How to Create a GST Bill in Tally Prime: Step-by-Step Guide
Introduction
GST
is known as the Goods and Service Tax. It is a type of indirect tax in India
which has replaced many indirect taxes such as excise duty, VAT, service tax,
etc. The Goods and Service Tax came into effect on 1st July, 2017 in
India. It is a consumption tax that is used in India on the supply of goods and
services. GST is a single indirect tax for entire country. In the article “How to Create a GST Bill in Tally Prime: Step-by-Step
Guide” you will get to know how to enter Purchase voucher and Sales voucher
with GST applied on it.
How to Create a GST Bill in Tally Prime: Step-by-Step Guide
Concept of GST
The
GST is just one tax with three components CGST, SGST and IGST. When the supply
of goods or services happens within a state called intra-state transaction,
then the CGST (Central GST) and SGST (State GST) will be collected. Whereas if
the supply of goods and services happens between the states called as
inter-state transactions, then only IGST (Integrated GST) will be collected.
The following indirect taxes have been covered by GST.
·
Central Excise Duty
·
Additional Duties of Excise
·
Special Additional Duty of Customs
·
Cess
·
State VAT
·
Central Sales Tax
·
Purchase Tax
·
Luxury Tax
·
Entertainment Tax
·
Entry Tax
·
Taxes on advertisements
·
Taxes on lotteries, betting and gambling
The following taxes have not been covered by GST.
·
Alcoholic liquor for human consumption
·
Petroleum crude
·
High-speed diesel
·
Motor spirit (commonly known as petrol)
·
Natural gas
·
Aviation turbine fuel etc.
GST Registration
The
GST regime, a business whose turnover is more than Rs.40 lakhs is required to
register as a normal taxable person. But Rs.10 lakhs for North East states and
hill states are required for same. If any organization carries on business
without registering under GST, it will be an offence under GST and heavy
penalties will apply. The following documents are required for GST
Registration.
·
PAN card and Aadhaar card of the applicant.
·
Proof of business registration or incorporation
certificate.
·
Identity and address proof of promoters or director
with photograph.
·
Address proof of the place of business.
·
Bank Account statement/ cancelled cheque.
·
Digital signature
·
Letter of authorization/Board Resolution for
Authorized Signatory.
What is GST BILL?
When
purchase or sale bill is prepared with GST applied on it is called GST Bill. Before
passing bill you should enable GST in Tally Prime.
Enabling GST option in Tally Prime:
To
use GST features in Tally Prime, you need to activate the GST Feature. Once
activated, GST related features are activated in ledger, stock item,
transactions and GST returns. To activate GST features, Press F11 key and set Enable Goods and Service Tax
(GST) option to Yes. Now GST details
screen will be displays. Set the options as per given below. You must do it
before entering any voucher for transaction at the beginning.
Process of Purchase and Sales
Bill with GST in Tally Prime.
Before
doing purchase and sales voucher entry with GST, the user needs to prepare some
ledger accounts. Such as Ledger or Account creation for GST Bill like Sundry
Creditor, Sundry Debtor, CGST, SGST and IGST.
Stock Item creation with GST
GST
rates are mainly applied according to stock items, so calculations of taxes in
GST ledgers are as per stock items. Before transactions in Tally Prime, you
must set the GST Rates in stock items. To set the GST Rates in stock items,
select stock item from create menu. Now stock item creation screen will be
displayed. Set the options as per given below.
In
GST details screen, select appropriate classification in classification field.
All tax details are filling automatically according to the selection of GST Classification.
If you want to enter the tax details manually, then select Undefined
in classification field. Select on Value option in
calculation type field.
Select
On item rate to calculate tax on the basis of
item rate.
Select
Taxable if you buy and sale taxable goods.
Stock item creation using GST Classification
·
Name: Type AC-LG 1.5 Ton in it
·
Under: Select Primary in it.
·
Unit: Select Nos. in it
·
GST applicable: Select Applicable in it.
·
Set/Alter GST Details (GST Rate and Related Details):
Select GST @28% in classification field.
·
Types of supply: Select Goods in it.
