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

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.

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.

4.

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.

5.

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.

6.

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.

7.

I had placed an order with my supplier on 31-Dec-2019, but the goods were delivered on 1-Jan-2020. How do I record this transaction?

Currently, the assumption is to consider the date on which the goods have been delivered. As per this assumption, if you have recorded the voucher for intra-state transaction on 1-Jan-2020:

● The new GSTIN/UIN defined for the State of Jammu & Kashmir and Ladakh will appear in the respective fields of the invoice.

● CGST and SGST will be calculated for the State of Jammu & Kashmir.

● CGST and UT Tax will be calculated for the State of Ladakh.

8.

I have recorded sales prior to 1-Jan-2020, against which sales returns have happened from 1-Jan-2020. Should I charge State Tax (considering it as Jammu & Kashmir) or UT Tax (for Ladakh)?

As there is no rule available on this, it is assumed to be taxable as per the tax type applicable on the date of sales returns. Based on this assumption, the tax will be calculated as per the applicability of State tax or UT tax on the date of sales returns.

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, Tally.ERP 9 Release 6.5.5 will not automatically update this information. 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.

Why are the GST and VAT reports of Ladakh appearing the same as that of Jammu & Kashmir?

Currently, to provide a view of the GST and VAT reports, the existing reports of Jammu & Kashmir are retained for Ladakh. Once we get a notification from the department regarding the reports to be supported for Ladakh, we will update the same in the product.

12.

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.

13.

I have raised an order prior to 1-Jan-2020 for a party located in Jammu & Kashmir, and charged CGST and SGST. The party now belongs to Ladakh, and the invoice is raised against the order after 1-Jan-2020. Why is the party's State and GSTIN not getting updated based on the date, as I need to charge IGST on this transaction?

When you select an order number in the invoice, only the order details will be pre-filled. The required changes have to be manually done in the invoice.

Note: Similarly, when you duplicate an invoice, you need to manually change the details in the duplicated invoice.

14.

On upgrading to Releases 6.5.5, which supports changes related to Jammu & Kashmir and Ladakh, I see that the details in the reports have changed. The transactions which were earlier included in GST reports are now appearing under Incomplete/Mismatch in information (to be resolved). How to resolve these exceptions?

These exceptions appears for taxpayers in the State of Jammu & Kashmir for their previous returns (prior to 31-Dec-2019). We are working on the reports and returns for Jammu & Kashmir and Ladakh, and a resolution will be available in our upcoming releases.

If you need to submit the GST reports urgently, follow one of the methods given below:

Method 1: Split the company

You can split the company by providing the effective date as 1-Jan-2020. With this, you can maintain separate companies for 2 separate registrations. You can maintain one registration for the first company until 31-Dec-2019, and the second registration from 1-Jan-2020.

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

By doing this, you can use the appropriate data to file the returns until 31-Dec-2019, and from 1-Jan-2020.

Method 2: Create a new company

You can create a new company from 1-Jan-2020 to maintain separate data for 2 separate registrations that you possess. You can export the necessary masters from the old company and import them into the new company, as per your business needs.

By doing this, you can use the appropriate data to file the returns until 31-Dec-2019, and from 1-Jan-2020.

Method 3: Continue with the same company

● Take a backup of the company data.

● Install the latest release on a separate folder.

● Ensure that both the releases - earlier as well as the latest - are updated with the license.

● Use Release 6.5.4 to file the returns until 31-Dec-2019.

● Use the latest Release 6.5.5 to transact for Jammu & Kashmir and Ladakh with the same company data.

If you do not want to follow any of the above methods, please bear with us until our upcoming releases. We will get the release for Jammu & Kashmir ready, which will take care of the returns and reports also.

15.

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.

16.

How to change the tax rate using GST Rate setup?

Refer to the topic on GST Rate Setup for details.

17.

How do I transfer State Tax amount from Jammu & Kashmir to UT Tax amount for Ladakh?

In the Company having GST applicability for Ladakh , record a journal voucher with the following steps:

● Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

● Debit the UT Tax ledger, and enter the amount that needs to be transferred from the State Tax ledger.

● Credit the State Tax ledger. The amount will appear automatically.

● Accept the journal voucher.

Note: Do not select any Nature of adjustments or Additional Details .

18.

I'm a 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.

19.

