GST Tutorials

How Tally.ERP 9 Simplifies Generating E-Way Bills for you?

Posted on by Tally Academy

generating-e-Way-Bills-using-Tally-ERP-9

You might have already generated e-Way Bills for your business since e-Way Bills are mandatory for interstate movement of goods in India from April 1st onwards.

An e-Way Bill has to be generated if the total of taxable value and tax amount in the invoice of goods being transported exceeds Rs. 50,000, and in few States for intrastate transactions as well.

By now, you must also be aware of the challenges involved in generating e-Way Bills. It is quite likely that you are evaluating a software to make it easy for you to generate and manage e-Way Bills, or you are already using Tally.ERP 9 to do so.

In this blogpost, we will take you through the various challenges that businesses go through on a typical day and how Tally.ERP 9 supports them by helping generate e-Way Bills in a faster and simplified way. Tally.ERP 9 Release 6.4 has been launched with the purpose to make e-Way Bill generation and management easy for you.

Generating e-Way Bills faster using Tally.ERP 9

For many businesses, generating e-Way Bills is now mandatory in addition to their routine activities. Businesses need to generate e-Way Bills faster and correctly for overall efficiency.

Businesses such as distributors of machinery, electrical equipment, consumer durables, wholesalers and manufacturers who dispatch goods in bulk will find it handy to generate an e-Way Bill right at the time of creating the invoice.

Keeping this in view, at the time of creating the invoice after you have provided all the invoice level details, Tally.ERP 9 opens an additional form where you can provide transportation and other details required for generating e-Way Bill.

On the other hand, a business involved in dispatching small quantities of goods such as FMCG distributors will find it a hindrance to generate e-Way Bills for every transaction. They will prefer to generate e-Way Bills in bulk since they dispatch goods for multiple orders at the same time.

In such a case, you can disable the e-Way Bill form in Tally.ERP 9 when creating sales invoices. When you are ready to dispatch goods, you can see all the transactions for which e-Way Bills are yet to be generated. You can select them all together and export them as a single JSON file which can be uploaded on the e-Way Bill portal. The portal will generate e-Way Bills for all these invoices in a single click.

How Tally.ERP 9 helps generate e-Way bills correctly?

Errors can take place when entering data. Tally.ERP 9 has inbuilt capability to check for such errors.
In the absence of any mandatory detail such as distance, vehicle number, pin codes of consignee and consignor, and so on, Tally.ERP 9 will not allow you to export the JSON file for the purpose of generating e-Way Bill. It also checks if the GSTIN numbers and Transporter IDs of the parties are correct or not.

Due to all these inbuilt checks, the chances of your JSON file getting rejected in the e-Way Bill portal is minimized. Generation of e-Way Bills will be faster and accurate.

Be sure to not to miss e-Way bills

Typically, businesses are involved in multiple things at the same time. In a hurry, you could send the goods to your transporter without an e-Way Bill. Due to this, your consignment can get delayed and you will miss out on your promise made to customer. This situation can be avoided easily. Tally.ERP 9 ensures that all the transactions for which e-Way Bills are yet to be generated are available in one place in a single report. You will never miss generating the required e-Way Bills. Even if you have created an e-Way Bill in the portal first, you can update the respective transaction with e-Way Bill details at a later stage through this report.

How Tally.ERP 9 helps in generating consolidated e-Way bill?

If the State, place of supply, vehicle no. and mode of transport are the same, then you can group such invoices, generate their individual e-Way Bills and finally consolidate the individual e-Way Bills and generate a single consolidated e-Way Bill.

Tally.ERP 9 helps you in grouping invoices based on the above criteria, with a single click. This makes it convenient for the transporter since he can now carry just the single consolidated e-Way Bill for multiple invoices.
We have taken you through various kinds of business scenarios with respect to e-Way Bills and explained how Tally.ERP 9 handles all of them, simplifying the generation of e-Way Bills. We are eager to hear about your experiences. Download Tally.ERP 9 Release 6.4 and let e-Way Bill management make your business more efficient. Do share your experience with us.

