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GST – FAQ

This topic lists the important FAQ on GST, especially related to GSTR-1, unregistered dealers, HSN/SAC, tax calculations, invoicing and printing, cash discount or trade discount, GST features, GST calculation, licensing and migration, and others.

 

GST Returns

As this transaction has three natures of goods and two different party ledgers, the values cannot be bifurcated to capture against each party. Hence, you may find a mismatch in the values captured in the drill-down reports of Table 5. However, this will not affect the filing of GSTR-3B, as the appropriate values will be displayed in the relevant sections of the returns.

Currently, such transactions cannot be identified as returns or as adjustments made towards sales/purchase in debit note, credit note and journal vouchers. We will consider this requirement and provide an appropriate solution in our upcoming release.

The transactions of transport fall in the category of reverse charge. The expenses of transporting the goods is incurred by the supplier. The scenario of cash payment is a purchase transaction, and purchases will not be captured in GSTR-1. This purchase transaction will form part of section 3.1(d) of GSTR-3B.

The JSON and Excel formats for consolidated debit or credit notes are not available on the department portal. If you are using TallyPrime for filing returns, you need to link a debit or credit note against only one corresponding original invoice. If you are using TallyPrime only to record transactions and not for filing returns, you can record the debit or credit notes against multiple original invoices. While filing returns on the portal, you can manually enter the details of multiple original invoices against which the debit or credit notes were recorded.

You can press Alt+J (Accept as is), to accept the voucher as a valid transaction, and include it in the relevant tables of GSTR-1 and GSTR-3B returns.

The user-defined name entered for the ledger in TallyPrime, may or may not be the same as the trading name registered with GSTN. Also, the registered Trading Name gets auto populated under Receiver Name in the GST portal. Hence, the Receiver Name will be blank in the GSTR-1 file exported from TallyPrime.

The transactions of the party type Government Entity, was captured in Table 3.2 Supplies made to UIN holders of GSTR-3B, which is not required by the GSTN.
Such interstate transactions of taxable goods with government entity, are captured in Table 3.1 a - Outward taxable supplies (other than zero rated, nil rated and exempted) as specified by the department.
As the department has not asked for any bifurcation of transactions with party type as government Entity. All the parties which have been created earlier under, government entity will be mapped to the party type Not Applicable.

You can do the following to identify the differences.

  1. Check if any of the transactions are appearing under Uncertain Transactions (Corrections needed) of GSTR-1 or GSTR-3B, and resolve them.
  2. Check if any of the transactions are appearing under Not relevant for returns. Check those transactions and include them if relevant.
  3. Check for sales entries recorded in Receipt or Journal vouchers. These transactions are included in the GST returns, but will not form part of the Sales Register.

New natures of transactions are introduced for interstate sales made to Embassy/UN body.

  1. Interstate Sales to Embassy/UN Body Exempt
  2. Interstate Sales to Embassy/UN Body Nil Rated
  3. Interstate Sales to Embassy/UN Body Taxable
  • GSTR-1 - The relevant values of vouchers recorded with the new natures of transaction, will be captured in the following sections:
    • B2C Invoices - 4A, 4B, 4C, 6B, 6C
    • Credit/Debit Notes(Registered) - 9B
    • Nil Rated Invoices - 8A, 8B, 8C, 8D
  • GSTR-3B - The relevant values of transactions recorded with the new natures of transaction, will be captured in the following tables:
    • Taxable transactions in 3.1(a) Outward taxable supplies (other than zero rated, nil rated and exempted)
    • Exempt and nil rated transactions in 3.1(c) Other outward supplies (Nil rated, exempted)
    • Taxable transactions in 3.2 - Supplies to UIN holders

Exempt sales will get captured in table 9 (Nil Rated Invoices) in the return format view of GSTR-1.

It is required to show GST calculation in the delivery challan. A delivery challan can only be used for the transfer of stock between branches operating with the same GSTIN number within a state.
The GST details recorded in the delivery challan will not have an impact on GSTR-1.

