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GST FAQ

This topic lists the important FAQ on GST.

No. It is not mandatory to print the date and time of the removal of goods in the GST invoices.
Tally.ERP 9 Release 6 currently does not provide support for composite dealer type.
The HSN code under GST needs to be furnished based on the turnover limit of the dealer during the previous financial year. Therefore, Tally.ERP 9 does not forcefully copy the HSN code on activating GST for your existing data.
In a single invoice, select the stock items attracting different GST rates, and then select the tax ledgers. Press Alt+A to view the tax calculations for each of the stock items selected in the invoice. Refer to Recording GST Sales and Printing Invoices for more information.
1. Ensure that the date of your transaction is on or after 1 July 2017.
2. Select the tax ledgers individually while recording a transaction. Alternatively, create a voucher class to automate the calculation of the GST rates. Refer to Using Voucher Class for Auto Calculating GST in Vouchers for more information.
Create a voucher type with a separate series of voucher numbering and generate the purchase invoice for tracking reverse charge to unregistered dealers. Print the purchase bill as self-invoices by enabling Print GST Analysis of Items? under F12: Configure.
Different states support different formats of the e-Way bill as per the law. Tally.ERP 9 currently supports entry of e-Sugam details for Karnataka. Features supporting e-Way bill for other states will be included in the upcoming releases of Tally.ERP 9.
You have to provide HSN code in each company individually, in one of the following ways:
  • Enter the HSN code in the GST Details screen at the company level.
  • Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup, and enter the HSN code in the GST Rate Setup screen.
Tally.ERP 9 Release 6.0 onwards, the invoice formats have been enhanced for GST. The invoice formats currently supported are Tax invoice, Bill of Supply, and Advanced Receipts.
You can create ledgers named as e-Cash, e-Credit, and e-Liability in Tally ERP 9. You can maintain these ledgers separately for GST.
You can create multiple addresses for one customer in Tally.ERP 9, and update all the GSTINs of that customer along with the corresponding address.
You can have only one GSTIN per company. If you have multiple GSTINs, you need to create multiple companies in Tally.ERP 9.
You can enable the option Maintain Accounts Only in F11: Features > F1, and enable GST in F11: Features > F3.
Auto calculation will happen when you create a voucher class with central tax/state tax/integrated tax as a default additional ledger.
This happens automatically in Tally. ERP 9. There is no provision to capture input credit in GSTR-1 and GSTR-2. You can check the available input tax credit in GSTR-3 by logging in to GSTIN portal. In Tally.ERP 9, check the closing balance of ledgers created under Duties & Taxes. If there is input tax to be availed the tax ledgers will show a debit balance.
You can create capital goods under Fixed Assets, and then enable GST.

In the GSTR-1 report, the first 4 boxes are pre-filled with information related to the company and the return period. Return details begin from box 5.

Since information related to boxes 1-4 are already available on the GSTN Portal, they are not required to be uploaded again. The GSTR-1 excel file does not have fields to capture information from box 1 to box 4. Therefore, Tally.ERP 9 does not provide this information on the GSTR-1 report.

After upgrading to Tally.ERP 9 Release 6, you just have to open all the companies one by one, after which data of all the companies data will be automatically migrated.
VAT TIN gets printed on the bill when VAT is enabled along with GST. If you do not want TIN to be printed, then you can deactivate VAT features.
If you are not sure about the registration type of your party while creating or updating the party master, you can select Unknown as the registration type in the party ledger.

If the method of voucher numbering is set to Automatic, then duplication of the invoice number might occur if you delete invoices. For GST transactions, unique voucher numbers have to be used for all your vouchers. Therefore, we recommend that Automatic (Manual Override) should be set as the method of voucher numbering, which will ensure that unique voucher numbers are set for your vouchers.
No, exempt and taxable goods cannot be part of the same bill. A tax invoice has to be issued for taxable goods and services. A bill of supply has to be issued for exempt, nil rated, and non-GST goods.
There is no separate process for claiming ITC for the purchase of capital goods. The tax paid on the purchase of capital goods is added to the e-credit ledger, which can be used for input credit at any time.
Expenses incurred for the furtherance of business, such as rent (commercial), telephone bill, stationery and so on, can be claimed under GST by recording them as purchases and not as expenses. To record such purchases, create a party ledger (party from whom such goods are procured) and ensure that GSTIN of the party is updated in the ledger. When the supplier uploads his GSTR-1, the details will appear in your GSTR-2A. You can claim input credit by confirming the same in your GSTR-2.
Consignment sales is similar to other sales under GST. You can record the sales invoice with GST ledgers (if it is taxable), and record a tax payment voucher to pay tax.
The warning message Potential Mismatch in Tax Amount for GST !! appears when:
  • GST ledgers are not selected while recording taxable sales or purchases.
  • GST value auto calculated in the taxable sales or purchase invoice is manually altered.