Liability for GST – Transfers, Mergers & Liquidation

Posted on by Tally Academy

Liability-to-Pay-Unpaid-GST-–-Transfers-Mergers-Liquidation

Liability for GST during transfer of business

If a taxable person transfers his business, either wholly or partly, to another person, then both the taxable person and the person to whom the business is transferred, will be having liability for GST – jointly and severally, wholly or to the extent of such a transfer, to pay the tax amount which is due, which will include tax, interest and penalties. It does not matter whether the due tax amount was determined before and after the transfer of business under GST, as long as it is unpaid.

All forms of transfer, ranging from sale, gift, lease, leave and license, hire etc. will be covered under GST liability in transfer of business.

Apart from the unpaid tax amounts, the new owner of the business will also have the liablity to pay GST from the date of transfer. If he carries on the business in a new name, which is different from the original, then he must apply for an amendment of his registration certificate, which will prevent any legal complications.

Liability in case of merger or amalgamation of companies

There could be situation where companies enter into an amalgamation or merger under GST. As per the GST provisions, if two or more companies merge or amalgamate, then they are individually have liability for GST, provided:

  • Under GST, merger or amalgamation has happened due to the order of a court or tribunal
  • Order is to take effect from a date earlier to the date of the order i.e. in retrospective effect
  • Both companies have supplied goods and / or services to each other during the period in between the order date to order effect date

It is to be noted that the merging companies will be treated as separate companies under GST till the date of the order and not the order effect date. Their registrations will stand cancelled on the date of the order.

Liability in case of company liquidation

When any company is being wound up, either under the orders of a court or Tribunal or otherwise, every person who is appointed as a receiver of any assets of that company, will need to inform the Commissioner of his appointment as a liquidator, within 30 days. Post this, the Commissioner may conduct enquiries to confirm the same, and then notify the final amount to the liquidator, which in his opinion, will be sufficient to provide for any tax, interest or penalty, which is payable by the company at that point in time. This amount will need to be communicated to the liquidator by the Commissioner within 3 months of receiving the appointment intimation.

When any private company is wound up, the scenario is little different. If, any tax, interest or penalty payable by the company for any period (whether before or in the course of or after its liquidation) cannot be recovered, then every person who was a director of the company at any time during the period for which the tax was due shall, jointly and severally, have liability for GST payment, interest or penalty. However, if he manages to prove to the Commissioner that such a non – recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company, then he may be excused from paying the due amount.

Recovery of Tax under GST

Posted on by Tally Academy

Recovery-of-Tax-under-GST

When to initiate proceedings for Recovery of Tax?

As per the recovery provisions under GST, if the amount payable by a taxable person, remains unpaid, even after 3 months from the date of issuing the Order for demand of tax, then the recovery of tax under GST will be initiated. However, if the proper officer considers it urgent in the interest of revenue, he may state reasons recording in writing, and direct the concerned taxpayer to make payment in a reduced period as well. In any case, if the demand is not paid in the time specified, then the department will initiate proceedings for tax recovery under GST.

What are the modes of recovery of tax?

The proper officer may recover the tax due in the following tax recovery modes:

  • Deduction of due amount from the tax amount payable to such person by the department
  • Recovery of tax by way of detaining and selling any goods belonging to such person
  • Recovery of tax from another person, from whom money is either due or may become due to such person
  • Recovery of tax from another person, who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government
  • Detention of any movable or immovable property belonging to such person, until the amount payable is paid. If the dues are not paid within 30 days, the said property is to be sold and with the proceeds of such sale the amount payable and cost of sale is to be recovered
  • Recovery of tax through the collector of the district, in which such person owns any property or resides or carries on his business, as if it were an arrear of land revenue. The proper officer will need to prepare a certificate specifying the amount due from such person and hand it over to the concerned collector, for this purpose
  • Recovery of tax by way of application to the appropriate magistrate, who in turn shall proceed to recover the amount as if it were a fine imposed by him
  • Recovery of tax via enforcing the bond or instrument executed under the Act or any rules or regulations made under the Act
  • Recovery of tax done by the proper officer of the State Government or Union Territory Government, wherein, any CGST arrears will be recovered as if it were an SGST / UTGST arrear. Such an amount will be recovered, and then later credited to the account of the Central Government. In case the amount recovered by this means, is less than the amount due, then the amount will be apportioned among the Central Government and State / UT Government in proportion to the amount due to each authority

