctrl + A to save the
sales ledger.
2. Record
a sales invoice for a High Sea Supply, by selecting the sales ledger you have
configured.
a. Select
the party ledger that is applicable for the High Sea Supply.
b. Select
the sales ledger configured for High Sea Supply.
c. Select
the required stock items, including quantity and rate.
d. Press
Ctrl + A to save the sales voucher.
In your business, apart from regular
sales, you can supply goods or services through an ecommerce operator, supply
of Works Contract Services, record sales invoices for Solar and Renewable
Energy projects, and provide courier services outside India.
You might be selling goods through an
online portal or e-commerce operator such as Amazon, Flipkart and others. In
such cases, you are supplying the goods to such e-commerce operators although
your buyer is an end user. Once you have supplied the goods to the e-commerce
operator, they will deliver the same goods to the end user. You can record the
supply of goods to such ecommerce operators using the sales voucher.
Works Contract Service refers to the
construction, repair, or maintenance of a building or other structure. The
client typically pays for the services on a contract basis, and the company is
responsible for completing the work according to the terms of the contract. You
can record the supply of such services using the sales voucher.
Solar and renewable energy projects
involve the development, construction, and operation of facilities that
generate electricity from renewable sources such as the sun, wind, or water.
These projects are designed to provide a clean and sustainable alternative to
traditional fossil fuel-based energy sources. If you are in the business of
solar and renewable energy projects, you can record the sales invoice for that
too.
Courier services are companies that
transport and deliver packages, documents, and other items from one location to
another. Some courier services offer delivery to locations outside of India,
either directly or through partnerships. If you are providing courier services
then you can also record such transactions.
UCI-AC makes it simple to record all such
sales invoices, and the transactions reflect in the relevant GSTR-3B and GSTR-1
tables.
Supplies Through e-Commerce Operator
If you are selling products through an
online portal or e-commerce operators, like Amazon, Flipkart,
Snapdeal, or others, then you can record
the sales transactions through the e-commerce operator. In sales through an
e-commerce operator, there can also be a situation when the ecommerce operator,
end-user, and your business are based in different states. However, the sales
invoice recorded through the e-commerce operator will be in the B2B Invoices –
4A, 4B, 4C, 6B, 6C, and B2C section of the GSTR-1, based on the GST
registration of the end-user. These transactions also appear under Outward
supplies and inward supplies liable to reverse charge in GSTR-3B.
In this section
1. Set
up ledger for e-commerce operator
2. B2B
sales transactions through e-commerce operator
3. B2C
sales through e-commerce operator
Set up ledger for e-commerce operator
To record a sales invoice for sales
through an e-commerce operator, you need to create a ledger for the e-commerce
operator, either beforehand or on the fly while recording the invoice. While
creating the ledger for the e-Commerce operator, ensure that the Registration Type is selected as the e-Commerce Operator.
B2B sales transactions through e-commerce
operator
You can sell the goods to the registered
customer, and the location of the seller and the place of final delivery of the
goods can be either the same or different. Depending on the place of supply,
you need to select the tax ledgers.
1. Open
the sales voucher.
Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
2. Under
Party A/c name, select the party
ledger for which the Registration type
is set as eCommerce Operator.
3. Specify
the buyer details.
a. Under
Buyer (Bill To), select the party
ledger to whom you are doing the sale.
b. Enter
other required details and press Ctrl +
A to save.
c. Enter
other required details and press Ctrl +
A to save.
4. Enter
the GST ledgers. CGST and SGST if it’s a local sale and IGST if it’s an interstate sale
depending on the Place of Supply.
5. Press
Ctrl + A to save the sales voucher.
In GSTR-1
of UCI-AC, the sales invoice appears in the B2B Invoices – 4A, 4B, 4C, 6B, 6C.
In a similar way, you can record B2B
transactions for interstate supplies in which the seller’s state and the place
of supply are different. The invoices appear in the B2B Invoices – 4A, 4B, 4C,
6B, 6C.
B2C sales through e-commerce operator
You can sell the goods to an unregistered
customer, and the location of the seller and the place of final delivery of the
goods can be either the same or different. Depending on the place of supply,
you need to select the tax ledgers.
1. Open
the sales voucher.
Press Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
2. Under
Party A/c name, select the party
ledger for which the Registration type
is set as eCommerce Operator.
3. Specify
the buyer details.
a. Under
Buyer (Bill To), select Cash or the
buyer as needed.
Ensure
that the GST Registration Type is set as Unregistered/Consumer.
b. Enter
other required details, and press Ctrl +
A to save.
4. Enter
the GST ledgers. CGST and SGST if it’s a local sale and IGST if it’s an interstate sale
depending on the Place of Supply.
5. Press
Ctrl + A to save the sales voucher.
In GSTR-1
of UCI-AC, the sales invoice appears in the B2C (Small )Invoices as the sale value is less than 2.5 lakh.
In a similar way, you can record B2C
transactions for intrastate supplies in which the seller’s state and the place
of supply are the same. The invoices appear in the B2C (Small )Invoices or B2C
(Large) Invoices depending on the sale value.
Record Supply of Works Contract Services
You can record material in/a receipt note
voucher if you have received the material. Thereafter, you can record a sales
invoice when you render the service. Under GST, you need to report only the
sales invoice for the works contract. Once you have recorded a supply, you can
see the transaction in GSTR-3B and GSTR-1.
1. Open
the sales voucher in the Accounting Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Accounting Invoice.
2. In
the Party A/c name, select the buyer
details.
3. Select
the service ledger and ensure the GST
applicability is set as Applicable for
that ledger.
4. Select
the GST ledgers. CGST and SGST if it’s a local sale and IGST if it’s an interstate sale
depending on the Place of Supply.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
6. Press
Alt + F5 (Detailed) to view the
detailed breakup of the tax.
7. Print
the invoice.
a. In
the sales voucher, press Ctrl + P.
Alternatively,
press Alt + P (Print) > Current.
b. Press
I (Preview) to preview the invoice
before printing or press P (Print)
to print the voucher.
Solar and Renewable Energy Projects
You can record sales invoices for solar
and renewable energy projects. In the invoice, enter 70% of the assessable
value as goods taxable at 12% GST and 30% of the assessable value as services
taxable at 18% GST. You can sell goods like solar inverters, solar panels,
solar water heaters, and so on. You can also provide services like
installation, AMC, and so on.
1. Enable
Allow zero-valued transactions in
the sales voucher type.
2. In
the sales voucher, press F12
(Configure) > set Modify GST &
HSN/SAC related details to Yes.
If you
are on Rel 2.1 and earlier, you can see the option as Modify Tax Rate details
of GST.
3. In
the Party A/c name, select the buyer’s
ledger.
4. Select
the stock item, and enter the Quantity
and Rate.
In the GST Rate and Related Details screen,
press F12 (Configure), and set the
option Override Taxable Value to Yes.
5. If
you are on Rel 2.1 and earlier, you can see the option as Allow override assessable value.
6. .
In the Taxable Value field, enter
70% of the item value as the Taxable Value. For example, if the project cost is
225,000 calculate it as 70% of the cost and enter 157,500 as the Taxable Value.
7. Select
the service ledger. Do not enter the
Amount as the tax needs to be calculated on the partial assessable value of the
stock item.
8. .
In the GST Rate and Related Details
screen, under Taxable Value enter 30% of the item value.
For
example, if the project cost is 225,000 calculate 30% of the cost and enter
67,500 as the Taxable Value.
Select
the GST ledgers. CGST and SGST if it’s a local sale and IGST if it’s an interstate sale
depending on the Place of Supply.
9. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view
the detailed breakup of the tax.
10. Press
Esc to return to the sales invoice.
11. Press
O to accept the invoice with altered
assessable values.
The printed invoice appears as shown
below.
Courier Services to Places Outside of India
If you are transporting goods to a place
outside India, then the place of supply for such goods is considered the place
of destination for such goods. This means that such supplies are treated as
interstate and are subject to IGST regardless of where the buyer and service
provider is located.
You can mark such transactions as supplies
under Section 7 of the IGST Act. When you don’t flag such invoices, they are
considered exceptions due to the altered nature of the transaction and are not
included in the returns. This enables UCI-AC to include the invoice in GST
returns under the relevant tables. As per Notification No. 01/2019, IGST is
applicable when such services are provided within or outside the state.
Open the sales voucher in the Accounting
Invoice mode.
a. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
Alternatively,
Gateway of Tally > Vouchers > press F8 (Sales).
b. Press
Ctrl + H (Change Mode) > select Accounting Invoice.
c. Press
F12 (Configure) > set Modify GST & HSN/SAC related details as Yes.
If you
are on Rel 2.1 and earlier, you can see the option as Modify Tax Rate details of GST.
If you
do not see this option, set Show more
configurations to Yes.
In the Party A/c name, select the buyer’s ledger.
Select the Sales ledger defined with the GST rate.
In the GST Rate and Related Details
screen.
a. Set Nature of Transaction to Interstate Sales Taxable. This is
required as this is an export service.
b. Press
F12 (Configure) > set Set Reverse Charge applicability as Yes.
As the reverse charge is applicable in
this case, IGST does not calculate it in the invoice.
Set the option Provide GST details to Yes.
. In the Statutory Details screen, set the
option Supplies under section 7 of IGST Act to Yes and press Enter.