If you proceed with the transaction after this warning appears, then the transaction will appear in the Summary of Exceptions in GSTR-1 (for sales transaction) or GSTR-2 (for purchase transactions), where you can correct the exceptions in the vouchers before exporting GST returns.

Under the GST regime, stock transfer to a godown or to an entity with a different GSTIN registration is considered taxable supply. Hence, if stock is transferred to a godown of the same organisation, it is recorded as a transfer if the godown is operating under the same GSTIN. In case the godown has a different GSTIN, it is recorded as an taxable outward supply. You can record transfers using delivery note or material out voucher types, and taxable outward supplies using sales vouchers in Tally.ERP 9.

In case of supply to a godown outside the state, it is recorded as a taxable outward supply, since the same GSTIN cannot be used for business operations in two different states.

No, the values of duties and taxes are not displayed in Profit and Loss A/c. The consolidated value of all duties and taxes is displayed in Balance Sheet under Current Liabilities. To view ledger-wise value of each tax type, drill down by selecting Duties & Taxes in Balance Sheet.
You have to create a separate company for each registration obtained under GST for the branch offices, and maintain your data.
Works contract is treated as a service under GST. The works contract purchases and sales have to be recorded as taxable purchases and sales. Based on the State in which the party is located, you can select the taxable Nature of transactions provided for sales and purchases, and the GST ledgers in the invoice.

The tax paid on procuring certain services and goods is not eligible for input credit. Services such as renting of motorcab, supply of tour operator services and items that are used in manufacturing of exempt goods fall under this ineligible for input credit category. You can not claim credit for tax paid for these items.

In Tally.ERP 9 you can set goods or services as ineligible for input credit by enabling the option Is ineligible for input credit? to Yes in the GST Details screen of the item master or purchase ledger. This option can be activated by enabling Set ineligible input credit? to Yes under F12: Configure.

You can manage your job work entries using the existing features of job work in Tally.ERP 9. When the GST rules related to job work are finalised, necessary changes will be incorporated, and made available in Tally.ERP 9.

Open your company in Release 6.0.1 and follow the on-screen instructions. For more information, refer to Upgrading to Tally.ERP 9 Release 6.

After installing Tally.ERP 9 Release 6.0.1, select Configure your existing license in the Startup screen and enter your existing license details. For more information, refer to Configuring Tally.ERP 9 License.

Refer to Renewing TSS for Tally.ERP 9 and Upgrading to Tally.ERP 9 Release 6 for detailed information.

Data migrated to a later version of Tally.ERP 9 is not reverse compatible. This means, if you have migrated your data to the latest release, you cannot open the same data using an earlier release of Tally.ERP 9. Therefore, it is recommended that before migrating your data, take a backup or copy of your data and open the backed up data in the earlier release, if needed.

GST is not applicable on free supplies or samples.

In Tally.ERP 9, enable the option Use separate actual and billed quantity columns under F11 > Inventory Features. Now, enter separate billed quantity and actual quantity including the quantity of free supplies/samples while recording the transactions. The value of invoice will be based on billed quantity and quantity of free supplies/samples will be added at zero value.

In case a separate invoice is created for free supplies/samples, record the invoice with zero value.

Common GST tax ledger cannot be used for all GST tax types (Central Tax, State Tax, Integrated Tax, and Cess). Each tax type has to be separately accounted for, which will lead to the following benefits:

  • It will help in the payment of tax under separate tax type heads as required by GSTN.
  • It will help in availing input tax credit for each tax type.
  • It will help the government in ascertaining the revenue for each tax type, which will enable smooth revenue-sharing mechanism.

Common GST tax ledger cannot be used for all GST tax types (Central Tax, State Tax, Integrated Tax, and Cess). Each tax type has to be separately accounted for, which will lead to the following benefits:

  • It will help in the payment of tax under separate tax type heads as required by GSTN.
  • It will help in availing input tax credit for each tax type.
  • It will help the government in ascertaining the revenue for each tax type, which will enable smooth revenue-sharing mechanism.

The actual tax liability and input credit for your business will be available in GSTR-3 on the GSTN portal.

In Tally.ERP 9, the tax liability based on the transactions recorded can be ascertained from GSTR-1. In the default view, the Total Tax Amount in the Total Outward Supplies section is the tax liability of your business for the period.

Similarly, the Total Tax Amount in the Total Inward Supplies section of GSTR-2 is the input credit available to your business for the period.

