https://help.tallysolutions.com/docs/te9rel66/faqs/gstr1-with-section7-supplies.htm

GSTR-1 Returns With Supplies Under Section 7 of IGST Act

GST Department requires the dealers to provide details of invoices for supplies under section 7 of IGST act in GSTR-1 returns. When goods are transported to a place outside India, the destination of the goods becomes the place of supply for such goods. Therefore, such supplies (of goods outside India) will be treated as interstate and attract Integrated Tax, as per Notification No. 01/2019 IGST, irrespective of the location of buyer.

For example: If courier agency and sender of courier are both located in Karnataka (local) but if the courier is sent to a destination outside of India then IGST is to be charged.

In order to support the supplies under section 7 details GSTN has made changes in the GST portal, GSTR-1 return templates (Excel Ver 1.6 and CSV) and GST offline tool. The supplies under section 7 information needs to be sent as part of B2B and B2CL sections of GSTR-1 returns.

Tally.ERP 9 will be ready to export GSTR-1 in this new template format in upcoming release. However, you can use the current release of Tally.ERP 9 to file GSTR-1 return with this change before the product is made available by making some changes manually in the exported GSTR-1 return excel or csv file.

There are 4 steps you have to follow to file GSTR-1 returns by exporting details from Tally.ERP 9 rel 6.6.2 or earlier versions.

Step 1 : Record sales transaction for export services provided to a local party and charge IGST.

The nature of transaction Sales Taxable is applied in the invoice you should override the classification or nature of transaction as Interstate Sales Taxable and charge IGST as per supplies under section 7 of IGST act.

Since the nature of transaction is altered these invoices are grouped under transactions with exceptions in the GSTR returns (GSTR-1, GSTR-3B and Annual Computation report).

The process to record these transactions is given here .

Step 2 : Include all the supplies under section 7 transactions in the returns by accepting them as is in GSTR-1 returns (do the same in GSTR-3B and Annual Computation report).

The invoices in which nature of transaction is altered are grouped as exceptions and not included in GSTR-1 returns (also in GSTR-3B and Annual Computation report). You can include them in returns by accepting the exception as in the GSTR-1 report (do the same in GSTR-3B and Annual Computation report).

The process to accept transactions as is to include them in the returns is described here .

Step 3 : Export GSTR-1 return in Excel or CSV format.

Resolve all the exceptions in the GSTR-1 report, finalise the returns by checking the taxable and tax values for the month and export GSTR-1 return in excel or CSV format.

The process to export GSTR-1 return in MS Excel or CSV format to file returns using offline tool is described here .

Step 4 : Modify the return file exported from Tally.ERP9 as per Ver 1.6 return template by including information related to supplies under section 7 (depending of the file type exported from Tally.ERP 9 - Excel or CSV follow the respective procedure given below).

Modify the MS Excel file exported from Tally.ERP 9

1. Open the GSTR-1 MS Excel file - GSTR-1_ 27XXXXXXXXX1Z4 _May_2020-21.xls exported from Tally. ERP 9.

2. Open the b2b sheet.

3. Identify the transaction under section 7 of IGST Act and change the value captured in Invoice Type column to Supplies covered under section 7 of IGST Act .

4. Save the changes.

5. Open b2cl sheet.

6. Change the title of the column from Sale from Bonded WH to Supplies covered under section 7 of IGST Act .

7. Identify the transactions under section 7 of IGST Act and change the value captured in the Supplies covered under section 7 of IGST Act column for these to Y .

8. Save the changes.

9. Import the modified file in to GSTR-1 Offline tool Ver 2.3.2.

10. Generate JSON file from the offline tool.

11. Login to GSTN portal and upload the JSON file.

Modify the CSV files exported from Tally.ERP 9

1. Open the GSTR-1 B2B Invoices_4A_4B_4C_6B_6C.csv file exported from Tally. ERP 9.

2. Identify the transactions under section 7 of IGST act and change value captures in the Invoice Type column to Supplies covered under section 7 of IGST Act .

3. Save the changes.

4. Open B2C Large Invoices_5A_5B.csv file exported from Tally.ERP 9.

5. Change the title of the column from Sale from Bonded WH to Supplies covered under section 7 of IGST Act .

6. Identify the transactions under section 7 of IGST Act and change value captured in the Supplies covered under section 7 of IGST Act column for these to Y .

7. Save the changes.

8. Import the modified CSV files in to GSTR-1 Offline tool Ver 2.3.2.

9. Generate JSON file from the offline tool.

10. Login to GSTN portal and upload the JSON file.