7. As always, press Ctrl + A to save the sales voucher.
Purchase of Transport Expenses
You can send courier services to places
outside India and pay IGST for such supplies. Similarly, you can purchase
courier services from outside India and pay IGST. Such supplies fall under
Section 7 of the IGST Act.
Open the Purchase voucher in the
Accounting Invoice mode.
1. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).
2. Press
Ctrl + H (Change Mode) > select Accounting Invoice.
3. Press
F12 (Configure) > set Modify GST & HSN/SAC related details as Yes.
4. If
you are on Rel 2.1 and earlier, you can see the option as Modify Tax Rate details of GST.
5. If
you do not see this option, set Show
more configurations to Yes.
In the Party A/c name, select the supplier’s
ledger.
Select Purchase ledger defined with GST rate.
As this is an import service, change the Classification/Nature to Interstate Purchase Taxable in the GST Details screen.
1. Select
the IGST ledger.
2. Set
the option Provide GST details to Yes.
3. In
the Statutory Details screen, set the option Supplies under section 7 of IGST
Act to Yes.
4. Press
O to override the values.
If you press Y (Enter) instead of O,
the transaction appears as an exception in the GST report.
You can print invoice with HSN/SAC. It is
recommended that HSN code/SAC and tax rate are specified at the same level
(Ledger or Group or Stock item or Stock group or Company).
When recording a transaction, UCI-AC looks
for tax-related details in a predefined order.
Based on this order, the HSN/SAC will be displayed from the master in which the
tax rates are defined.
If you have stock items attracting:
A specific HSN/SAC and tax rate (say 12%)
under a stock group – provide the HSN/SAC and tax rates at the stock group
level.
Other stock items attracting different
HSN/SAC and tax rates – provide the HSN/SAC and tax rates at the stock item
level.
To check if HSN is provided in the stock item or ledger
1. Record
the transaction. Based on a predefined order,
the HSN will appear from the master in which the tax rates are defined.
2. To
display the Tax Analysis screen,
press Ctrl + O (Related Reports)
> type or select GST – Tax Analysis >
and press Enter.
To
display the Tax Analysis screen,
press Ctrl + I (More Details) >
type or select GST – Tax Analysis >
and press Enter.
3. Press
Alt + F5 (Detailed) to view in
detailed mode. The Tax Analysis
screen appears as shown below:
o If
HSN and tax rates are defined in the stock item, different HSNs appear for each
item, as shown below:
If HSN and tax rates are defined
in the sales or purchase
ledger, the same HSN appears for each item, as shown below:
4. Press
Ctrl + P to print the invoice.
5. Press
C (Configure) for print configurations screen, The print
configuration for the tax invoice is as shown below:
Show HSN/SAC details Set this option to Yes
6. .
Press Esc to return to print screen
and press P (Print) to print the tax
invoice.
The print configuration for the tax
invoice printed with HSN defined for the stock item appears as shown below:
If you have entered the HSN/SAC and tax
rates in all the masters, you can remove it from the Tax Rate History screen of
the GST Details screen of masters in which it is not required. To remove
the HSN/SAC from the ledger
1. Gateway of Tally > Alter > type or select Ledger > and press Enter.
Alternatively,
press Alt + G (Go To) > Alter Master > type or select Ledger > and press Enter.
2. Enable
the option Set/Alter GST Details toYes.
3. Press Alt + W (Details) in the GST Details screen, and delete the
HSN/SAC from the Tax Rate History
screen.
Override Assessable Value, HSN Code, Party Details,
Cess Valuation Method in Sales Invoice
UCI-AC allows you to specify all your
GST-specific details for goods or services for your company. However, at times,
you may have to override such details to accommodate specific sales
requirements. Even if you had specified details such as the assessable value,
the HSN details of your stock items, the party details or the Cess valuation
type, earlier in your stock item or company, you can override these details in
specific transactions, as needed.
Override Assessable Value in Sales Invoice
You may have set the tax rate details for all
items when you set up your company or even at the stock item level. However,
there may be a situation where you need to override the tax rate or taxable
value already specified. UCI-AC provides you with the option to override the
assessable value while creating the voucher. The tax is calculated on the
overridden taxable value.
While recording the sales voucher in the
Item Invoice mode,
1. Press
F12 (Configure) and set Modify GST & HSN/SAC related details to Yes.
2. Provide
the stock item details and press Enter in the Amount field.
The GST
Rate and Related Details screen appears.
3. In
the GST Rate and Related Details
screen, press F12 (Configure) and
set the option Override Taxable Value
as Yes.
4. Enter
the Taxable Value and press Ctrl + A.
GST is calculated
on the updated amount.
5. Select
the GST ledgers.
o Select
CGST and SGST for local sales.
o Select
IGST for interstate sales.
6. .
To view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis. Press Alt + F5 (Detailed) to view the detailed breakup of the tax.
The GST
assessable value appears as overridden by the user.
7. Press
Esc to return to the sales invoice.
The sales invoice appears as shown:
8. Press
O to override the values.
If you
press Y (Enter) instead of O, the transaction appears as an
exception in the GST report as shown below.
9. You
can press Enter to view the
transaction, select it by pressing Spacebar,
and press Alt + J (Accept as is) to
accept the voucher as is.
The transaction gets included in the
relevant section of the GST report.
At the time of setting up your company or
even at the stock item level, you may have set the
HSN/SAC details for all the items.
However, there may be a situation where you need to override the HSN/SAC
already specified. UCI-AC provides you with the option to override HSN/SAC
details while creating the voucher.
1. In
Company GST Details, set the option Enable GST Classifications to Yes.
2. Create
a new HSN Classification with the required HSN code.
a. Press
Alt + G (Go To) > Create Master > type or select GST Classification > and press Enter.
Alternatively,
go to Gateway of Tally > Create > type or select GST Classification > and press Enter.
b. Enter
the HSN code, and applicable GST details.
c. Press
Ctrl + A to save.
While recording the sales voucher in the
Item Invoice mode
1. Press
F12 (Configure) and set Modify GST & HSN/SAC related details – Yes.
If you
are on Rel 2.1 and earlier, you can see the option as Modify Tax Rate details of GST.
2. Select
the party ledger and stock item.
3. In
the GST Rate and Related Details screen, select Use GST Classification from the
List of Actions in the HSN/SAC details field.
Select
the HSN classification.
If you
are on Rel 2.1 and earlier, in the GST
Details screen, press F12 and
set the option Allow override
Classification/Nature to Yes.
4. Select
the GST ledgers.
a. Select
CGST and SGST for local sales.
b. Select
IGST for interstate sales.
5. To
view the Tax Analysis, press Ctrl + O
(Related Reports) > GST Tax Analysis.
Press Alt + F5 (Detailed) to view
the detailed breakup of the tax.
Press Esc to return to the sales invoice. The
sales invoice appears:
6. Press
O to override the values.
If you
press Y (Enter) instead of O, the transaction will appear as an
exception in the GST report.
7. You
can press Enter to view the
transaction, select it by pressing Spacebar,
and press Alt + J to accept it as
is.
The transaction gets included in the
relevant section of the GST report.
Update Party Details in Invoice
At the time of creating the masters, you may
not have complete details of the party, like the address, contact details, and
even their GSTIN. You can update the party details in the invoices even after
voucher creation by altering the voucher.
1. Open
the sales voucher in alteration mode.
2. Select
the party ledger.
a. Update
the Dispatch Details, as applicable, and accept.
b. Update
the Party Details screen with the missing information about the party.
Change the Valuation Type of Cess in Invoice
When creating the stock item, you need to
define the Cess Valuation Type and the Cess Rate. While recording the sales
voucher, the cess is calculated based on the details defined in the stock item.
However, UCI-AC provides you with the option to override the Cess Valuation
Type while recording the transaction.
While recording a sales voucher
in Item Invoice mode
1. Press
F12 (Configure) > set Modify GST & HSN/SAC related details to Yes.
If you
are on Rel 2.1 and earlier, you can see the option to Modify Tax Rate details of GST.
2. Provide
the stock item details and press enter in the Amount field.
The GST
Rate and Related Details screen appears.
3. In
the GST Rate and Related Details screen, select the Cess Valuation Type as
Based on Value and Quantity.
Enter the
cess rate and cess rate per unit.
4. Select
the GST and cess ledger.
5. As
always, press Ctrl + A to save the
sales voucher.
Journal Entry for GST Adjustment
You need to keep your books updated with
tax liability and Input Tax Credit (ITC). This ensures that you do not miss out
on statutory regulations under GST, including GST payment and availing of ITC.
However, in some instances, you need to record journal vouchers for GST
adjustments. Journal entry for GST adjustment helps you in adjustments such
increase or reversal of tax liability.
Based on the nature of GST Adjustments,
you can use the appropriate ledgers for debit and credit while creating journal
vouchers.
The following table lists all the
applicable scenarios for GST adjustments and the ledgers to be debited and
credited.
Moreover, you will know the credit and debit
ledger to be used in different scenarios of GST adjustments.
Decrease of Tax Liability
Adjustment Against Credit
Explained in Recording Journal Vouchers for Adjustments
Against Tax Credit under GST
Cancellation of Advance Payments under Reverse Charge
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current assets
ledger
Cancellation of Advance Receipts
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current assets
ledger.