Provision for paying taxes in Instalments

If the taxpayer cannot pay all the GST dues i.e. tax, interest and penalty, in a lump sum or within the stipulated date, then he can file an application to the Commissioner requesting to pay in instalments. Basis this application, the commissioner can either extend the due date of payment, or, allow the taxpayer to pay the amount in instalments. In either case, the reasons for accepting and rejecting this request, have to be provided in writing.

When paying taxes in instalments however, the taxpayer has to remember the following conditions:

  • Instalments are payable every month
  • A maximum of 24 instalments are allowed i.e., the time of payment can be extended for a maximum of 2 years
  • Interest at 18% must be paid along with the instalment
  • All instalments must be paid on time. A single default will cause the instalments to cease and the entire outstanding balance will become due on that date, and will be recoverable, without any notice

However, please note that this option of paying in instalments is not available for dues under self-assessment. Any tax under self-assessment must be paid in one go.

Determination of Tax Liability under Demand Provisions

Posted on by Tally Academy

Determination-of-tax-liability

In this blog, we will understand the rules laid down for determination of tax liability for calculation of penalty under the demand provisions of GST.

General Provisions for Determination of Tax Liability

The general provisions for determination of tax liability are as follows:

  • If the service of the Show Cause Notice (SCN) or the issue of the Order, both of which are important notifications for a defaulting tax payer, have been stayed by a Tribunal or Court order, then the stay period will be excluded from the maximum time limits specified i.e. 3 years in the case of non-fraud cases and 5 years in the case of fraud cases
  • If the Appellate Authority or Tribunal or Court decides that charges of fraud are not sustainable i.e. the case cannot be labelled as a fraud case, then the case will be handled as a non-fraud one and the SCN issued earlier will be assumed to be a SCN for a non-fraud case. The tax officer will calculate the tax accordingly
  • If the Tribunal or Court directs that an order has to be passed, then it will be issued within two years from the date of the direction
  • An opportunity of a personal hearing will be granted to the taxpayer if they request it in writing, or, if a penalty or any adverse decision is proposed against such person
  • The proper officer can adjourn the personal hearing if the concerned person provides sufficient cause in writing, but, such an adjournment will be allowed for a maximum of 3 times
  • While issuing an order, the proper officer, shall set out the relevant facts and the basis of his decision, in the order itself
  • The amount of tax, interest and penalty demanded in the order will not exceed the amount specified in the notice. All demands will be made, only on the grounds specified in the notice
  • The Appellate Authority or Tribunal or Court can modify the amount of tax determined by the proper officer
  • Interest on tax which is unpaid or short paid, will have to be paid whether or not specified in the order
  • If the order is not issued within 3 years (in case of non-fraud cases) or 5 years (in case of fraud cases), then it is assumed that the adjudication proceedings are completed, and no further orders will be issued afterwards
  • All pending cases, where the decision was against the interest of revenue, might be appealed to a higher authority. For such cases, the period between the date of the original decision and the date of the revised decision of the higher authority, will be excluded from the period of 3 years or 5 years, as applicable
  • Recovery provisions for unpaid or short paid tax and interest levied on the same, is applicable irrespective of the demand provisions
  • Once a penalty is imposed on a taxpayer under the demand provisions specified for fraud and non-fraud cases, no other penalty under any of the GST sections will be applicable

Tax collected but not paid to Government

The following provisions have been specified to handle the scenario of a person collecting tax from another person, but not depositing the same with the Government, i.e. tax collected but not deposited to the Government:

  • The defaulter will have to mandatorily pay the said amount to the Government, irrespective of whether the supplies, for which the amount was collected, are taxable or not
  • If the amount is not paid in time, a proper officer may issue a SCN immediately, for recovery of the amount and penalty equivalent to the amount. There will be no specified time limit for issuing such a SCN
  • The proper officer, will then after considering all the facts, determine the amount finally due from the defaulter. The defaulter will be liable to pay not only the amount, but also the interest at the rate specified, from the date the said amount was collected by him to the date the said amount is paid by him to the Government
  • The proper officer shall issue an order within one year from the date of issue of the notice, post which the amount shall be collected and adjusted against the relevant tax ledgers

Tax wrongfully collected and paid to Central Government or State Government

One of the most common mistakes which can happen for any business is the payment of tax under the incorrect head i.e. CGST + SGST / UTGST being paid in place of IGST or vice versa. The following provisions have been specified to handle tax wrongfully collected:

  • A registered person who has paid CGST + SGST / UTGST on a transaction considered by him to be an intra-State supply, but which was actually an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.
  • A registered person who has paid IGST on a transaction considered by him to be an inter-State supply, but which was actually an intra-State supply, shall not be required to pay any interest on the amount of CGST and SGST / UTGST, which is payable.

Demand under GST

Posted on by Tally Academy

Demand-Provisions-under-GST

As you must be aware, the Goods and Service Tax is largely payable on a self-assessment basis. If the assessee pays the right amount of tax, there is no problem. However, if there is any short payment or wrong utilisation of input credit, then the GST authorities will initiate demand and recovery of tax under GST provisions, against that particular assessee. Under the GST Act, provisions relating to demand and recovery are quite similar to the provisions under the erstwhile Service Tax and Central Excise Act norms. In this blog, we will understand the provisions of demand under GST in detail.

When can a demand under GST be raised?

The GST Act contains elaborate demand provisions under GST as well as provisions for recovery of tax under various situations, which can be broadly classified as follows:

  • Tax is unpaid or short paid
  • Refund is wrongly made
  • Input Tax Credit is wrongly availed or utilised

Now, these situations can happen, either because of an inadvertent bona fide mistake (normal case) or because of a deliberate attempt to evade tax (fraud case). Since the nature of offences is totally different in both the cases, separate recovery and demand provisions under GST have been laid down for each type of case. These provisions attempt to encourage voluntary compliance, under certain specific timelines, which are discussed below.

Demand of tax when there is no fraud

As per the rules of demand in GST, when there is no fraud, no wilful misstatement or no suppression of facts – in other words, no motive to evade tax, the demand of tax provisions are comparatively more lenient.

Time Limit to issue Show Cause Notice & Order

As per the provisions of demand under GST, the proper officer i.e. the concerned GST authority is required to primarily issue 2 notifications, which serve as opportunities to the defaulter – Show Cause Notice (SCN) & Order.

  • Order – 3 years from the due date of filing Annual Return for Financial Year, to which the amount relates
  • Show Cause Notice (SCN) – 3 months before the date of issue of the Order, i.e. 2 years and 9 months from the due date of filing Annual Return for the Financial Year, to which the amount relates.

Once the above notice has been issued, the proper officer can then serve a statement, with details of any unpaid tax / wrong refund etc., for other periods which are not covered in the notice. This means, that a separate notice does not have to be issued for each tax period, which the concerned authority wants to highlight, as per the provisions of demand under GST.

Penalty Scenarios

  • Before SCN – If the taxpayer pays the tax along with interest, based on his own calculations, or the officer’s calculations, and informs the same to the officer in writing, before the SCN is issued, then the officer will not issue any notice, nor charge any penalty. However, if the officer finds that there is a short payment, they can issue a notice for the balance amount.
  • Within 30 days of SCN – If the taxpayer pays all his dues within 30 days from the date of issue of the SCN, then the penalty will not be applicable, and all proceedings and prosecution regarding the notice will be closed.
  • Within 30 days of Order – If the taxpayer pays all his dues within 30 days from the date of issue of the Order, then penalty will be charged at 10% of tax subject to a minimum of INR 10,000.
  • After 30 days of Order – If the taxpayer pays all his dues after 30 days from the date of issue of the Order, then penalty will be charged at 10% of tax subject to a minimum of INR 10,000.

