GST Set up for Composition Dealer in Tally

GST Set up in Tally

We all have learned about the operational details of Accounting with Tally, for organizations to which GST is not applicable. We now discuss about Accounting for GST, for organsiations registered under GST rules.

First, activate GST for organisation registered under GST rules, in Tally system. You should set up GST for only for such Company, in which GST is applicable. For example, if you have created 3 Companies in Tally. First Business Company for your business in which GST is applicable. Second Business Company in which GST is not applicable, and a third Personal Accounts Company in which GST is not applicable, then you do not need to set up GST only for First Company in which GST is applicable, but need not set up GST for 2nd & third Company for which GST is not applicable.

Now, we discuss about the exclusive additional points regrading activation, set up, Accounts & Inventory masters, Transaction entries, Reports relating to maintenance of GST, uploading to GST portal, without repeating the common points already discussed.

GST Activation for Composition Dealer in Tally

Businesses with annual turnover of Taxable Items upto Rs 1.5 crore can opt for composition scheme.

Now, we will discuss GST Set Up for the Company in Tally.ERP9, who has been registered as Composition Dealer and GSTIN has been allotted.    

At Gateway, Press F11:Features  to get Company Features Menu .

Company Features Menu

Select Statutory & Taxation (or GoT>F11:Features>F3) to get Statutory & Taxation screen.

At Statutory & Taxation screen, set as follows:

  • At GST Activation, set Yes at Enable Goods & Services Tax (GST) to activate GST.
  • At PAN / Income Tax No, enter the PAN of the organisation.
  • In case of Company, at Corporate Identity No (CIN),enter the CIN of the Company (otherwise leave blank).
  • At Set / Alter GST details, set Yes to get GST Details entry screen. Even having Set Yes and having set the GST details, this option would get set to No automatically. So, don’t get confused or worried. You have to set Yes each time, to view / change the set up.

GST activation at Statutory & Taxation set up

Company GST Details entry in Tally

GST set up for Composition Dealer

At GST Details entry screen, enter as follows:

  • State : At State, the State as selected at Company creation screen appears as default, otherwise select the State / UT, from the List of States , in which the company is registered with GST

List of States in Tally

  • Registration Type : At Registration Type, select Composition from list
  • Assessee of Other Territory : Set Yes if your business unit in located in the Exclusive Economic Zone (other territory), else Set No.
  • GSTIN/UIN : At GSTIN/UIN, correctly enter the complete 15 digit State /UT GSTIN allotted. If you are working for Test Company for learning, or the Registration Number is not yet allotted, but you want to go ahead for working, you may enter any imaginary Registration in valid structure, as explained next, and proceed further.
  • Date of Applicability : At Applicable from, normally enter the date of applicability of GST in India (i.e 1 July 2017). For new applicants, enter the Date from which GST became applicable in your organisation. GST will not be applicable for vouchers earlier to this date and such transactions will not be included in any GST report.
  • Tax Rate for Taxable Turnover : Enter the Tax Rate (2% for Manufacturer, 1% for Trader, 5% for Restaurant not serving alcoholic drinks), which would be considered for Tax Liability computation in GSTR-4 Return.
  • E-way Bill Applicability : At E-way Bill Applicable? set Yes if e-way Bill is applicable, else set No. If set Yes, then further set up the following options.
    • E-way Bill Applicability Date : AtE-way Bill Applicable from, enter the date of e-way Bill applicability.
    • E-way Bill Threshold Amount : At E-way Bill Threshold enter the minimum value above which e-way Bill is mandatory (e.g Rs 50000).
    • E-way Bill Intra State Applicability :  At E-way Bill Applicable for Intra state, set Yes if e-way Bill is mandatory  for Intra State Transaction also beyond the threshold limit, else set No.
  • Tax Rate for Purchase : Set Yesto enter the GST rate in the ledgers and stock items which is carried in vouchers (preferred), set No to enter GST rate in each voucher entry. It is preferred to set Yes so that you may sent GST rates in Stock item and applicable ledger Accounts avoiding GST rate entry repeatedly in Invoice, for faster and accurate voucher entry.

First Time Company GST Quick Set  up

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