Cancellation of Advance Receipts for Exports/SEZ sales
Debit – Integrated tax and cess
ledgers.
Credit – Expenses/current assets
ledger.
Purchase against Advance Payment.
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
Sales against Advance Receipts
Debit – Integrated tax and cess
ledgers.
Credit – Expenses/current assets
ledger.
Sales against Advance Receipts for Export/SEZ sales
Debit – Integrated tax and cess
ledgers.
Credit – Expenses/current assets
ledger.
Increase of Input Tax Credit
Import of Capital Goods
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Current assets ledger.
Import of Goods
Debit – Central and state tax or integrated
tax, and cess ledgers.
Credit – Current assets ledger.
Import of services
Debit – Integrated tax and cess
ledgers.
Credit – Current assets ledger.
ISD Transfer
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Party ledger.
Others
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses/current assets
ledger.
Purchase from SEZ
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses/current assets
ledger
Purchase from Unregistered dealer
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
Purchase under reverse charge
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
Re-claim of reversal ITC (on
account of buyer payment)
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
Re-claim of reversal ITC –Rule 42 (2)(b)
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
TCS Adjustment
Debit – Central and state tax or integrated
tax, and cess ledgers.
Credit – Current assets ledger.
TDS Adjustment
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Current assets ledger.
Transitional Credit
Explained in Recording a
Journal Voucher for Transitional Credit under GST
Transfer of ITC (applicable only for Ladakh)
Debit – SGST ledgers
Credit – UT Tax ledgers
Increase of Tax Liability
Advance Receipts for Export/SEZ sales
Debit – Expenses or current
assets ledger.
Credit – Integrated tax and cess
ledgers.
Advances Paid under Reverse Charge
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Import of Capital Goods
Debit – Current assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Import of Goods
Debit – Current assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Import of services
Debit – Current assets ledger.
Credit
– Integrated tax and cess ledgers.
Interest
Debit – Expenses or party ledger.
Credit
– Central and state tax or integrated tax, and cess ledgers.
Late Fees
Debit – Expenses or party ledger.
Credit
– Central and state tax or integrated tax, and cess ledgers
On Account of Advance Receipts
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Others
Debit – Expenses or party ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Penalty
Debit – Expenses or party ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Purchase from Unregistered dealer
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Purchase under reverse
charge
Debit – Expenses/current assets
ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Increase of Tax Liability & Input Tax Credit
Import of Services
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Central and state tax or
integrated tax, and cess ledgers
Purchase from Unregistered dealer
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Purchase under reverse charge
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Refund
Not Applicable
Debit – Bank ledger
Credit – Central and state tax or
integrated tax, and cess ledgers, or current assets ledger
Interest
Debit – Bank ledger
Credit – Central and state tax or
integrated tax, and cess ledgers, or current assets ledger
Late Fees
Debit – Bank ledger
Credit – Central and state tax or
integrated tax, and cess ledgers, or current assets ledger
Others
Debit
– Bank ledger
Credit
– Central and state tax or integrated tax, and cess ledgers, or current assets
ledger
Penalty
Debit – Bank ledger
Credit
– Central and state tax or integrated tax, and cess ledgers, or current assets
ledger
Reversal of Input Tax Credit
Not Applicable
Debit – Expenses or party ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Capital credit due to exempted supplies – Rule 43(1) (h)
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers
Exempt and non-business supplies – Rule 42(1)(m)
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Import of services
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers
Ineligible credit
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
ISD credit note – Rule 39(1)(j)(ii)
Debit – Expenses or current assets
ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Non-payment to the Supplier – Rule 37(2)
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers
On account of claiming more – Rule 42 (2)(a)
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Others
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Purchase from Unregistered dealer
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Purchase under reverse charge
Debit – Expenses or current
assets ledger.
Credit – Central and state tax or
integrated tax, and cess ledgers.
Reversal of Tax Liability
Import of Services
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger
Purchase from Unregistered dealer
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger
Purchase under reverse charge
Debit – Central and state tax or
integrated tax, and cess ledgers.
Credit – Expenses or current
assets ledger.
Record Vouchers for GST Adjustments
GSTR-1 and GSTR-3B are monthly returns
while GSTR-9 is the annual return. You pay GST on the basis of the tax amount
in the respective returns. If there are any adjustments for tax liability and
Input Tax Credit (ITC) so that the actual amount appears in the GST returns,
then you need to record journal vouchers for GST adjustments. Along with GSTR-1
and GSTR-3B, the changes after recording journal vouchers for GST adjustment
will also get updated in GSTR-9 Annual Computation report, which is the aggregation
of data in your books of account.
There can be some discrepancies due to
reversal of tax liability or for instance the Input Tax Credit (ITC) is:
Less than the value you need to claim
In
excess of the claimable value
In such cases, you can account for such
adjustments using journal vouchers so that the values of the claimable ITC and
that availed are same.
You can select from the gamut of options
that cover varied business scenarios.
To quote a few examples, you can account
for:
Increase
in Tax Liability and Input Tax Credit due to:
Import of Services
Purchase from Unregistered Dealer
Purchase Under Reverse Charge from
Registered Dealer
Penalty
Others
Decrease
in Tax Liability due to:
a. Cancellation
of Advance Receipts
b. Import
of Services
c. Purchase
from Unregistered Dealer
d. Purchase
Under Reverse Charge from Registered Dealer
Reversal
of Input Tax Credit due to:
Import of Services
Ineligible Credit
Purchase from Unregistered Dealer
Purchase Under Reverse Charge from
Registered Dealer
With the Additional Nature of Adjustments,
you can ensure that the vouchers appear in the appropriate sections in GSTR-1
and GSTR-3B.
Adjustments Against Input Tax Credit (ITC) under GST
You can use the ITC of integrated tax
(IGST), central tax (CGST), and state tax (SGST)/union territory tax (UTGST) to
set off the liability created for IGST, CGST, and SGST/UTGST, respectively.
The order in which tax credit can be set
off is given below:
·
Input Tax Credit- Set
off against the liability
·
CGST- CGST
(set off complete liability) and then IGST (in that order)
·
IGST- Integrated tax (set off complete liability)
·
Remaining credit, if any, to be utilised to pay CGST, or
SGST/UTGST, in any order and any proportion
·
SGST/UTGST- SGST/UTGST
(set off complete liability) and then IGST (in that order)
you can raise an RCM tax liability and
then set off your taxes with ITC using a journal voucher In this section:
Scenarios for adjustments against Input
Tax Credit
GST adjustment for increase of Input Tax
Credit
GST adjustment for reversal of ITC
Scenarios for adjustments against Input
Tax Credit
Paying
CGST, when only CGST credit is available
Debit the CGST ledger Enter the
amount of the available ITC.
Credit the CGST ledger to set off
the payable amount of the available ITC.
Paying CGST, when CGST and IGST credits are available
Debit the CSGT ledger. Enter the amount of the available ITC.
Credit
the CGST ledger, and enter the amount of the available ITC.
If complete CGST liability
is not set off, then credit the IGST leger, and enter the amount of the
available ITC. This is only when the IGST credit is not already utilised to pay
SGST/UTGST liability.
Paying SGST/UTGST, when only SGST credit is available
Debit the GST/UTGST ledger. Enter
the amount of the available ITC.
Credit the SGST/UTGST to set off
the payable amount of the available ITC.
Paying SGST/UTGST, when SGST/UTGST and IGST credits are
available
Debit the SGST/UTGST ledger.
Enter the amount of available ITC.
Credit the SGST/UTGST ledger, and
enter the amount of the available ITC.
If complete SGST/UTGST liability is not set off, then credit the IGST
ledger and enter the amount of the available ITC. This is only when the IGST credit
is not already utilised to pay CGST liability.
Paying IGST, when only IGST credit is available
Debit the IGST ledger. Enter the
amount of the available ITC.
Credit the IGST ledger to set off
the payable amount of the available ITC.
Paying IGST, when IGST, CSGT and SGST/UTGST credits are
available
Debit the IGST ledger. Enter the
amount of the available ITC.
Credit
the IGST ledger, and enter the amount of the available ITC.
If complete IGST
liability is not set off, then credit the CGST ledger and enter the amount of
the available ITC.
If complete IGSTT liability
is not set off even after utilising CGST credit, then credit the SGST/UTGST
ledger and enter the amount of the available ITC.
Paying cess liability, when only cess credit is available
Debit the cess ledger. Enter the
amount of the available ITC.
Credit the cess ledger to set off
the payable amount of the available ITC.
GST adjustment for increase in Input Tax
Credit
If you have availed ITC on purchases other
than that reported on the purchases in GSTR-3B, then you can record a journal
voucher to adjust for the increase in ITC.
1. In
a Journal Voucher, specify statutory adjustment details.
a. Press
Alt + J (Stat Adjustment).
Type of
duty/tax: GST.
b. Nature
of Adjustment: Increase in Input Tax Credit.
c. Additional
Nature of Adjustment: Reclaim of Reversal of ITC (On Account of Buyer Payment).
You can select the appropriate nature of
transaction depending on the adjustment scenario. Accordingly, you can select
the applicable debit and credit ledgers for the adjustment done, as mentioned
in the Nature of Adjustment for Increase in Input Tax Credit table.