To sum up,

Due Payment Date Penalty
Before SCN No penalty
Within 30 days of SCN No penalty
Within 30 days of Order 10% subject to a minimum of INR 10,000
After 30 days of Order 10% subject to a minimum of INR 10,000

Demand of tax when there is fraud

As per the demand rules in GST, such provisions arise, when there is unpaid or short paid tax, wrong refund or wrong utilisation of ITC, under the following situations:

  • Fraud
  • Wilful misstatement
  • Suppression of facts

Time Limit to issue Show Cause Notice & Order

As per the provisions of demand under GST, even in the case of fraud, the proper officer i.e. the concerned GST authority is required to primarily issue 2 notifications, which serve as opportunities to the defaulter – Show Cause Notice (SCN) & Order. However, the timelines are different as follows:

  • Order – 5 years from the due date of filing Annual Return for Financial Year, to which the amount relates
  • Show Cause Notice (SCN) – 6 months before the date of issue of the Order, i.e. 4 years and 6 months from the due date of filing Annual Return for the Financial Year, to which the amount relates.

Once the above notice has been issued, the proper officer can then serve a statement, with details of any unpaid tax / wrong refund etc., for other periods which are not covered in the notice. Similar to the previous scenario, a separate notice does not have to be issued for each tax period, which the concerned authority wants to highlight, as per the provisions of demand under GST.

Penalty Scenarios

  • Before SCN – If the taxpayer pays the tax along with interest, based on his own calculations, or the officer’s calculations, and informs the same to the officer in writing, before the SCN is issued, then the officer will not issue any notice, but a penalty of 15% will be charged. However, if the officer finds that there is a short payment, they can issue a notice for the balance amount.
  • Within 30 days of SCN – If the taxpayer pays all his dues within 30 days from the date of issue of the SCN, then a penalty of 25% will be applicable, and all proceedings regarding the notice will be closed.
  • Within 30 days of Order – If the taxpayer pays all his dues within 30 days from the date of issue of the Order, then a penalty of 50% will be applicable, and all proceedings regarding the notice will be closed.
  • After 30 days of Order – If the taxpayer pays all his dues after 30 days from the date of issue of the Order, then penalty will be charged at 100% of the tax amount.

To sum up,

Due Payment Date Penalty
Before SCN 15%
Within 30 days of SCN 25%
Within 30 days of Order 50%
After 30 days of Order 100%

Note: However, as per the latest demand rules in GST, with respect to self-assessed tax and / or any amount collected as tax, a penalty of 10% will still be payable where payment has not happened within 30 days from the due date of payment of the tax. In these cases, penalty will be applicable irrespective of whether or not the taxpayer pays before or after SCN i.e. the due date of payment will be considered more important than date of issue of SCN, over-riding all the rules stated above.

The GST Act also ensures timely disposal of cases by further providing that if the Order is not issued within the stipulated time limit of 3 years or 5 years, as the case may be, the adjudication proceedings shall be deemed to be concluded. This has ensured a strong mechanism for recovery and demand in GST, which will hopefully go a long way to wipe out tax evasion across the nation.

Transaction Sub-Types in E-way Bill

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Transaction-Sub-Types-in-E-way-Bill

In this blog, we will go through the various transaction sub-types in e-way bill, which are available as options, and what each sub-type represents.

Transaction types in e-way bill

On the e-way bill portal, once you start to fill up the form to generate a new e-way bill, you will come across a section called “Transaction Details”. The first field within this section is “Transaction Type”.

Now, if we recall the e-way bill rules, they state that an e-way bill is liable to be raised for primarily the following reasons –

  • In relation to a supply
    • Supply made for a consideration (payment) in the course of business
    • Supply made for a consideration (payment) which may not be in the course of business
    • Supply without consideration (without payment)
  • For reasons other than supply – which includes job work, removal for testing purpose, send on approval basis etc.
  • Due to inward supply from an unregistered person

Based on the above mention e-way bill rules, the options are available in the e-way bill portal. In the “Transaction Type” field, you will need to select either “Outward” or “Inward”. You need to select the option as “Outward”, if you are supplying goods and select “Inward”, if you are receiving goods.

