https://help.tallysolutions.com/docs/te9rel66/Tax_India/gst/faq-masters-jnk-ladakh.htm

FAQ - Masters in Tally.ERP 9 for Jammu & Kashmir and Ladakh

This topic has a few FAQ on using Tally.ERP 9 for creating and maintaining ledgers for companies located in Jammu & Kashmir and Ladakh.

1. What is the State code of Ladakh?

2. Will there be a change in the GST registrations of businesses operating in Jammu & Kashmir?

3. The company’s State is Ladakh or Jammu & Kashmir, and the option Assessee of Other Territory is enabled. Do I continue with the same GSTIN or do I need to obtain fresh registration?

4. Will there be a change in the GST registrations of businesses having head office in Jammu & Kashmir and branch offices in Ladakh?

5. What will be the GSTIN for businesses who are applying for new registrations in Ladakh?

6. If I’m an assessee of other territory in Ladakh, do I need to apply for fresh registration?

7. As per the abrogation of Article 370, the State of Jammu & Kashmir has been split into two Union territories, Jammu & Kashmir and Ladakh. Is it the same for taxation and other statutory purposes?

8. I have created a company with State name as Ladakh. While creating a GST ledger, both State Tax and UT Tax are appearing for selection. Why?

9. Even after the State split, GST rates will not change for goods or services. Will Tally.ERP 9 treat all the SGST rates as UT tax rates?

10. In the Company GST Details screen, I can enter the date for GST applicability but not the date on which Ladakh became a Union Territory. Why?

11. When the party's State is changed from Jammu & Kashmir to Ladakh, the field GSTIN/UIN (prior to 1-Jan-2020) is blank. Why?

12. In case the option Is a transporter is set to Yes in a party ledger, then only 1 GSTIN/UIN field appears for the State of Ladakh. The field for current GSTIN/UIN and prior GSTIN/UIN bifurcation is not appearing. Why?

13. I'm a registered dealer, but I don't have the GSTIN of Ladakh as on 1-Jan-2020. What should I do?

14. My business is now located in Ladakh. Can I retain the State as Jammu & Kashmir and set the option Assessee of Other Territory to Yes to calculate UT tax with effect from 1-Jan-2020?

15. What is the purpose of the F12 configuration Show GSTIN/UIN (prior to 1-Jan-2020) for Jammu & Kashmir in the Company GST Details ?

16. In the Company Alteration screen, the State of my Company is set to Jammu & Kashmir. After upgrading to the latest release, can I change the State of my Company to Ladakh in the Company Alteration screen?

17. My business was in Jammu & Kashmir, but now it is in Ladakh. Where should I update company's State to Ladakh?

18. My business was in the State of Jammu & Kashmir, but now it is a part of Ladakh. To maintain my books of accounts, what should I do?

1.

What is the State code of Ladakh?

The State code (first 2 digits of the GSTIN) of Ladakh is 38.

2.

Will there be a change in the GST registrations of businesses operating in Jammu & Kashmir?

No, there won't be any changes in existing GST registrations.

3.

The company’s State is Ladakh or Jammu & Kashmir, and the option Assessee of Other Territory is enabled. Do I continue with the same GSTIN or do I need to obtain fresh registration?

As per GSTN, assessee of other territory need not obtain a fresh registration. Hence, you can continue to record transactions with the same GSTIN which you have entered in the GSTIN/UIN field of Company GST Details screen. You can also generate the GSTR-1 and GSTR-3B reports for Dec 2019 or Jan 2020.

4.

Will there be a change in the GST registrations of businesses having head office in Jammu & Kashmir and branch offices in Ladakh?

The businesses whose branch office addresses have changed from Jammu & Kashmir to Ladakh have to obtain a new registration for their head office. The State code will continue to be 01, as the head office continues to be in Jammu & Kashmir.

5.

What will be the GSTIN for businesses that are applying for new registrations in Ladakh?

The GSTIN will be of the same format and the new State code will be 38.

6.

If I’m an assessee of other territory in Ladakh, do I need to apply for fresh registration?

No. You don’t have to obtain a fresh registration.

7.

As per the abrogation of Article 370, the State of Jammu & Kashmir has been split into two Union territories, Jammu & Kashmir and Ladakh. Is it the same for taxation and other statutory purposes?

For taxation and other statutory purposes, Jammu & Kashmir is considered as a State, and Ladakh is considered as a Union territory.