2. Add
Debit and Credit ledgers and enter their amounts.
a. Under
By (Debit), select the tax ledgers,
as applicable, and enter the amount of ITC.
b. Under
To (Credit), select the purchase or
expense ledger, as applicable, and enter the amount of ITC.
Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample journal voucher recorded for the
increase in ITC appears as shown below:
Once you select
the ledger under To (Credit), the Inventory
Allocations screen
appears. You can select stock items and provide Quantity and Rate, if needed.
The voucher gets included in the return
for the period and appears in GSTR-3B as Other
Adjustments.
Nature of Adjustment for Increase in Input
Tax Credit
Import of Services
Debit – IGST or
SGST/UTGST and CGST, as applicable
Credit –
Imported purchases or expense ledger
ISD Invoice/Debit Note
Debit – IGST or
SGST/UTGST and CGST, as applicable
Credit – Branch
Office ledger
Others
Debit
– IGST or SGST/UTGST and CGST, as applicable
Credit –
Purchase or expenses ledger
Purchase from Unregistered Dealer
Debit – IGST or
SGST/UTGST and CGST, as applicable
Credit – Purchase
or expenses ledger
Reclaim of Reversal of ITC (On Account of
Buyer Payment)
Debit – IGST or
SGST/UTGST and CGST, as applicable
Credit –
Purchase or expenses ledger
Reclaim of Reversal of ITC – Rule 42(2)(b)
Debit – IGST or
SGST/UTGST and CGST, as applicable
Credit –
Purchase or expenses ledger
GST adjustment for
reversal of ITC
In case of decrease in ITC, you will need
to reverse the ITC.
Reversal of ITC can be done for trading
goods, capital goods, goods meant for self-consumption and services. You can
reverse the ITC using a journal voucher.
Follow the procedure for the increase in
Input Tax Credit with the following changes.
1. In
a Journal Voucher, specify statutory adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of Adjustment: Reversal of Input Tax Credit.
d. Additional
Nature of Adjustment: Capital Credit Due to Exempted Supplies – Rule 43(1) (h).
You can select the appropriate nature of
transaction depending on the adjustment scenario. Accordingly, you can select
the applicable debit and credit ledgers for the adjustment done, as mentioned
in the Nature of Adjustment for Reversal of Input Tax Credit table.
2. Add
Debit and Credit ledgers and enter their amounts.
a. Under
By (Debit), select the purchase,
expense, or current assets ledger, as applicable.
b. Under
To (Credit), select the tax ledgers,
as applicable and enter the amount of Input Tax Credit.
3. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample journal voucher recorded for the
reversal of ITC appears as shown below:
Natures of Adjustment for Reversal of
Input Tax Credit
Capital Credit Due to Exempted Supplies – Rule 43(1)(h)
Debit – Purchase, expenses or
current assets ledger
Credit
– Integrated tax and cess ledgers
Exempt
and Non-Business Supplies – Rule 42 (1)(m)
Debit – Purchase, expenses or
current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
Import
of Services
Debit – Current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
Ineligible
Credit
Debit – Current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
ISD
Credit Note Rule 39(1)(j)(ii)
Debit – Current assets ledger
Credit
– Integrated tax and cess ledgers
Non-Payment
to the Supplier – Rule 37(2)
Debit – Purchase, expenses or
current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
On
Account of Claiming More – Rule 42(2) (a)
Debit – Purchase, expenses, or
current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
Others
Debit – Purchase, expenses,
current assets ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
Purchase
from Unregistered Dealer
Debit – Expenses/current assets
ledger
Credit
– Central and state tax or integrated tax, and cess ledgers
Purchase Under Reverse Charge from Registered Dealer
Debit – Expenses/current assets
ledger
Credit – Central and state tax or
integrated tax, and cess ledgers
GST Adjustment for Ineligible Input Tax Credit
In some situations, stock items may be
eligible at the time of purchase. However, the stock items later becomes
ineligible, because of a new rule introduced by the department. In such cases,
you can record a journal voucher to reverse it.
You can record purchases of stock items on
which ITC cannot be claimed, by setting the option Eligible for Input Tax Credit to No in the respective group/ledger or stock group/item.
In this section:
1. Ineligibility
of tax credit during purchases
2. Reversal
of ITC due to Ineligibility
Setting up purchase ledger with ITC Ineligibility
There may be a scenario in which you
cannot claim ITC on the voucher, as the services availed will be ineligible for
ITC.
, you can ensure that the purchase ledger
you use in a purchase voucher is not eligible for ITC.
1. Press
Alt + G (Go To) > Alter Master > Ledger > type or select the purchase ledger and press Enter.
2. Eligible
for Input Tax Credit: No.
If you do not see this option, then press F12, set Eligible for Input Tax Credit to Yes and press Ctrl + A.
If you have
recorded some vouchers using the ledger or have set the configuration at least
once, then you will get a screen to set the Effective Date. The ledger becomes
ineligible for Input Tax Credit right from the date entered under Effective
Date.
3. As
always, press Ctrl + A to save the
ledger.
Henceforth, whenever you use this ledger
in a purchase voucher, the voucher will not be considered for ITC.
Reversal of ITC due to Ineligibility
There may be purchases on which you have
claimed ITC either accidentally or the purchases must be eligible for ITC at
the time of voucher creation. However, later, you need to reverse the tax
credit due to ITC ineligibility.
To configure purchase ineligible for ITC,
refer to Setting up purchase ledger with ITC Ineligibility.
The purchase voucher on which tax credit
is claimed appears as shown below:
In GSTR-3B, this voucher appears in
GSTR-3B under the Eligible for Input Tax
Credit section as All other Input
Tax Credit.
Later on, you realise the purchase is
ineligible for ITC. You can reverse the tax credit by recording a journal
voucher.
1. In
a Journal Voucher, specify statutory adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of Adjustment: Reversal of Input Tax Credit.
d. Additional
Nature of Adjustment: Ineligible Credit.
2. Add
Debit and Credit ledgers and enter their amounts.
a. Under
By (Debit), select the purchase or
expense ledger, as applicable and enter the amount of Input Tax Credit.
Once you select the ledger under By (Debit), the Inventory Allocations screen appears. You can
select stock items and provide Quantity and Rate, if needed.
b. Under
To (Credit), select the tax ledgers,
as applicable and enter the amount of Input Tax Credit.
3. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample journal voucher recorded for the
reversal of ITC due to ineligibility appears:
The voucher gets included in the return
for the period in the Ineligible for
Input Tax Credit section under As
per Section 17(5) of GSTR-3B.
GST Adjustment for Increase in Tax Liability
If you need to pay the tax more than that
recorded, then you will need to record a journal voucher for the increase in
tax liability.
For example, when you purchase goods and
services liable for a reverse charge, you need to create an RCM tax liability.
There can be two scenarios – increase in
tax liability and decrease in tax liability, and you will need to make GST
adjustments in both the cases.
, you will need to account for the
increase in tax liability in scenarios as shown in the Stat Adjustment Details screen while creating a journal voucher for
adjustment.
GST Adjustment for Decrease in Tax Liability
You may have raised tax liability.
However, there is a decrease in tax liability and you need to make adjustments
for it. You can record a journal voucher for the same.
Similar to the experience when you record
a journal voucher for the increase in tax liability, you get the options to
select for the decrease in tax liability in the Stat Adjustment Details screen.
Natures of Adjustment and section or topic
for reference
The order in which tax credit can be
offset is given below:
Central tax- Central tax (set-off
complete liability) and then integrated tax (in that order).
Integrated tax- Integrated tax
(set-off complete liability).
Remaining credit, if any, to be utilised to
pay central, or state tax/UT tax, in any order and any proportion.
State tax/UT tax- State tax/UT tax
(set-off complete liability) and then integrated tax (in that order).
Interest, Penalty, Late Fee, and Others in GST
You can record a journal voucher to raise
the liability towards interest, penalty, late fee, or other dues.
Interest:
Interest has to be paid in case of:
Delay in the payment of tax.
Input tax credit claimed more than the
applicable amount.
GST paid is lesser than what is required
to be paid.
Late
Fees: When there is a delay in filing GST returns, the departments charges
an amount as Late Fees.
Penalty:
In case of delay in filing GSTR, not filing GSTR, incorrect invoicing,
fraudulent activities, and other such scenarios, you need to pay penalty to the
department.
Others:
Amount to be paid for many reasons, such as:
Not registered under GST, despite the
requirement by the law
Absence or reduction of TDS deductions
Absence or reduction of TCS collection
Any other violation of the rules that will
lead to litigation
1. In
a Journal Voucher, specify statutory adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of Adjustment: Increase in Tax Liability.
d. Additional
Nature of Adjustment: Interest.
You can
select the appropriate nature of transaction depending on the adjustment
scenario. Accordingly, you can select the applicable debit and credit ledgers
for the adjustment done, as mentioned in the Natures of Adjustment for increase
in tax liability due to Interest, Penalty, Late Feel, and Others table.
2. Add
Debit and Credit ledgers and enter their amounts.
a. Under
By (Debit), select the purchase or
expense ledger, as applicable and enter the amount of tax.
Once you
select the ledger under By (Debit),
the Inventory Allocations screen appears. You can select stock items and
provide Quantity and Rate, if needed.
b. Under
To (Credit), select the tax ledgers,
as applicable and enter the amount of tax.
3. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample journal voucher recorded for the
increase in tax liability due to interest in
UCI-AC, is shown below:
The voucher gets included in the return
for the period in the 6.1 Interest, Late
Fee, Penalty and Others section of GSTR-3B.
Natures of Adjustment for increase in tax liability due to
Interest, Penalty, Late Fee and Others
The table documents the ledgers to be
debited and credit while recording the increase in tax liability because of
Interest, Penalty, Late Fee, and Other Dues.
Interest
Debit –
Purchase, expenses or party ledger
Credit – Central
and state tax or integrated tax, and cess ledgers
Penalty
Debit –
Purchase, expenses or party ledger
Credit – Central
and state tax or integrated tax, and cess ledgers
Late Fees
Debit –
Purchase, expenses or party ledger
Credit – Central
and state tax or integrated tax, and cess ledgers
Others
Debit –
Purchase, expenses or current assets ledger
Credit – Central
and state tax or integrated tax, and cess ledgers
Similarly, you can record the journal
voucher by selecting the Additional
Details in the Stat Adjustment
Details as:
Penalty,
for penalty payable.
Late
Fee, for late fee payable.
Others,
for other dues payable.
Your business may involve refund in many
scenarios that majorly include interest, late fees, penalty, or others. In such
cases, you can record a journal voucher for tax adjustments.
Natures of Adjustment and ledgers to be
debited and credit
Interest
Debit – Bank ledger
Credit – Central and state tax or
integrated tax, and cess ledgers, or current assets ledger
Late Fees
Debit – Bank ledger
Credit – Central and state tax or
integrated tax, and cess ledgers, or current assets ledger
Others
Debit
– Bank ledger
Credit
– Central and state tax or integrated tax, and cess ledgers, or current assets
ledger
Penalty
Debit – Bank ledger
Credit
– Central and state tax or integrated tax, and cess ledgers, or current assets
ledger
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.
1. Gateway
of Tally > Vouchers > press F7 (Journal).
Alternatively, press Alt + G (Go To) > Create Voucher > press F7 (Journal).
2. Press
Alt + J (Stat Adjustment) , select
the options as shown below:
Type of duty/tax – GST.
Nature of Adjustment – Refund.
Additional Details – Interest.
3. Press
Enter to save and return to the
Journal voucher.
4. Debit
the bank ledger, and enter the amount of interest liability.
5. Credit
the GST ledgers or ledger grouped under Current
Assets.
6. Accept
the screen. As always, you can press Ctrl
+ A to save.
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.
Adjustment for Opening Balance
You can record a journal voucher to transfer
the closing balance of tax credits of VAT, additional tax, cess, surcharge,
CENVAT, service tax, krishi kalyan cess, and special excise duty/additional
excise duty 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.
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.
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.
1. Gateway
of Tally > Vouchers > press F7 (Journal).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
3. Press
Alt + J (Stat Adjustment) , select
the options as shown below:
Type
of duty/tax – GST.
Nature
of Adjustment – Increase of Input Tax Credit.
Additional
Details – TCS Adjustment.
4. Press
Enter to save and return to the
Journal voucher.
5. Debit
the integrated tax/central tax/state tax/UT tax/cess ledger and enter the
amount that can be claimed as credit.
6. Credit
the ledger grouped under Current Assets.
7. .
Accept the screen. As always, you can press Ctrl + A to save.
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.
1. Gateway
of Tally > Vouchers > press F7 (Journal).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
3. Press
Alt + J (Stat Adjustment) , select
the options as shown below:
Type of duty/tax – GST.
Nature of Adjustment –
Increase of Input Tax Credit.
Additional Details – TDS Adjustment.
4. Press
Enter to save and return to the
Journal voucher.
5. Debit
the integrated tax/central tax/state tax/UT tax/cess ledger and enter the
amount that can be claimed as credit.
6. .
Credit the ledger grouped under Current
Assets.
7. Accept
the screen. As always, you can press Ctrl
+ A to save.
Account for ISD Credit Under GST
In your business, you may receive Input
Tax Credit (ITC) on common invoices for input services availed by all the
branches that have same PAN number but different GSTIN/UIN. For example, your
head office may be purchasing certain services availed by all the branches in
your business. Subsequently, the ITC will also be distributed among all the
branches. In this case, the head office becomes the Input Service Distributor
(ISD) that credits IGST or SGST/UTGST and CGST to other branches. The ISD
issues an ISD invoice for distribution of ITC, and you will need to account for
ISD credit.
Thereafter, you will need to record ITC
availed from the ISD.
1. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
2. Specify
statutory adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of Adjustment: Increase in Input Tax Credit.
d. Additional
Nature of Adjustment: ISD Invoice/Debit Note.
3. Under
By (Debit), select the tax ledgers,
as applicable, and enter the amount of ITC.
4. Under
To (Credit), select the purchase,
expense, or branch account ledger, as applicable, and enter the amount of ITC.
5. Provide
the details of ISD Invoice.
a. Provide
GST Details: Yes.
b. ISD Invoice/Debit Note No.: Enter the
invoice number or debit note number of the invoice or debit note provided by
the ISD.
c. ISD Invoice/Debit Note Date: Enter the
date on which ISD Invoice or Debit Note was provided by the ISD.
d. Registration
Type: Regular.
e. GSTIN/UIN: Enter the GSTIN or UIN of
the supplier.
f. Place of Supply: The place of supply
will be prefilled based on the transaction (sales, purchase, or others).
You can
change it, if needed.
Type of
Supply: Services.
The
others details will be prefilled based on the ledger or information entered in
the last journal voucher created for the party.
You can
change, if needed.
6. .
Provide other necessary details, as needed, and press Ctrl + A.
A sample journal voucher recorded for the
increase in ITC due to ISD credit appears as shown below:
The voucher will be included in return and
will appear as Other Adjustments in
GSTR-3B.
Account for Ineligible Input Tax Credit under GST
You can record purchases of stock items on
which tax credit cannot be claimed, by setting the option Set Ineligible Input Credit? to Yes in the group/ledger or stock
group/item. If tax credit cannot be claimed on any of the purchases, then you
can enable this option at the company level. If the tax credit is eligible
during purchases, but later becomes ineligible, you can record a journal
voucher to reverse it.
Ineligibility of Tax Credit During Purchases
If the tax credit on a particular
transaction cannot be claimed.
1. Gateway
of Tally >Alter > type or select Stock Item > and press Enter.
2. Alternatively,
press Alt + G (Go To) > Alter Master > type or select Stock Item > and press Enter.
Under Statutory Details, enable Set/Alter
GST Details to Yes.
3. PressF12 (Configure) in the GST Details screen.
In the GST Details screen, set Is
ineligible for input credit to Yes.
Record a purchase invoice on which tax
credit cannot be claimed as shown below:
1. Gateway
of Tally > Vouchers > press F9 (Purchases).
Alternatively, Alt + G (Go To) > Create
Voucher > press F9 (Purchases).
2. Select
the required invoice details, accept the screen. As always, you can press Ctrl + A to save.
The transaction appears in detailed mode,
in table 4D(1) of GSTR-3B as shown below:
Eligibility of Tax Credit During Purchases but Reversed
Later Due to Ineligibility
Record a purchase invoice for stock item
on which tax credit can be claimed:
In the above purchase, if one computer is
lost in transit, then the tax credit on that becomes ineligible, and needs to
be reversed. You can reverse the tax credit using journal voucher.
1
Gateway of Tally > Vouchers > press F7
(Journal).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
2
Press Alt
+ J (Stat Adjustment).
3
In the Stat
Adjustment Details screen, select the options as shown below:
4
Debit the expense ledger and credit the tax
ledgers.
5
Accept the screen. As always, you can press Ctrl + A to save.
6
The amount reversed as ineligible tax credit
appears in detailed mode, in table 4D(1) of GSTR3B as shown below:
Transfer Tax Credit of SGST to UTGST for Ladakh
As UT Tax is applicable for Ladakh from
1-Jan-2020, you can transfer the tax credit of SGST ledgers to UTGST ledger
using the new journal adjustment Transfer of ITC.
Transfer the SGST credit to Current Assets
1
Gateway of Tally > Vouchers > press F7
(Journal).
Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
2
Ensure the voucher date is on or before -Dec-.
3
Press Alt
+ J (Stat Adjustment), select the:
Type of
duty/tax – GST.
Nature of
Adjustment – Reversal of Input Tax Credit.
Additional
Details – Others.
4
Debit the Current assets ledger.
5
Credit the SGST ledger. If you are using:
As
always, press Alt + C, to create a
master on the fly. Alternatively, press Alt
+ G (Go To) > Create Master
> type or select Ledger >
press Enter.
A common
ledger for all tax rates of SGST, select it and enter the ledger balance in the
Amount column.
6
. Separate ledgers for each tax rate, select
each of the SGST ledgers and enter the corresponding ledger balances in the
Amount column.
In GST Details screen, you can leave the
Rate and Assessable Value fields blank.
7
Accept the screen. As always, you can press Ctrl + A to save.
As per GST law, this transaction needs to
be recorded on or before 31-Dec-2019. This transaction will appear in GSTR-3B under Participating in return
tables and table 4 Eligible ITC as (B) ITC Reversed under (2) Others.