Based on what you select, the relevant options will show up for the “Transaction Sub-Type” field, which are as follows:

  • Outward
    transaction outward

    • Supply
    • Export
    • Job Work
    • SKD / CKD
    • Recipient Not Known
    • For Own Use
    • Exhibitions or Fairs
    • Line Sales
    • Others
  • Inward
    transaction inward

    • Supply
    • Import
    • SKD / CKD
    • Job Work Returns
    • Sales Return
    • Exhibition or Fairs
    • For Own Use
    • Others

Various transaction sub-types in e-way bill portal

Let us understand the various special kinds of transaction sub-types in e-way bill, which we can see above:

Supply – As discussed above, it will cover supplies made for a consideration in the course of business, supply made for a consideration which may not be in the course of business and supply without consideration. This will cover Inward Supply, Outward Supply, Sales Returns etc.

Export / Import – Inward supplies and outward supplies across country borders

Job Work / Job Work Returns – As discussed above, job work is included under “Reasons other than supply”. In addition to the normal job work scenarios, you need to be aware of the inter-State job work scenario, wherein an e-way bill is mandatory, irrespective of the value of the consignment. Also, as per the recent changes in e-way bill rules, when goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill can be generated either by the principal or the registered job worker as well.

SKD / CKD – SKD stands for “Semi Knocked Down” and CKD stands for “Completely Knocked Down’ which indicates the condition of goods while in transit. An example could be, movement of fan in different parts, which will be assembled later. Depending on whether a consignment is semi knocked down or completely knocked down, the e-way bill needs to be generated.

Recipient Not Known – If we study the e-way rules, especially pertaining to unregistered dealers, we will understand that the recipient may be deemed as known or unknown, based on the knowledge available to the supplier at the time of commencement of movement of goods. In certain business models, unregistered suppliers manufacture goods at their place, and then bring the goods for sale to a common market, where lot of buyers are available. In such a situation, the unregistered supplier will obviously not know at the time of movement of goods, who he is ultimately going to sell the goods to. In such a situation, the e-way bill is not mandatory. However, the unregistered supplier will still have an option to generate the e-way bill. Thus, in case the unregistered dealer chooses to generate an e-way bill under such a scenario, the option “Recipient Not Known” in e-way bill generation screen, will be chosen.

For Own Use – This will be applicable for branch transfers or stock transfers etc.

Exhibition or Fairs – Applicable for Casual Taxable Persons who cause movement of goods for display and sale at exhibitions or fairs at a place, where he does not have a permanent establishment.

Line Sales – Line sales in GST basically imply vertical sales which are made from one unit / department / division of an organisation to another unit / department / division, which is next in the production line. This basically holds true for goods which are output for one process being transported as input for the subsequent process. Line sales in GST is thus an important transaction sub-type to be considered, as “line sales” in e-way bill generation screen will need to be selected.

In conclusion, it is important for businesses to know which transaction sub-type to choose for which business scenario, so that the e-way bill can be generated smoothly and with the right information.

Minimize Mismatches between GSTR-2A and GSTR-3B using Tally.ERP 9

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Mismatches-between-your-GSTR-2A-and-GSTR-3B

Mismatch in Input Tax Credit arising due to any difference in values between inwards supply details (furnished by businesses in their GSTR-3B) and outwards supply details uploaded by respective suppliers (available on GST portal as GSTR-2A) may lead to loss in the claimed Input Tax Credit (ITC).

Let’s look at how GSTR-3B and GSTR-2A mismatch can happen

Typically, you would have declared the consolidated value of your inward supplies in your monthly GSTR-3B returns. Your suppliers would have uploaded their sales invoices in GSTR-1, based on which your inward supplies get auto populated in GSTR-2A.

Now in case there are any discrepancies in the values of inward supplies available in GSTR-2A and inward supplies declared by you for the month in your GSTR-3B, it may lead to loss of Input Tax Credit.

