Generating Form ER 1 (Excise for Manufacturer)
Form ER 1 is a monthly return for production, removal of goods, other relevant particulars and CENVAT Credit. All the Excise Manufacturing (Regular/Large Tax payer) Units should file returns in Form ER 1. Form ER 1 is an excise unit wise report. This report provides complete information on the assessable value of all clearances, CENVAT credit availed and utilized, balance duty payable and the duty paid for a particular month.
The report can be drilled down to the voucher entry level to display complete information of each transaction.
To generate the Form ER1 in TallyPrime
- Go to Gateway of Tally > Display More Reports > Statutory Reports > Central Excise Reports > Manufacturer > Form ER 1.
Alternatively, press Alt+G (Go To) > type or select Form ER 1.
- Press Alt+F5 (Detailed). Form ER1 appears as shown below:
This displays the total number of transactions which are considered for Form ER 1 and linked to the selected excise unit. The following vouchers will be displayed:
- Excise Purchase
- Excise Sales
- Supplementary Invoices for Purchase and Sales transactions
- Excise Credit Note
- Excise Debit Note
- Manufacturing Journal
- Excise Stock Journal
- Journal vouchers
This displays the total number of transactions which are not linked to the selected excise unit and are not part of Form ER 1. The following vouchers will be displayed:
- Transactions which belong to other excise units.
- Contra vouchers
- Inventory voucher such as Physical Stock, Rejections In, Rejections Out, Delivery Note, Receipt Note and Material In and Material Out.
- Order vouchers such as Sales Order, Purchase Order, Job Work In, and Job Work Out.
- Payroll vouchers such as Payroll and Attendance vouchers.
- Vouchers which are manually excluded by users.
- Voucher excluded due to non-excise implications.
- Non-accounting vouchers such as reversing journal, optional voucher, and memorandum vouchers.
- Cancelled vouchers
It displays the complete list of information gaps found in transactions. Until these details are specified, either in masters or transactions, the transaction cannot be considered for filing return. It consists of two broad categories,
- Master Related Exceptions
- Transactions Related Exceptions
All the transactions which are displayed here requires user’s intervention to provide the appropriate details. Provision to completely exclude uncertain transactions is also available. Hence, any transaction which has information gaps but is not required to be shown in the quarterly return, can be moved to Excluded Transactions.
The computation section provides an overview of CENVAT Credit availed, utilised, balance duty payable and paid. Summarised details in terms of values and voucher count of all the transactions captured in the Included Transactions of Statistics of Vouchers will be displayed here. The transactions categorised as excluded and uncertain will not be considered for computation.
The assessable value and duty amount of clearances recorded using excise sales invoice appears here. When the report is viewed in detailed mode, the break-up of assessable value and duty payable on goods cleared will be categorised as given below:
- Home Clearance with nature of removal as Captive Consumption, Domestic, Special Rate and Exempt
- SEZ /Bond
CENVAT Credit Availed
The amount of credit availed on goods received into the excise unit appears here. When the report is viewed in detailed mode, the break-up of credit availed will be categorised and displayed as given below:
- Opening Balance: The CENVAT Credit closing balance of previous return period appears here. In case of new data, the opening balance entered for CENVAT credit ledger master or the value of journal voucher recorded to account for opening balance appears here.
- Credit on Inputs: The total amount of CENVAT credit availed by recording transactions in excise purchase invoice, excise debit note and journal voucher recorded with the following nature of purchase appear here.
- First Stage Dealer
- Second Stage Dealer
- Credit on Capital Goods: The total amount of CENVAT credit availed on capital goods through excise debit note and journal voucher using the relevant flag and excise purchase appears here.
- Credit on Input Services: The total value of adjustment entries recorded with the flag Credit on Tax on Services on receiving credit from service tax transactions appears here.
- Credit under Rule 12BB: The total value of adjustment entries recorded with the journal flag Adjustment under 12BB – Credit appears here.
- Credit under Rule 10A: The total value of adjustment entries recorded with the journal flag Credit under Rule 10A appears here.
CENVAT Credit Utilised
The CENVAT Credit utilised from the credit availed considering the payment of duty and other adjustments, will be displayed here.
Payment of Duty on Goods
The values of adjustment entries recorded using the journal flag CENVAT Adjustment to offset the liability with the available CENVAT Credit appears here.
The total of CENVAT credit utilised by recording the following adjustment entries appears here.
- Removal as Such: The total value CENVAT Credit utilised on removing the following Stock Item Types from excise unit without further processing appears here.
- Principal inputs removed as purchase returns and sales
- Finished goods received as sales returns removed as sales
- Rule 6 Payments: The total values of all adjustment entries recorded with the flag Adjustment under Rules 6 to reverse the CENVAT Credit availed on the principal inputs used in the manufacture of exempted goods appears here.
- Tax on Services: The total values of all journal adjustment entries recorded to transfer the credit from excise books to service tax books appears here.
- Inter Unit Transfer under Rule 10A: The values of all adjustment entries recorded to transfer the credit from one excise unit to another using the journal flag ADC_LVD_CT_75 appears here.
- Other Payments: The values of all adjustment entries recorded with the journal flag Adjustment towards Other Payments appears here.
The Balance CENVAT Credit Available displays the amount computed by deducting the CENVAT Credit Utilised from the CENVAT Credit Availed appears as. The Duty Payable after CENVAT Adjustment displays the duty liability computed by deducting the Balance CENVAT Credit Available from the total Duty Payable amount.
A separate section is provided to capture the count of all vouchers recorded for excise payments irrespective of the period selected to generate Form ER 1. In this section, Included Transactions row displays the count of all payment vouchers recorded for payment of excise duty, arrears, interest and miscellaneous dues to the department. The Not Included Transactions row displays the count of excise payment vouchers recorded for a different return period.
Note: Payment vouchers will be displayed in the Excluded Transactions row of Statistics of Vouchers.
The total value of the following payment transactions are displayed here.
- Payment of excise duty
- The amount of excess payment made during the previous period carried forward to the current period
The Balance Duty Payable row displays the amount calculated by deducting the Duty Payment made from the Duty Payable after CENVAT Adjustment.
The total value of payment vouchers recorded for payment made towards arrears, interest and miscellaneous dues for the current period are displayed here.