Creating GST ledgers (IGST, CGST, SGST, CESS)
IGST Ledger creation:
It
is the main tax head of GST. When a trader exchanges their goods or services
with merchants from one state to other states, the related tax is managed in
integrated tax. Integrated tax is also known as IGST.
Create an integrated (IGST) tax ledger as follow.
·
Name: Enter Integrated Tax in this field
·
Under: Select Duties & Taxes
·
Type of Duty/Tax: Select GST
·
Tax Type: Integrated Tax
·
Percentage of calculation: Enter 0 (Zero)
·
Rounding method: Not applicable
Create a Central (CGST) tax ledger as follow.
·
Name: Enter Central Tax in this field
·
Under: Select Duties & Taxes
·
Type of Duty/Tax: Select GST
·
Tax Type: Central Tax
·
Percentage of calculation: Enter 0 (Zero)
·
Rounding method: Not applicable
Create State GST (SGST) tax ledger as follow.
·
Name: Enter State Tax in this field
·
Under: Select Duties & Taxes
·
Type of Duty/Tax: Select GST
·
Tax Type: State Tax
·
Percentage of calculation: Enter 0 (Zero)
·
Rounding method: Not applicable
Create CESS tax ledger as follow.
·
Name: Enter Cess in this field
·
Under: Select Duties & Taxes
·
Type of Duty/Tax: Select GST
·
Tax Type: Cess
·
Percentage of calculation: Enter 0 (Zero)
·
Rounding method: Not applicable
Recording Local Purchase
Example:
Company has purchased 2 AC-LG 1.5 Ton @27500 and 2 UPS@3200 from Manoj Traders Jaipur
and received a total bill of Rs.77952 from the party. This includes central Tax
of Rs.8276 and State Tax of Rs.8276. the GST rate on ups is 18% and on AC is
28%.
·
Go to voucher from gateway of Tally and click F9:
Purchase button.
1) Now press F12 key
and set the following options
2) Provide supplier
details: No
3) Select common
ledger account for item allocation: yes
4) Use default
bill-wise for bill allocation: yes
5) Provide supplier
invoice details: yes
6) Modify tax rate
details for GST: yes
·
Create or Select Manoj Traders account under sundry
creditor.
·
Select or create Purchase a/c under purchase
·
Create or select stock item with GST applied on it
·
Create or select CGST ledger and SGST ledger
·
Type narration and finish.
Recording Local Sales
Example: the company has sold 2 AC@38500 and 2 UPS@4500 to Entertain
Media House, Jaipur and issued a bill of Rs.109180 including central tax off
11590 and state tax of 11590.
1.
Go to voucher and click F8: Sales button
2.
Press F12 for configuration
3.
Set provide buyers details: No
4.
Provide Dispatch, order and export /Import Details: No
5.
Select common ledger account for item allocation: Yes
·
Create a new ledger as name of Entertain Media House, Jaipur
under Sundry Debtors. Or select if you have already created.
·
Create or select sales ledger under sales account
To print invoice after purchase
and sale follow these steps:
·
Gate way of Tally
·
Open Display Column
·
Click on Day Book
·
Select the certain Bill
·
Use shortcut Ctrl+P or select P:Print option on screen
·
Select Preview or Print
Work sheet:
Purchase Bill:-
Company has purchased 10 Ceiling Fan@1200 and 20 Table Fan@1500 from
Blue Star Company Lucknow, and received a total bill of Rs.47040. This bill
also includes Integrated Tax of Rs.5040. The GST rate is 12% is applicable on
Ceiling Fan and Table Fan.
Company has sold 3 Table Fan@2200 and 2 Ceiling Fan@1800 to Bharat
Enterprises, Lucknow and issue a sales bill of Rs.11424 including an integrated
Tax of Rs.1224.
Conclusion:
This article “How to Create a GST
Bill in Tally Prime: Step-by-Step Guide” must have given you clear cut
idea of GST purchase and GST sales billing. It a small part of GST concept used
in Tally Prime. There are much more to learn about it. So our team will update
with new information as soon as possible. Thank you.