Now let us understand the probable reasons for such mismatches.

Possible reasons for mismatches

  1. Your supplier has not uploaded the invoices for which you have already claimed Input Tax Credit.
  2. Values in the supplier’s invoices are not matching with values available in your books.
  3. You might have missed out recording any Purchases or Debit Notes (Purchase Returns) which resulted in reduced Input Tax Credit.

How to identify GSTR-3B and GSTR-2A mismatch

  1. Firstly, you must compare the purchases available in your books with GSTR-2A (available on GST Portal) of the respective returns period.
  2. You can manually match each purchase invoice and identify the differences or identify invoices that are not available on the GST portal or in your books.
  3. If you identify invoices whose values are either not matching or invoices are not available, connect with the respective supplier and ask him to either upload the related invoice in his latest return which is yet to be filed, or amend the invoice details at the time of filing his returns.
  4. Alternately, you can check the physical copies of respective purchase invoices and correct your purchase data, and accordingly make corrections in your latest GST returns which are yet to be filed by reversing the Input Tax Credit.

How Tally.ERP 9 eases your efforts

  1. Download GSTR-2A of the corresponding period
  2. Open Tally.ERP 9. Go to GSTR-2 Report. Load GSTR-2A into Tally.ERP 9. Within seconds, Tally.ERP 9 will show you the details of invoices which are either –
    1. Fully Matched
    2. Partially Matched: This may be due to partial match between invoices available in the books with invoices available on the GST portal.
    3. Available only in Books: This can happen if your supplier has not uploaded some invoices.
    4. Available only in Portal: This can happen if you have not recorded the transaction in your books but your supplier has uploaded the same.
  3. You can take action on the invoices which are mismatched, available only in books and available only in portal by checking with your suppliers or correcting/recording respective purchase invoices in your books.

You can download and compare GSTR-2A of previous periods with your books for all the GST returns filed for the previous periods to ensure that you have claimed the right Input Tax Credit and identify mismatch of GSTR-2A with GSTR-3B. Also, going forward, you can follow this activity for the returns of all upcoming months to reduce chances of mismatches.

Tally. ERP 9 Release 6.2 and higher versions allow you to import and match GSTR-2A. Download the latest release of Tally.ERP 9 and ensure that you get the right Input Tax Credit.

Managing HSN Codes/SAC and Tax Rates in Tally

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You can specify HSN code/SAC details 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 to specify the HSN code/SAC and tax rate at the same level.

Order in which HSN code and tax rate are applied for goods

Specifying HSN code and tax rate

Based on your business requirements, you can provide HSN codes and tax rates at different levels.

Business Requirement

Definition At

Most of the goods have the same HSN code and tax rate

Company

A group of items have the same HSN code and tax rate

Stock group

A few items have different HSN codes and tax rates

Stock item

Want to apply the same HSN code and tax rate for different transaction types

Sales/purchase ledger group

Want to segregate sales or purchase of items with the same HSN code and tax rate

Sales/purchase ledger

Change the tax rate (not HSN code) during transaction

Transaction

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 the 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. For example, you can use a ledger called Diplomat-Sale for exempt sales of taxable goods when the buyer is a diplomat. Then the rate defined at the ledger level will override the tax rates set at the company, stock group, or stock item levels.

Note: 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

Specifying SAC and tax rate

Based on your business requirements, you can provide SAC and tax rate at different levels.

Business Requirement

Tax Rate Definition At

Most of the services have the same SAC and tax rate

Company

A group of services have the same SAC and tax rate

Service ledger

Want to apply the same SAC and tax rate for different transaction types

Sales/purchase ledger group

Want to segregate sales or purchase of services with the same SAC and tax rate

Sales/purchase ledger

Change the tax rate (not SAC) during transaction

Transaction

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. For example, you can use a ledger called Diplomat-Sale for exempt sales of taxable services when the buyer is a diplomat. Then the rate defined at the ledger level will override the tax rates set at the company level or at the service ledger level.

Note: 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.