You can view the tax-rate-wise break-up in the Summary view of GSTR-1 and GSTR-3B.

To know your GST liability and ITC, log in to the GST portal, and check your e-ledgers, that is, Liability Ledger and Credit Ledger.

In TallyPrime:

  • To view GST liability, Gateway of Tally > Display More Reports > Statutory Reports > GST Reports > GSTR-1.
    Alternatively, press Alt+G (Go To) > type or select GSTR-1 > and press Enter.
  • And, to view the ITC, Gateway of Tally > Display More Reports > Statutory Reports > GST Reports > GSTR-2.
    Alternatively, press Alt+G (Go To) > type or select GSTR-2> and press Enter.
    Or
  • Gateway of Tally > Display More Reports > Account Books > Ledger.
    Alternatively, press Alt+G (Go To) > type or select Ledger Voucher > and press Enter.
  • Select the GST ledger. In the Ledger Vouchers report, the debit balance displays the ITC. And the credit balance displays the tax liability.
    Or
  • Gateway of Tally > Display More Reports> Account Books > Group Summary > type or select Duties & Taxes.
    Alternatively, press Alt+G (Go To) > type or select Group Summary > type or select Duties & Taxes > and press Enter.
  • The debit and credit balances of GST ledgers appear in the Group Summary.

When debit notes and credit notes are recorded against B2C(Large) Invoices - 5A, 5B for unregistered dealers or consumers, they will appear in Credit/Debit Notes (Unregistered) - 9B in GSTR-1. Debit notes and credit notes recorded against B2C(Small) Invoices - 7 will not appear here. They will appear with negative values in the same table.

 

GST Invoicing and Printing

We understand that this is a requirement for your business, since you operate with such a customer base. We have noted this requirement, and we are working to provide resolution for this in our upcoming release.

As per the Corrigendum to the Circular No. 76/50/2018-GST, the TCS value will not be considered for GST calculation. You can record sales with GST and TCS ledgers, as both the values will be calculated based on the details set in the respective masters.

Check if the option Appropriate tax values in purchase invoice is enabled in GST ledgers. If this option is enabled, the purchases recorded using such ledgers will not appear in the GST Ledger Vouchers report.

In the item invoice mode of sale invoice, press F12 (Configure) > set the option Provide Cash/Trade Discount to No. If you do not see this option, set Show more configurations to Yes.

No. It is not mandatory to print the date and time of the removal of goods in the GST invoices.

TallyPrime, the invoice formats have been enhanced for GST. The invoice formats currently supported are Tax invoice, Bill of Supply, and Advanced Receipts.

If the method of voucher numbering is set to Automatic, then duplication of the invoice number might occur if you delete invoices. For GST transactions, unique voucher numbers have to be used for all your vouchers. Therefore, we recommend that Automatic (Manual Override) should be set as the method of voucher numbering, which will ensure that unique voucher numbers are set for your vouchers.

Yes. Exempted/Nil-rated and Taxable goods can be part of the same bill; once recorded, the total invoice value will appear in B2B Invoices - 4A, 4B, 4C, 6B, 6C table of GSTR-1 report. It will also form part of the HSN wise Summary. However, if you bill exempted/nil rated goods separately, they will appear in the Nil Rated Invoices - 8A, 8B, 8C, 8D table.

If you want to capture the values of only the taxable items as a B2B invoice, as per GST rules record separate invoices for taxable items. Use separate invoices (bill of supply) for sales of exempt/nil rated items.

In a single invoice, select the stock items attracting different GST rates, and then select the tax ledgers.
Press Ctrl+I (More Details) > select Voucher under Details of > type or select GST - Tax Analysis. To display the GST - Tax Analysis screen for each of the stock items selected in the invoice. Refer to Recording Local GST Sales for more information.