Transfer the SGST Credit from Current Assets to UTGST
Ledger
1. Gateway
of Tally > Vouchers > press F7 (Journal).
2. Alternatively,
press Alt + G (Go To) > Create Voucher > press F7 (Journal).
3. Ensure
the voucher date is on or after Jan-.
4. Press
Alt + J (Stat Adjustment), select
the:
Type of duty/tax – GST.
Nature
of Adjustment – Increase of Input Tax Credit.
5. Debit
the UTGST/UT Tax ledger. If you are using:
A common
ledger for all rates of UTGST, select it and enter the ledger balance in the
Amount column.
Separate
ledgers for each tax rate, select each of the UTGST ledgers, and enter the
ledger balances of SGST ledgers that need to be transferred in the Amount
column.
In GST Details screen, you can leave the Rate and Assessable Value
fields blank.
6. Credit
the Current Assets ledger. The
amount appears automatically.
7. .
Set Provide GST details to Yes and select the Type of Input.
8. Based
on the Type of Input, the values will appear in the relevant tables of GST
Annual Computation.
9. .
Accept the screen. As always, you can press Ctrl + A to save.
The GST values will appear in the relevant
tables of GSTR-3B, GST CMP-08, and GST Annual Computation reports.
As per GST law, this transaction needs to
be recorded on or after 1-Jan-2020. This transaction will appear in GSTR-3B
under Participating in return tables and table 4 Eligible ITC as (A) ITC
Available (whether in full or part) under (5) All other ITC.
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, krishi kalyan cess, and special excise
duty/additional excise duty 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.
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. Gateway
of Tally > Vouchers > press F7 (Journal).
Alternatively, press Alt + G (Go To) >Create
Voucher > press F7 (Journal).
You can also create a journal voucher from
Gateway of Tally > Display More Reports > Statutory Reports > GST
Reports > GSTR-1 or GSTR-2
a. Press
Alt + J (Stat Adjustment).
b. In
the Stat Adjustment Details screen,
select the options as show below:
2. Nature
of adjustment – Select the Opening Balance from the List of Nature of
Adjustments.
3. Transfer
the tax credit of service tax and CENVAT to central tax ledger.
4. Transfer
the tax credit of VAT to state tax ledger.
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.
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.
Record Advances Received Under GST
As a supplier of services, you may require
an advance payment at the time of receiving a purchase order to safeguard the
expenditure on resources required for a specific service. For instance, there
is an order for glass-coating 8,000 sq. meters of a pipeline in a power plant
project. In such a case, you may require an advance payment from the party to
secure the manufacturing and supply cost of the coating material.
So, in your business, there can be
situations in which you will receive advance payments from parties. As per
Section 12 to 14 of the CGST Act, 2017, the time of the supply of services
decides the period in which you need to pay GST, and the time of supply is
considered as per the voucher date of the advance payment received from the
party.
So, if the purchase order is of INR 10
lakhs issued for the supply of services in the month of Jul-22, and you have an
advance receipt of INR 1 lakh in the month of May-22, then you will need to pay
GST for:
INR 1 lakh in the May-22 return period.
The
rest of the sum (9 lakh), as per the voucher date on which the party gives the
rest of the payment.
Advance receipts for composition
dealers
It is important to note that as per
notification 66/2017 dated 15.11.2017, if you have not opted for the
composition scheme, then you are not liable to pay GST on the advances
received.
Flexibility to follow journal voucher
approach
You can also use Journal vouchers to
record advance receipts, if you follow the practice in your business.
Adjustment of advance received in sales
invoice
If you have certain unadjusted advance
amount, then UCI-AC Release 3.0 and onwards, you have a facility to specify the
amount so that you can easily adjust the same in your sales invoices.
Refund of advance received
In case of refunds, you can create a
Credit Note and the liability against the advance amount received gets reversed
automatically, while you have the flexibility to reverse the liability using a
Journal voucher.
In this topic, you will understand the
procedures to account for the GST advances received, setting off the advances
received in a sales invoice, and how to record the refund of an advance
received.
Set Up UCI-AC to Set Off GST Advance Receipts in Sales
Invoices
You will need to set up UCI-AC to record
GST advance receipts. The setup will enable you to set off GST advances
received from parties in sales invoices.
1. Press
F11 (Company Features) > Set/Alter Company GST Rate and Other Details: Yes
and press Enter.
2. Show
GST Advances for adjustments in transaction: Yes.
If you
have received some advance amount from a party that you are yet to adjust in
sales invoice, then you can specify the same using GST Advances – Opening Balance.
3. Enter
the Applicable from date.
4. You
will be able to set off GST advance receipts in sales invoices right from the Applicable from date.
5. For
example, if you enter 1-Apr-22, then you can adjust advances in sales invoice,
from 1-Apr22 onwards.
If you have multiple GST registrations,
then the setting will get implemented for all the GST registrations.
It is necessary
to enter a date that falls after the Return period in which you had reported
GST liabilities using Journal vouchers. This ensures that your GST returns
until that period remains unaffected.
For instance, if
you had reported GST liabilities using Journal vouchers until 31Mar-22, then
the Applicable from date must be
1-Apr-22 or later than that.
This ensures that
the GST returns of 31-Mar-22 and earlier remain unaffected and the Journal
vouchers are retained in the GST returns.
In this case, if
the Applicable from date is set
31-Mar-22 or earlier, then
UCI-AC starts
reporting GST liabilities in the GST Returns based on the Advance Receipts,
thereby replacing the Journal vouchers with Advance Receipts.
Raise Tax Liability for Advances Received
There may be some advances for which you
have recorded the vouchers, but you are yet to raise the tax liability.
You can record a Journal voucher to raise
the tax liability for such vouchers.
1. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
2. Specify
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of Adjustment: Increase in Tax Liability.
d. Additional
Details: On Account of Advance Receipts.
3. Under
By, select the ledger for GST on
Advance grouped under Expense and
enter the Amount.
4. Under
To, select the SGST and CGST or
IGST, as applicable, and enter the Amount
against each ledger.
5. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample Journal voucher recorded to raise
the tax liability appears as shown below:
The Journal voucher for the tax paid on
advance received appears under the Tax
Liability
(Advances Received) – 11A(1), 11A(2)
section of GSTR-1.
Provide Opening Balance for Unadjusted GST Advances Received
You may have received some advance amount
from a party that you are yet to adjust in sales invoice.
If you have any advance amount received
from parties that is yet to be adjusted in sales invoices, then you can specify
the amount in GST Advances – Opening
Balance.
1. Press
Alt + G (Go To) > type or select GST Advances – Opening Balance and
press Enter.
2. Select
Create Opening Balance (Advance Receipt) and press Enter.
Under GST
Registration, select the Registration
Name for which you want to provide the opening balance for advance receipt.
3. Provide
the party details.
a. Select
Party Name from List of Ledger Accounts.
b. Place of Supply: The place at which the
party avails the services.
c. Supply attracts Reverse Charge: Yes, if the services fall under GST
reverse charge mechanism.
d. Otherwise,
set it as No.
4. Provide
the details of advances received.
a. Date of GST Advances: The date on which
you had received the advance from the party.
The date should be earlier than the Applicable from date that you entered
while enabling Show GST Advances for
adjustments in transaction under F11.
a. Taxability:
Taxable.
b. GST Rate: The tax rate applicable to
the service.
c. Unadjusted Advance Amount: The amount
received from the party on the date that has remained unadjusted.
d. Taxable Amount and IGST or CGST & SGST get calculated based on the
specified GST Rate and Place of Supply.
You can add multiple GST advance amounts
received from parties that are yet to be adjusted.
5. As
always, press Ctrl + A to save.
Subsequently, you can set off the opening
balance by selecting the amount while recording sales invoice for the party.
Once you set up UCI-AC to account for
advances received under GST from parties, you can record GST advance receipts.
1. Press
Alt + G (Go To) > Create Voucher > press F6 (Receipt).
2. Specify
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Nature
of Receipt: Advance Receipt.
3. Under
Account, select the cash or bank
account from List of Ledger Accounts.
4. Under
Particulars, select the party.
5. Specify
the advance receipt details.
a. Particulars: Select the sales ledger,
as applicable.
b. Advance Amount: Enter the advance
amount received from the customer.
c. Taxable Value: The system will take the
taxable value, based on the ledger.
d. Press
Ctrl + A to accept the screen.
6. .
Provide other necessary details, as needed, and press Ctrl + A to save.
A sample advance receipt voucher appears
as shown below:
Once you record an advance received from a
party, the voucher will be included in return and you can view it in GSTR-1 of
UCI-AC.
In GSTR-1 – Voucher Register, the
voucher will appear as Advance Receipts (Included in Returns).
1. Press
Alt + G (Go To), type or select GSTR-1 and press Enter.
Alternatively,
Gateway of Tally > Display More Reports > GST Reports > GSTR-1 and
press Enter.
2. Drill
down on the Included in Return row
to view the voucher.
In
this section
1. Set off GST
advances received in sales invoice
2. Auto Adjust
GST Advances received during voucher creation
3. Add sales
returns amount to GST Advances for adjustment
Set off GST advances received in sales
invoice
If you are following the process of
recording Journal vouchers to set off advances, then you can do so to keep your
books of accounts updated.
1. Ensure
that you have recorded Advance Receipt or provided Opening Balance for the
unadjusted advance amount, as applicable.