In case of e-Way Bill, will the functionality supported for other States hold good for Ladakh? Also, will the rules provided in the e-Way Bill portal apply for Ladakh?

Currently you can use the e-Way Bill feature provided in Tally.ERP 9. We have requested the concerned authorities to provide clarification regarding the e-Way Bill portal, and we are awaiting the response.

20.

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.

21.

What about the GST reports for Ladakh?

The GSTR-1 and GSTR-3B reports provided in Tally.ERP 9 hold good. However, please bear with us while we get the release ready for Ladakh. The upcoming releases will take care of the returns and reports also.

22.

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.

23.

In the Company Alteration screen, the State of my Company is set to Jammu & Kashmir. After upgrading to Release 6.5.5, 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.

24.

Can I record back dated or new transactions for Jammu & Kashmir after changing the State to Ladakh in the Company GST Details? Will such transactions form part of GSTR-1 and GSTR-3B for Jammu & Kashmir and Ladakh?

We have taken utmost care to ensure that your transactions continue uninterrupted after transition from Jammu & Kashmir to Ladakh. You need to update certain information in ledgers (party State, GSTIN, and so on) and stock items (State name in MRP details, tax rates with effective dates and so on) to handle your transaction requirements in the same company itself.

We are working on the returns and reports of Jammu & Kashmir and Ladakh. These will be made available in our upcoming releases. However, when the returns and reports are supported, we will ensure that they capture the appropriate details until 31-Dec-2019 and from 1-Jan-2020.

The return filing dates for November 2019, December 2019 and January of 2020 are still awaited. If you want to view the returns and reports for data prior to 1-Jan-2020, we recommend that you take a backup of your existing data, and then install Release 6.5.5 in a separate folder. When you want to view the GST reports up to 31-Dec-2019, view the same in Release 6.5.4 or earlier. You can do this until we support the returns and reports for Jammu & Kashmir and Ladakh.

Considering all this, you don't have to create a new company after the transition. However, if you wish to start in a fresh company and therefore want to split your data for Jammu & Kashmir and Ladakh, you can do so after following a few prerequisites related to data split.

25.

My business is 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 .

26.

When I upload the JSON files of GSTR-1 generated from Tally.ERP 9 for any period until Dec 2019, I'm getting an error regarding invalid GSTIN. How to resolve this?

Cause

This problem may occur due to the following reasons:

● The specified GSTIN is blacklisted or incorrect.

● The State defined for party ledger was changed from Jammu & Kashmir to Ladakh along with the GSTIN. As on 1-Jan-2020, the State code was updated from 01 (of Jammu & Kashmir) to 38 (of Ladakh).

Solution

The scenarios with the corresponding solutions are given below:

● If the GSTIN is incorrect, get the correct GSTIN from your party. Enter it in the party ledger and transactions.

● If the GSTIN is blacklisted, you can convert the transaction to a B2C transaction and then upload it to the GST portal.

● In the party ledger, if you have selected the State as Ladakh and entered the GSTIN starting with 38, follow the steps given below:

o Export the GSTR-1 return in Excel (Spreadsheet) or CSV format.

o In the MS Excel or CSV files, search for GSTINs starting with 38, and replace them with the old GSTINs.

o Import the MS Excel or CSV files into the GST Offline tool and generate the JSON file.

o Upload this JSON file to the GST portal.

Please follow the steps given above until we get the release ready for Ladakh. The upcoming releases will take care of the returns and reports also.

27.

I have updated the new GSTIN of Ladakh in the Company GST Details screen. While uploading JSON files of GSTR-1 and GSTR-3B generated from Tally.ERP 9, I'm getting an error regarding invalid GSTIN. How to resolve this?

Cause

This problem occurs when you had updated new GSTINs (applicable from 1-Jan-2020) in the Company GST Details screen.

The new GSTIN of the company will appear in JSON files of GSTR-1 and GSTR-3B generated till December 2019.

Solution

We recommend that you follow the steps given below:

● Export the GSTR-1 and GSTR-3B returns in Excel (Spreadsheet) or CSV format.

● Import the MS Excel or CSV files into the GST Offline tool and generate the JSON file.

● Upload this JSON file to the GST portal.

Please follow the steps given above until we get the release ready for Ladakh. The upcoming releases will take care of the returns and reports also.

28.

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 :