  1. Ensure that the date of your transaction is on or after 1 July 2017.
  2. Select the tax ledgers individually while recording a transaction. Alternatively, create a voucher class to automate the calculation of the GST rates. Refer to Using Voucher Class for Auto Calculating GST in Vouchers for more information.
  3. Ensure that you have selected the state of the party in the party master, or in the Party Details screen while recording a transaction. Refer to Calculating GST in Invoices.

  • Ensure that the date of your transaction is on or after 1 July 2017.
  • Select the tax ledger while recording a transaction. Alternatively, create a voucher class to automate the calculation of the GST rates. Refer to Using Voucher Class for Auto Calculating GST in Vouchers for more information.
  • Ensure that Integrated Tax is selected as the Tax type in the tax ledger selected in the invoice.
  • Ensure that the state of the party in the party master, or in the Party Details screen of the invoice is different from the state selected in the company master. Refer to Calculating GST in Invoices.

GST amount appears based on the tax defined in the masters, in the following order:

  • GST classification when linked to accounts and inventory masters
  • Ledger
  • Account Group
  • Stock Item
  • Stock Group
  • Company

Ensure you select the ledgers, and stock items predefined with the required GST rates. You can also define the required GST rate in the invoice.

You can remove the GST rates from the Tax Rate History of the GST Details screen in the stock item master.
To remove the GST rates

  • In the Stock Item Alteration screen, enable Set/Alter GST Details.
  • In the GST Details screen, press Alt+W (Details), to view Tax Rate History and remove the date using Spacebar, and save.

You can record a journal voucher for increase in the tax liability, and tax credit when you purchase from unregistered dealers. For this, you need to debit and credit the same tax ledgers by entering the tax values. Report this transaction to the department as a self-invoice.

 

GST Features and Tax Calculations

You can create multiple addresses for one customer in TallyPrime, and update all the GSTINs of that customer along with the corresponding address.

You can have only one GSTIN per company. If you have multiple GSTINs, you need to create multiple companies in TallyPrime.

Press F11 (Features) > enable the options Maintain Accounts and Enable Goods and Service Tax (GST).

Common GST tax ledger cannot be used for all GST tax types (Central Tax, State Tax, Integrated Tax, and Cess). Each tax type has to be separately accounted for, which will lead to the following benefits:

  • It will help in the payment of tax under separate tax type heads as required by GSTN.
  • It will help in availing input tax credit for each tax type.
  • It will help the government in ascertaining the revenue for each tax type, which will enable smooth revenue-sharing mechanism.

There is no separate process for claiming ITC for the purchase of capital goods. The tax paid on the purchase of capital goods is added to the e-credit ledger, which can be used for input credit at any time.

The tax paid on procuring certain services and goods is not eligible for input credit. Services such as renting of motor cab, supply of tour operator services and items that are used in manufacturing of exempt goods fall under this ineligible for input credit category. You can not claim credit for tax paid for these items.
In TallyPrime you can set goods or services as ineligible for input credit by enabling the option Is ineligible for input credit to Yes in the GST Details screen of the item master or purchase ledger. This option can be activated by enabling Set ineligible input credit to Yes under F12 (Configure).

Auto calculation will happen when you create a voucher class with central tax/state tax/integrated tax as a default additional ledger.

GST is not applicable on free supplies or samples.
In TallyPrime, enable the option Use separate Actual and Billed Quantity columns in invoices under F11 (Features). Now, enter separate billed quantity and actual quantity including the quantity of free supplies/samples while recording the transactions. The value of invoice will be based on billed quantity and quantity of free supplies/samples will be added at zero value.
In case a separate invoice is created for free supplies/samples, record the invoice with zero value.

 

HSN/SAC for GST

The total of the assessable value and the tax amount appears as the Total Value in HSN/SAC Summary. It does not include the values of additional ledgers not enabled for GST.
The Invoice Amount in the GSTR-1 return format view considers the assessable value and the tax amount, along with additional ledgers not enabled for GST. Hence, the Total Value in HSN/SAC Summary will not match the Invoice Amount in the GSTR-1 return format.