8.

I have created a company with State name as Ladakh. While creating a GST ledger, both State Tax and UT Tax are appearing for selection. Why?

Only UT Tax is applicable for Ladakh. For the purpose of recording transactions or entering ledger balances prior to 1-Jan-2020, State Tax is also supported.

9.

Even after the State split, GST rates will not change for goods or services. Will Tally.ERP 9 treat all the SGST rates as UT tax rates?

Currently, this information will not be updated automatically. You have to manually specify the UT tax rate in all the masters for which tax rates are defined.

To update the UT tax rate in ledgers or stock items:

Open the respective ledgers or stock item in alteration mode.

Set the option Set/alter GST Details? to Yes .

In the GST Details screen, click L : Tax Rate History .

In the Tax Rate History screen, press the down arrow key to move the cursor to a new row.

Enter the Applicable From date as 01-01-2020 .

Set the column Set/Alter Tax Details? to Yes .

Enter the tax rate for Integrated Tax . Tax rates are updated for Central Tax and UT Tax automatically.

Save the changes.

10.

In the Company GST Details screen, I can enter the date for GST applicability but not the date on which Ladakh became a Union Territory. Why?

In Tally.ERP 9, 1-Jan-2020 has been set as the GST applicability date for Ladakh. This is based on the notification received for the transition date (Notification No. 62/2019 – Central Tax) of 31-Dec-2019.

Effective from 1-Jan-2020, the features and functionality supported for Ladakh will be made available. Based on the GST applicability date (on or after 1-Jan-2020), you can record GST transactions for Ladakh.

11.

When the party's State is changed from Jammu & Kashmir to Ladakh, the field GSTIN/UIN (prior to 1-Jan-2020) is blank. Why?

Based on the GSTIN/UIN, if Tally.ERP 9 determines that the GSTIN of the party was of Jammu & Kashmir (GSTIN starting with 01), then it will be pre-filled in the field GSTIN/UIN (prior to 1-Jan-2020) . If the GSTIN has not been pre-filled, check:

If the GSTIN was starting with 01

If the company is an Assessee of Other territory . In this case, it will not be pre-filled, as the format for Ladakh is not available.

12.

In case the option 'Is a transporter' is set to Yes in a party ledger, then only 1 GSTIN/UIN field appears for the State of Ladakh. The field for current GSTIN/UIN and prior GSTIN/UIN bifurcation is not appearing. Why?

Currently, there is no clarity on the implication on transporter's ID for the registrations in Jammu & Kashmir and Ladakh.

However in the case of any such change, you can specify the GSTIN/UIN in the e-Way Bill Details screen, which would be considered for transacting.

13.

I'm a registered dealer (tax payer) but I have not received the GSTIN of Ladakh as on 1-Jan-2020. What should I do?

When you had registered for GSTIN, you would have received a Temporary TIN . You can use this to record transactions and maintain data. This registration will be converted to a permanent one after the documents are processed.

14.

My business is now located in Ladakh. Can I retain the State as Jammu & Kashmir and set the option Assessee of Other Territory to Yes to calculate UT tax with effect from 1-Jan-2020?

No, you should not retain the State as Jammu & Kashmir, as there will be different registration numbers for companies in Ladakh. Also it is not advisable to continue with Jammu & Kashmir as the State when you are operating from Ladakh. However, please check with your Chartered Accountant for clarification and confirmation regarding the same.

15.

What is the purpose of the F12 configuration 'Show GSTIN/UIN (prior to 1-Jan-2020) for Jammu & Kashmir' in the Company GST Details?

This new configuration will work if the State in your company is set to Jammu & Kashmir. The existing GSTIN will continue to be valid for businesses in Jammu & Kashmir. However, if you need to apply for a new GSTIN, press F12 in Company GST Details screen, and enable this option to provide the old and new GSTIN.

If your company is in Ladakh, as per GSTN, you have to get a new registration number. Hence, enabling or disabling this option will not have any impact on the Company GST Details screen.

16.

In the Company Alteration screen, the State of my Company is set to Jammu & Kashmir. After upgrading to the latest release, can I change the State of my Company to Ladakh in the Company Alteration screen?

We recommend that you change the State of your Company to Ladakh in the Company GST Details screen from F11 > F3 . Do not change the State from the Company Alteration screen.

17.