In Tally.ERP 9 Release 5.0 and later versions, recording inclusive-of-tax transaction is simplified. Earlier you had to create a voucher class with inclusive-of-tax percentages to record inclusive-of-tax transactions.

Now, this can be done by enabling the option Allow entry of rate inclusive of tax for stock item? under F12: Configure in sales or purchase invoice.

To record an inclusive-of-tax transaction

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Click F12: Configure and enable the option Allow entry of rate inclusive of tax for stock item?
The column Rate (Incl. of Tax) appears in the invoice.

Rate (incl. of Tax): Enter the rate of the item including tax in this column. The actual rate will appear in the Rate column. The tax amount will appear automatically on selecting the tax ledgers.

It is required to show GST calculation in the delivery challan. A delivery challan can only be used for the transfer of stock between branches operating with the same GSTIN number within a state.

The GST details recorded in the delivery challan will not have an impact on GSTR-1.

Generating VAT, Excise, Service Tax, TDS, TCS Returns up to 30th June 2017

You can generate your returns for the transactions recorded till 30th June 2017, in Release 6.x.

Upgraded from Release 5.x - Generate returns in 6.x, following the procedure used in Release 5.x.

From Release 4.x and below, to Release 6.0.2 with installation in a new folder

  • Case 1: Resolve exceptions in Release 6.0.2, and generate returns.
  • Case 2: Restore the data backed up while moving to Release 6.x in Release 4.x to a different folder, and generate returns. Release 4.x installation continues to be in the old folder.

From Release 4.x and below, to Release 6.x with installation in the same folder

  • Case 1: Started using Release 6.x before 1-Jul-17, resolve exceptions in Release 6.x, generate returns.
  • Case 2: Started using Release 6.x after 30-Jun-17, you can generate returns from Release 4.x. For this, you install Release 4.93 in a different folder, configure license, restore the data backed up while moving to Release 6.x in a different folder, and generate returns.

Note: If you had been sharing the backup of your data or MS Excel files of purchase and sales registers with your chartered accountant earlier, you can continue to do the same in Release 6.x.

Generating Returns in Release 6.x

VAT

To view the VAT/CST reports and generate the return

  • 1. Go to Gateway of Tally > Display > Statutory Reports > VAT/CST > select the required report.
    After you upgrade from Release 4.x to Release 6.x, you may find your transactions listed under Incomplete/mismatch in information (to be resolved).
  • 2. Select Incomplete/mismatch in information (to be resolved) and press Enter.
  • 3. Resolve all exceptions to include the transactions in the return.
  • 4. Once all exceptions are resolved, you can print the return (press Ctrl+P) or export data to the return formats provided by the state selected for VAT compliance.

To know more about VAT e-filing procedure, watch this video:

Excise for Manufacturers

To view the excise reports and generate the return

  • 1. Go to Gateway of Tally > Display > Statutory Reports > Excise Forms > select the required report. After you upgrade from Release 4.x to Release 6.x, you may find your transactions listed under Uncertain Transactions.
  • 2. Select Uncertain Transactions and press Enter.
  • 3. Resolve all exceptions of Form ER1 or ER3 or ER8 or ER8-Jewel to include the transactions in the return.
  • 4. Once all exceptions are resolved, save the report, print the return (press Ctrl+P), and export it in xml format to file your excise returns.

 

Excise for Traders (Dealer/Importer)

To view the excise report for dealer/importer and generate the return

  • 1. Go to Gateway of Tally > Display > Statutory Reports > Excise Forms > Dealer > Form-2.
  • 2. Select the excise tax unit to view the report.
    After you upgrade from Release 4.x to Release 6.x, you may find your transactions listed under Uncertain Transactions.
  • 3. Select Uncertain Transactions and press Enter.
  • 4. Resolve all exceptions to include the transactions in the return.
  • 5. Once all exceptions are resolved, save the report, and export the data in xml format or to e-return template for filing returns.

 

Service Tax

To view the service tax report and generate the return

  • 1. Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Form ST3.
  • 2. After you upgrade from Release 4.x to Release 6.x, you may find your transactions listed under Uncertain Transactions.
  • 3. Select Uncertain Transactions and press Enter.
  • 4. Resolve all exceptions to include the transactions in the return.
  • 5. Once all exceptions are resolved, save the report and file your returns.

 

TDS and TCS

If you have transactions of TDS and TCS in the data maintained in Release 4.x, after upgrading to Release 6.x, you need to:

  • 1. Resolve the exceptions of TDS and TCS transactions.
  • 2. File returns for TDS and TCS.