You have to provide HSN code in each company individually, in one of the following ways:

  • Enter the HSN code in the GST Details screen at the company level.
  • Gateway of Tally > Display More Reports > Statutory Reports > GST Reports> GST Rate Setup.
    Alternatively, press Alt+G (Go To) > GST Rate Setup > and press Enter.
  • Enter the HSN code in the GST Rate Setup screen.

 

Recording Transactions under GST

Expenses incurred for the furtherance of business, such as rent (commercial), telephone bill, stationery and so on, can be claimed under GST by recording them as purchases and not as expenses. To record such purchases, create a party ledger (party from whom such goods are procured) and ensure that GSTIN of the party is updated in the ledger. When the supplier uploads his GSTR-1, the details will appear in your GSTR-2A.

Create new ledgers for purchases, sales, expenses and incomes by setting the option Is GST Applicable to No, and use them in the invoices. Click here for procedure to record such transactions.

You can create ledgers named as e-Cash, e-Credit, and e-Liability in TallyPrime. You can maintain these ledgers separately for GST.

This happens automatically in TallyPrime. There is no provision to capture input credit in GSTR-1. You can check the available input tax credit in GSTR-3B by logging in to GSTIN portal. In TallyPrime, check the closing balance of ledgers created under Duties & Taxes. If there is input tax to be availed the tax ledgers will show a debit balance.

Enable GST in the company. In the Ledger Creation screen,

If you are not sure about the registration type of your party while creating or updating the party master, you can select Unknown as the registration type in the party ledger.
You can update the details later by altering the party ledger. If you want to update the details of multiple parties, you can conveniently do so from the Update Party GSTIN/UIN report. If such parties are part of taxable transactions, ensure that you update the details before filing the final returns.

No, the values of duties and taxes are not displayed in Profit and Loss A/c. The consolidated value of all duties and taxes is displayed in Balance Sheet under Current Liabilities. To view ledger-wise value of each tax type, drill down by selecting Duties & Taxes in Balance Sheet.

You have to create a separate company for each registration obtained under GST for the branch offices, and maintain your data.

Consignment sales is similar to other sales under GST. You can record the sales invoice with GST ledgers (if it is taxable), and record a tax payment voucher to pay tax.

Under the GST regime, stock transfer to a godown or to an entity with a different GSTIN registration is considered taxable supply. Hence, if stock is transferred to a godown of the same organisation, it is recorded as a transfer if the godown is operating under the same GSTIN. In case the godown has a different GSTIN, it is recorded as an taxable outward supply. You can record transfers using delivery note or material out voucher types, and taxable outward supplies using sales vouchers in TallyPrime.
In case of supply to a godown outside the state, it is recorded as a taxable outward supply, since the same GSTIN cannot be used for business operations in two different states.

Works contract is treated as a service under GST. The works contract purchases and sales have to be recorded as taxable purchases and sales. Based on the State in which the party is located, you can select the taxable Nature of transactions provided for sales and purchases, and the GST ledgers in the invoice.

You can manage your job work entries using the existing features of job work in TallyPrime. When the GST rules related to job work are finalised, necessary changes will be incorporated, and made available in TallyPrime.

In TallyPrime and later versions, recording inclusive-of-tax transaction is simplified. Earlier you had to create a voucher class with inclusive-of-tax percentages to record inclusive-of-tax transactions.
Now, this can be done by enabling the option Provide Rate Inclusive of Tax for Stock Items under F12 (Configure) in sales invoice.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press F12 (Configure) and enable the option Provide Rate Inclusive of Tax for Stock Item.
    The column Rate (Incl. of Tax) appears in the invoice.
    Rate (incl. of Tax): Enter the rate of the item including tax in this column. The actual rate will appear in the Rate column. The tax amount will appear automatically on selecting the tax ledgers.

The actual tax liability and input credit for your business will be available in GSTR-3B on the GSTN portal.
In TallyPrime, the tax liability based on the transactions recorded can be ascertained from GSTR-1. In the summary view, the Total Tax Amount in the Total Outward Supplies section is the tax liability of your business for the period.