2. Press
Alt + G (Go To) > Create Voucher > press F8 (Sales).
3. Select
the party and provide the details in the Dispatch
Details and Party Details
screens. In the Party Details
screen, Place of Supply is the place at which the the services are going to be
availed.
4. Select
the service ledgers, and enter the Amount.
5. Select
the IGST or SGST & CGST ledgers, as per the Place of Supply mentioned in the Party Details screen, and press Enter.
6. .
Press Enter on the total Amount, provide the Bill-wise Details
for the party and press Ctrl + A to
save.
7. Provide
the details of advance amount that needs to be set off in the the sales
invoice.
a. Select
the advance amount against which you are creating the sales invoice and press Enter.
1. The advances pending for adjustment are
displayed based on the Applicable from
date entered under the Show GST Advance
to set off in transactions in the F11
features.
If you have entered 1-Apr-22 as the applicability
date, then the advance receipt amount recorded in the month of Mar-22 will not
be displayed.
2. This screen displays the advance amount
only if the Advance Receipt voucher created for the same is in the Included in Return section of GSTR1.
8. If the sales invoice is uncertain due to mismatch of
information or missing information, then even though you have set off the
advance amount, UCI-AC will consider it unadjusted, until you resolve the
invoice.
a. Change
the Amount, if needed.
b. Press
Enter on Show More, if you want to view more advance amounts pending for
adjustment.
c. Press
Ctrl + A to accept the screen.
9. .
Provide other necessary details, as needed, and press Ctrl + A to save.
A sample sales invoice for adjustment of
the GST advance appears as shown below:
The amount of advance set off in the sales
invoice gets deducted from the unadjusted advance amount.
If the sales invoice is lesser than the
advance amount, then the differential advance amount appears as unadjusted,
until you create a sales invoice for the party and adjust the amount in it.
However, if there is a case of sales
return, you need to record a Credit Note for the party so that the amount
starts appearing as unadjusted to set off in the sales invoice.
Auto Adjust GST Advances received during
voucher creation
You can set up UCI-AC to automatically
adjust the advances received at the time of recording a sales invoice. In such
a case, you will not need to select the amount of advance received to set off.
On the other hand, UCI-AC will match the amount of advance received with the
GST rate and place of supply mentioned in the advance receipt voucher and the
party ledger and set off the amount automatically, based on First In, First Out
(FIFO) system.
1. While
recording a sales invoice, press F12
(Configure).
2. Auto-adjust
GST Advance during voucher creation: Yes.
3. Press
Ctrl + A to save the setting, as
always.
Henceforth, while recording sales
invoices, you will not get the Details
of Advance Amount to be Adjusted screen to set off amounts corresponding to
the advances received, as UCI-AC will automatically do so.
UCI-AC identifies the unadjusted advance
amount received from the party and adjusts it in the sales invoice, based on
the invoice amount.
Add sales returns amount to GST Advances
for adjustment
For reasons such as cancellation of
service order, a situation of sales returns may arise. In such a case, you will
need to record credit note for sales returns.
For instance, you may be an advocate or a
CA and may have received a service order with an advance payment, which gets
cancelled later. So, you will need to account for sales returns.
While recording a credit note for the
sales return, follow the step given below.
1. Press
F12 (Configure) > Add Returns Amount to GST Advance for adjustments: Yes and
press Ctrl + A to save.
2. Provide
GST details: Yes.
3. Provide
the details regarding the credit note.
a. Reason
of Issuing Note: 01-Sales Return.
b. Buyer’s Debit Note No.: The number on
the debit note issued by the buyer for the sales return.
c. Date: The date on which debit note was
issued by the buyer.
d. Press
Ctrl + A to accept the screen.
4. Press
Enter on the total Amount.
5. Select
the advance amount from the Advance
Amount Pending for Adjustment list and press Enter.
You can choose to set off more than one
advance amount, as per the total amount in the voucher.
Once you choose an advance amount, it gets
added to the reference and starts appearing as pending for adjustment when you
create a sales invoice.
Moreover, you can also press Enter on Show Zero Valued and select a reference to which the value has to
be added even though that reference does not have any value for adjustment.
This is useful when the advance is fully
adjusted. So, the reference becomes Zero Valued. When a sales return takes
place and you choose the Zero Valued reference, the amount of sales return gets
added to the Advance Amount Pending for Adjustment, which you can set off when
you create a sales invoice for the party.
6. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample Credit Note recorded for the
sales returns appears as shown below:
Once you record the credit note for a
particular amount against a sales return, the total unadjusted advance in the
next sales invoice you create will increase by the amount for which the credit
note is created.
Record Refund of Advances Received
It may be possible that a party had paid you
an advance, but later on, the party cancelled the order. So, you will be
refunding the advance amount to the party. It may also happen that you will
need to refund a certain part of the advance received on your service due to
the decrease in the magnitude or duration of service you offered, as
applicable.
You can account for the refund amount
using a payment voucher.
Now, consider that you need to make a
refund of INR 30,000, as the party cancelled the order.
1. Press
Alt + G (Go To) > Create Voucher > press F5 (Payment)..
2. Specify
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Nature
of Payment: Refund of Advance Receipt.
3. Under
Particulars, select the Party from
List of Ledger Accounts.
4. Provide
the details of the refund.
a. Ledger: Service ledger applicable to
the advance receipt.
b. Refund Amount: Enter the amount that
you are refunding to the customer.
c. Press
Ctrl + A to accept the screen.
5. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample payment voucher created for the
refund of advance appears.
Record Advance Payments Under GST
In your business, there may be situations
in which you need to make an advance payment to your suppliers to avail certain
services from them. This is because, many a times, suppliers need an advance
payment to handle their manufacturing expenditure or investment on the
resources required for the services. As per Section 12 to 14 of the CGST Act,
2017, suppliers are liable to pay GST on the
advance payments received from their customers.
If the services supplied by the suppliers
fall under the reverse charge mechanism or RCM, then you will need to pay GST
on advance payments made to the suppliers. Moreover, you need to pay GST in the
month entered in the voucher date on which the payment is made to the supplier.
So, if the purchase order is of INR 10
lakhs issued for the supply of services in the month of Jul-22, and you have
made an advance payment of INR 1 lakh in the month of May-22, then you will
need to pay GST for:
·
INR 1 lakh in the May-22 return period.
·
The rest of the sum (9 lakh), as per the voucher
date on which the party receives the payment from you.
Subsequently, the voucher will reflect in
the 3.1 Tax on Outward and Reverse
Charge Inward Supplies section of GSTR-3B with the period and the type of
tax to be paid as per the place of supply.
Flexibility to follow journal voucher
approach
You can also record advance payments using
journal voucher, if you follow the practice in your business.
Refund of advance paid
In case of refunds, you can create a Debit
Note and the liability against the advance amount paid gets reversed
automatically. However, you have the flexibility to reverse the liability using
a journal voucher.
In this topic, you will understand the
procedures to account for the GST advances paid, setting off the advances paid
in a purchase voucher, and how to record the refund of an advance paid.
Reverse charge
liability on purchase from unregistered dealers, which was suspended till
30.09.2019, has been withdrawn. The Government would be specifying the category
of Registered Dealer, for whom reverse charge mechanism would be applicable on
purchases made from unregistered dealers.
Set Up UCI-AC to Account for GST Advance Payments
You will need to set up UCI-AC to record
advance payments made to suppliers for the
RCM services provided by them. The setup
enables you to view the advance payments that can be be set off in the purchase
vouchers while you are recording the vouchers.
If you do not want to set off the GST
advances paid in purchase transactions, then you do not need to set up UCI-AC
for the same. In that case.
1. Press
F11 (Company Features) > Set/Alter Company GST Rate and Other Details: Yes
and press Enter.
2. Show
GST Advances for adjustments in transaction: Yes.
If you have paid some advance amount to a
supplier that you are yet to adjust in the purchase vouchers, then you can
specify the same using GST Advances –
Opening Balance.
3. Enter
the Applicable from date.
You will be able to set off GST advance
payments in purchase vouchers right from the Applicable from date.
For example, if you enter 1-Apr-22, then
you can adjust advances in purchase vouchers from 1-Apr-22.
I t is necessary to enter a date that falls
after the Return period in which you had reported the GST liabilities using
journal vouchers. This ensures that your GST Returns until that period remain
unaffected.
For instance, if you had reported the GST
liabilities using journal vouchers until 31-Mar-22, then the Applicable from date must be set to
1-Apr-22 or later. This ensures that the GST Returns of 31-Mar-22 and earlier
remain unaffected and the journal vouchers are retained in the GST Returns.
In this case, if the Applicable from date is set to 31-Mar-22 or earlier, then
UCI-AC starts
reporting the GST liabilities in the GST Returns based on the Advance Payments,
thereby replacing the journal vouchers with Advance Payments.
If you have multiple registrations, then
the configuration will get implemented for all the GST registrations.
Raise Tax Liability for Advances Paid
There may be some advances for which you
have recorded the payment vouchers, but you are yet to raise the tax liability.
You can raise the tax liability for such vouchers by recording a journal
voucher.
1. Press
Alt + G (Go To) > Create Voucher > press F7 (Journal).