My business was in Jammu & Kashmir, but now it is in Ladakh. Where should I update company's State to Ladakh?

Go to F11 > F3 features, and open the Company GST Details screen. Change the State to Ladakh .

18.

My business was in the State of Jammu & Kashmir, but now it is a part of Ladakh. To maintain my books of accounts, what should I do?

Currently, we recommend that you continue in the same company by changing the State name to Ladakh. On changing the State name, a warning message If the State is changed here, then your transactions, invoice printing, reports and returns will be impacted. will appear. You can press Enter to continue. You don't have to split the data. However, if you want to split the data, follow the prerequisites to avoid issues related to data split.

Here are the options you can use by referring to the associated merits and demerits.

Continue to maintain the books in the same company

Or

Create a new company

Or

Split the existing company

You can make an informed decision by referring to the details given below for Company and party master :

Options to Maintain the Company

Merits

Demerits

Continue to maintain the books in the same company

The business is now located in Jammu & Kashmir. You can enter the new GSTINs in the ledgers of parties located in Ladakh, and continue without making any changes to your company.

The business is now located in Ladakh

You need to:

Change your Company's State from Jammu & Kashmir to Ladakh .

Enter the new GSTIN applicable from 1-Jan-2020 in the Company GST Details screen.

Enter the new GSTINs in the ledgers of parties located in Ladakh.

Create a new company

The business is now located in Jammu & Kashmir. You can enter the new GSTINs in the ledgers of parties located in Ladakh, and continue without making any changes to your data.

The business is now located in Ladakh

You need to:

Create a new company by selecting the State as Ladakh and configure it as per your business needs.

Export the masters and transactions from the Jammu & Kashmir company, and import them into the new company created for Ladakh.

Enter the new GSTINs in the ledgers of parties located in Ladakh.

You need to know how to export and import the data. While importing the data, you need to treat the following with caution:

Opening balance

Duplicates (if any)

Split the existing company

The business is now located in Jammu & Kashmir. You can enter the new GSTINs in the ledgers of parties located in Ladakh, and continue without making any changes to your data.

The business is now located in Ladakh

You can split the company by providing the effective date as 1-Jan-2020. You need to:

Change the split company's State to Ladakh .

Enter the new GSTIN applicable from 1-Jan-2020 in the Company GST Details screen.

Enter the new GSTINs in the ledgers of parties located in Ladakh.

Data split has a few important pre-requisites. Before splitting the data, you need to take care of the following:

Take a backup of the data.

Ensure all unadjusted forex gains/losses have been fully adjusted by recording journal entries.

Ensure that there are no purchase/sales bills due. Check the Profit & Loss A/c and inventory statements (purchase/sales bills pending). In case of pending bills, account for them in the respective party accounts or in the bills pending account.

Check if the company data is verified using the Verify Company Data option. This is required to ensure that no errors occur while splitting the data.

When you Verify Company Data , make the necessary corrections if any of the following errors occur:

o Voucher has bank allocation details in non-banking ledgers.

o Non-banking ledger has bank reconciliation details.

o Voucher has duplicate bank allocation details.

o Incorrect ledger was selected in Bank allocation.

o Incorrect Units of measurements for an Item.

o Cost Centre does not belong to the Category.

o No Accounting Allocations.

o Voucher Totals do not match.

o Cost Break-up total does not match.

o Service tax (ST) category does not exist.

o No entries in the voucher.

Options to Use Party Master

Merits

Demerits

Change the State to Ladakh in the party master, and enter the new GSTIN.

This will be a one-time configuration, which will help in faster data entry.

Based on the new and old GSTINs of party ledgers, you will know if the party had earlier belonged to Jammu & Kashmir.

If the party does not have GST registration, you won't be able to know if the party had earlier belonged to Jammu & Kashmir, as the history of changes made will not be available in the party master.

Choose the State and enter the GSTIN every time while transacting, without making any changes in the masters.

This will help you know which party's State and GSTIN have changed, and you can change them only for the applicable parties.

In the party ledger, you will not have the history of changes made to the State and thee GSTIN.

It would be a tedious activity to change the State and GSTIN in the Party Details screen of the voucher, every time while recording transactions.

Use multiple addresses. Create a new one for Ladakh, and choose it every time while transacting.

This is an additional step in each transaction. You need to enable the Party Details screen and select the appropriate address in the voucher.