 

Common Queries About GST

  • GST would be applicable on the supply of goods or services as against the present concept of tax on the manufacture and sale of goods or services.
  • GST would be a destination-based tax as against the present concept of origin-based tax.
  • The list of exempted goods and services would be kept to a minimum and harmonized for the Centre and the States as far as possible.
  • Exports would be zero-rated.
  • IGST credit to be fully utilized before using credit of CGST or SGST for tax payments.
  • Credit of CGST paid on inputs may be used only for paying CGST on the output. Credit of SGST paid on inputs may be used only for paying SGST on the output.

Effective from 1st February 2019, IGST credit has to be fully utilized before using CGST or SGST credits for tax payments.
Prior to the amendment in the GST Act, input tax credit was allowed to be adjusted against GST liability in the order shown below:

Input tax credit

Set off against tax liability

CGST

CGST and IGST (in this order)

SGST

SGST and IGST(in this order)

IGST

IGST, CGST, and SGST(in this order)

For detailed information, refer to How to Set Off Input Tax Credit Against Tax Liability in the GST Regime.

IGST is applicable on the goods and services if the buyer's state is different from your business location. Consignee in such cases may be in a different location where the goods can be delivered. Refer to Interstate sales for more information on calculating IGST.

The regular dealer needs to file GSTR-1, GSTR-3B and GSTR-9 annual return. The composite dealer needs to file GST CMP-08 and GSTR-4 annual return.

You can find the chapter-wise-rate-wise GST rate schedule for goods and services on the website: http://www.cbec.gov.in/htdocs-cbec/gst/index. Alternatively, contact your CA/business consultant for more details.

GSTIN is a 15-digit unique registration number provided to a taxpayer upon successful registration of his business details on the GST portal.
The following table lists the state-wise code used in generating the GSTIN:

State/UT code

State or Union Territory

State/UT code

State or Union Territory

State/UT code

State or Union Territory

State/UT code

State or Union Territory

01

Jammu & Kashmir

11

Sikkim

21

Odisha

33

Tamil Nadu

02

Himachal Pradesh

12

Arunachal Pradesh

22

Chhattisgarh

34

Pondicherry

03

Punjab

13

Nagaland

23

Madhya Pradesh

35

Andaman and Nicobar Islands

04

Chandigarh

14

Manipur

24

Gujarat

36

Telangana

05

Uttarakhand

15

Mizoram

26

Dadra and Nagar Haveli and Daman and Diu

37

Andhra Pradesh

06

Haryana

16

Tripura

27

Maharashtra

38

Ladakh

07

Delhi

17

Meghalaya

29

Karnataka

 

 

08

Rajasthan

18

Assam

30

Goa

 

 

09

Uttar Pradesh

19

West Bengal

31

Lakshadweep

 

 

10

Bihar

20

Jharkhand

32

Kerala

 

 

 

The following lists the taxes that will be replaced by GST:

Taxes replaced by GST at the centre

Taxes replaced by GST at the state

Taxes not covered under GST

Central Excise duty

State VAT

Alcohol for human consumption

Duties of Excise (Medicinal and Toilet Preparations)

Central Sales Tax

Electricity

Additional Duties of Excise (Goods of Special Importance)

Purchase Tax

Sale/purchase of Real Estate

Additional Duties of Excise (Textiles and Textile Products)

Luxury Tax

Five specified petroleum products (to be brought under GST later on recommendation of GSTC)

Additional Duties of Customs (commonly known as CVD)

Entry Tax (All forms)

Tobacco Products

Special Additional Duty of Customs (SAD)

Entertainment Tax (except those levied by the local bodies)

 

Service Tax

Taxes on advertisements

 

Cesses and surcharges, when they are related to supply of goods or services

Taxes on lotteries, betting and gambling

 

 

State cesses and surcharges insofar as far as they relate to supply of goods or services

 

 

All goods and services are likely to be covered under GST except the following:

  • Alcohol for human consumption
  • Electricity
  • Sale/purchase of Real Estate
  • Five specified petroleum products (to be brought under GST later on recommendation of GSTC)
  • Tobacco products

Imports of goods and services are treated as inter-state supplies and therefore IGST will be levied on the import. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will be accrued to the State where the imported goods and services are consumed. Full and complete set-off will be available on the GST paid on import on goods and services.
In general, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on you as the recipient under the reverse charge mechanism. Please note that import purchases will be captured in GSTR-3B in Column 5 - Goods/capital goods received from overseas (Import of goods).
For more information, you can refer to the linked document.

GST training has already been scheduled for all registered Tally Educational Institutes, and a PPT document on GST has been shared accordingly. The recorded webinar videos are also available on our blog for GST at http://blogs.tallysolutions.com/gst-webinars/.

 

The GST workshop or awareness camp is scheduled for customers, partners, and students. For details of the venue and date, visit our blog post.

It is assumed that all existing Central Excise taxpayers are registered under State VAT Department. All existing taxpayers and VAT dealers will be given a provisional ID and password by the state VAT authority. Create your username and password at the GST common portal using this provisional ID and password.

Customers can join the Upcoming Webinars to know more about GST. Alternatively, contact your partners for a product demo, if needed.
Partners can contact their Business manager or Region Sales Manager for more details on the scheduled training in their location.

CPIN - Common Portal Identification Number is generated along with the GST payment challan. It is a 14 digit unique number to identify the challan. The CPIN is valid for 15 days.
CIN - Challan Identification Number is a 17-digit number consisting of a 14-digit CPIN plus a 3-digit bank code. CIN is generated by the authorised banks/RBI when payment is actually received and credited to the department. CIN is communicated to the taxpayer as well as the department after the payment of GST.

Under the GST regime, input tax credit can be availed by every registered taxable person on all inputs used or intended to be used in the course of or for furtherance of business. However, claiming ITC is subject to certain conditions:

B2C large invoices

B2C small invoices

The value of the interstate sales transaction is greater than or equal to Rs. 2.5 Lakh.

The value of the interstate sales transaction is less than Rs. 2.5 Lakh.

Also includes local sales irrespective of the value of the transaction.

To know more, refer B2C description in GSTR-1 and Recording B2C invoices in TallyPrime.

Refer to our blog for detailed information.

You need to maintain unique sequential voucher numbers for your sales invoices under GST. You can use the voucher numbering feature in TallyPrime to set the voucher number which has to be unique and sequential, based on your business needs.

 

You need not maintain separate voucher types for sales to registered and unregistered dealers. And, you need to maintain unique sequential voucher numbers for all your sales invoices under GST.

Until 31st March 2021, if your turnover is:

  • Upto Rs. 1.50 Crores - Need not print HSN code in your invoice.
  • From Rs. 1.50 to 5 Crores - Print 2 digits of HSN code in your invoice.
  • More than Rs. 5 Crores - Print 4 digits of HSN code in your invoice.

Effective from 1st April 2021, if your turnover is:

  •  Upto Rs. 5 Crores - Print 4 digits of HSN code in your invoice.
  • More than Rs. 5 Crores - Print 6 digits of HSN code in your invoice.

The tax should be charged based on forward charge even if the service is categorized under reverse charge.

There is no such condition for availing input credit. You can avail input tax credit on the day of booking expense, even if the payment to the service provider or department is not made.

The recipient should insist for a valid invoice. The invoice should have details of tax details (tax analysis), which is not added to the invoice value, with an indication that the invoice is under reverse charge.

Fully exempt supply does not qualify for input tax credit.

Interstate purchase from unregistered dealer is not allowed, other than for handicraft and raw cotton.

The assessees registered as Goods Transport Agency (GTA) should file GSTR-1 returns by marking the Invoice Type as Reverse Charge.

As GTA is listed under reverse charge supplies, the liability or tax credit is also under reverse charge. If the supply is being made to unregistered dealer, it attracts forward charge.

 

 

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