2. Provide
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Type
of duty/tax: GST.
c. Nature
of adjustment: Increase of Tax Liability.
d. Additional
Details: Advances Paid under Reverse Charge.
3. Under
By, select the ledger for tax on
Advance grouped under Direct Expenses, and enter the Amount.
4. Under
To, select the SGST and CGST or IGST
ledgers, as applicable, and enter the Amount
against each ledger.
5. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample journal voucher recorded to raise
the tax liability appears as shown below:
The journal voucher for the tax paid on
the advance payment appears under the Not
Relevant for This Return section of GSTR-3B.
Provide Opening Balance for Unadjusted GST Advances
You may have paid some advance amount to a
supplier that you are yet to adjust in purchase voucher.
1. Press
Alt + G (Go To) > type or select GST Advances – Opening Balance and
press Enter.
2. Select
Create Opening Balance (Advance Payment) and press Enter.
3. Provide
the party details.
a. Select
Party Name from List of Ledger Accounts.
b. Place of Supply: The place at which the
party avails the services.
c. Supply
attracts Reverse Charge: Yes.
4. Provide
the details of advances paid.
a. Date of GST Advances: The date on which
you had paid the advance to the party.
b. Taxability:
Taxable.
The date should be before the Applicable from date that you entered
while enabling Show GST Advances for
adjustments in transaction under F11.
c. GST Rate: The tax rate applicable to
the service.
d. Unadjusted Advance Amount: The amount
paid to the supplier on the date, which is still unadjusted.
e. Taxable Amount and IGST or CGST & SGST get calculated based on the
specified GST Rate and Place of Supply.
You can add multiple unadjusted advances
paid in this screen.
5. As
always, press Ctrl + A to save.
Subsequently, you can set off the opening balance
by selecting the amount while recording purchase vouchers for your party.
Once you set up UCI-AC to account for
advances paid under GST to suppliers, you can record GST advance payments.
1. Press
Alt + G (Go To) > Create Voucher > press F5 (Payment).
2. Specify
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. The
Stat Adjustment for: GST screen appears.
c. Nature
of Payment: Advance Payment Under Reverse Charge.
3. Under
Account, select the cash or bank
account from List of Ledger Accounts.
4. Under
Particulars, select the party.
5. Specify
the advance payment details.
a. Particulars: Select the purchase
ledger, as applicable.
b. Advance Amount: Enter the advance
amount paid to the vendor.
c. Taxable Value: UCI-AC considers the
taxable value, based on the tax details entered in the ledger.
In case of advance payments for the
receipt of RCM services, the payment amount will be equal to the taxable value.
d. As
always, press Ctrl + A to save the Advance Payment Details screen.
6. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample advance payment voucher appears
as shown below:
Once you record an advance that is paid to
a supplier, the voucher will be included in return and you can view it in
GSTR-3B of UCI-AC.
In GSTR-3B – Voucher Register, the voucher
appears as Advance Payments (Included in Returns).
1. Press
Alt + G (Go To), type or select GSTR-3B and press Enter.
Alternatively, Gateway of Tally >
Display More Reports > GST Reports > GSTR-3B and press Enter.
2. Drill
down on the Included in Return row
to view the voucher.
In
this section
1. Set off GST
advances paid in purchase voucher
2. Auto Adjust
GST Advances paid during voucher creation Add sales
returns amount to GST Advances for adjustment
Set off GST advances paid in purchase
If you are following the process of
recording Journal vouchers to set off advances, then you can do so to keep your
books of accounts updated.
1. Ensure
that you have recorded Advance Payments or provided Opening
Balance for Unadjusted GST Advances Paid, as applicable.
2. Press
Alt + G (Go To) > Create Voucher > press F9 (Purchase).
Alternatively, Gateway of Tally > Vouchers
> press F9 (Purchase).
3. Select
the party and provide the details in the Dispatch
Details and Party Details
screens. In the Party Details
screen, Place of Supply is the place at which the the services are going to be
availed.
4. Select
the ledger created for purchase of services, and enter the Amount.
5. Press
Enter on the total Amount, provide the Bill-wise Details
for the party, and press Ctrl + A to
save.
6. .
Provide the details of advance amount that needs to be set off in the the
purchase voucher.
a. Select
the advance amount against which you are creating the purchase voucher and
press Enter.
1. The advances pending for adjustment
will be displayed based on the Applicable
from date that you have entered under the Show GST Advances for adjustments in transaction in the F11 features. If you have entered
1-Apr-2022 as the date, then the advance payment amount recorded in the month
of March-2021 will not be displayed.
2. This screen will display the advance
amount only if the Advance Payment voucher created for the same is in the Included in Return section of GSTR1.
7. If the purchase voucher is uncertain due to mismatch of
information or a missing piece of information, then even though you have set
off the advance amount, UCI-AC considers it as unadjusted, until you resolve
the voucher.
a. Change
the Amount, if needed.
b. Press
Enter on Show More, if you want to view more advance amounts pending for
adjustment.
c. Press
Ctrl + A to accept the screen.
8. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample purchase voucher for adjustment
of the GST advance appears as shown below:
The amount of advance set off in the purchase
voucher gets deducted from the unadjusted advance amount.
If the amount in the purchase voucher is
lesser than the advance amount, then the differential advance amount appears as
unadjusted, until you adjust the entire balance amount while making purchase
entries. However, if there is a case of purchase return, then you need to
record a Credit Note for the party so that the amount starts appearing as
unadjusted to set off in the purchase voucher.
Auto Adjust GST Advances paid during
voucher creation
You can set up UCI-AC to automatically
adjust the advances paid at the time of recording a purchase voucher. In such a
case, you will not need to select the amount of advance paid to set off. On the
other hand, UCI-AC will match the amount of advance paid with the GST rate and
place of supply mentioned in the advance payment voucher and the party ledger
respectively, and set off the amount automatically, based on First In, First
Out (FIFO) system.
1. While
recording a purchase voucher, press F12
(Configure).
2. Auto-adjust
GST Advance during voucher creation: Yes.
3. Press
Ctrl + A to save the configuration,
as always.
Henceforth, while recording purchase
vouchers, you will not get the Details
of Advance Amount to be Adjusted screen to set off amounts corresponding to
the advances paid, as UCI-AC will automatically do so.
UCI-AC identifies the unadjusted advance
amount paid to the supplier and adjusts it in the purchase voucher, based on
the voucher amount.
Add purchase returns amount to GST
Advances for adjustment
For reasons such as reduction in the
duration of services or cancellation of purchase order, there may be purchase
returns.
For instance, you may have provided
advance to an advocate for legal services. Thereafter, you had to cancel it or
reduce the duration of services. In such a case, you will get a purchase return
from the vendor for which you will need to record a Debit Note.
While recording a Debit Note for the
purchase return:
1. Press
F12 (Configure) > Add Returns Amount to GST Advance for adjustments: Yes,
and press Ctrl + A to save.
2. Provide
GST details: Yes.
3. Provide
the details regarding the Debit Note.
a. Reason
of Issuing Note: 01-Sales Return.
b. Supplier’s Debit/Credit Note No.: The
number on the credit note issued by the supplier.
c. Date: The date on which credit note was
issued by the supplier.
d. Press
Ctrl + A to accept the screen.
4. Press
Enter on the total Amount.
5. Select
the advance amount from the Advance
Amount Pending for Adjustment list. You can choose to set off more than one
advance amount, as per the total amount in the voucher.
Once you choose an advance amount, it gets
added to the reference and starts appearing as pending for adjustment when you
create a purchase voucher. Moreover, you can also press Enter on Show Zero Valued
and select a reference to which the value has to be added even though that
reference does not have any value for adjustment. This is useful when the
advance is fully adjusted. So, the reference becomes Zero Valued. When a
purchase return takes place and you choose the Zero Valued reference, the
amount of purchase return gets added to the advance amount Pending for
Adjustment, which you can set off when you create a purchase voucher for the
party.
6. .
Provide other necessary details, as needed, press Ctrl + A to save.
A sample Debit Note recorded for the
purchase returns appears as shown below:
Once you record the Debit Note for a
particular amount against a purchase return, the total unadjusted advance in
the next purchase voucher you create will increase by the amount for which the
Debit Note is created.
Record Refund Received from Supplier Against Advance
Payments
It is possible that you had paid an
advance to a party for an order. However, later on, you cancelled the order.
So, you will be receiving a refund from the supplier. It may also happen that
you will receive a refund of a certain part of the advance paid because the
service order is cancelled or you availed the services for a shorter duration
compared to the original order, or other reasons.
You can account for the refund amount
received from the supplier using a receipt voucher.
Now, consider that you received a refund
of INR 35,000 for cancellation of the purchase or any other reason.
1. Press
Alt + G (Go To) > Create Voucher > press F6 (Receipt).
2. Specify
the stat adjustment details.
a. Press
Alt + J (Stat Adjustment).
b. Nature
of Payment: Refund of Advance Payment.
3. Under
Particulars, select the Party from List of Ledger Accounts.
4. Provide
the details of the refund.
a. Ledger: Service ledger applicable to
the corresponding advance payment.
b. Refund Amount: Enter the amount that
you received as a refund from the customer.
c. Press
Ctrl + A to save the Refund Details screen.
5. Provide
other necessary details, as needed, and press Ctrl + A to save.
A sample receipt voucher created for the
refund of advance appears as shown below: