GST Composition Dealer Sales Invoicing in Tally

Sales Invoicing for GST Composition Dealer in Tally

Composition Dealer cannot charge GST in sales Invoice. They should issue bill of Supply, as Sales Invoice (cannot issue Tax Invoice).

GST Set up for Sales Ledger for Composition Dealer in Tally

GST set up for Sales Ledger Account for Composition Dealer 

Create Sales Invoice (GoT>Accounting invoice>F8:Sales) to get sales Invoice entry screen. At Type of ledger, select Not Applicable from the list of Types of Ledger (as it is not for Tax, Discount or Rounding Off).

GST Set up for Sales ledger for Composition Dealer in Tally

At Is GST Applicable, set No (as GST is not chargeable for Composition Dealer in Sales Invoice)

GST Ledger Type List in Tally

Sales Invoice Entry for GST Composition Dealer in Tally

Select GoT>Accounting Invoice>F8:Sales to get sales Invoice entry screen. Select Customer ledger, Select item, Quantity & rate as usual. Value is computed and displayed. Enter other ledger account, if any. No tax is charged.

Sales Invoice entry for GST Composition Dealer in Tally

GST Composition Dealer Sales Invoice Printing in Tally

Having completed the Invoice entry, click P:Print button to get Invoice Printing screen. Set the following options:

  • Invoice Printing Configuration : Click F12: Configure to get Sales Invoice Printing Configuration screen . Set the Title of Document (as Bill of Supply) and Sub Title as desired.

GST Sales Invoice Configuration for Composition Dealer in Tally

  • Invoice Title : At Sales Invoice printing screen (or at Sales Invoice Printing Configuration screen , click T:Title button to get Report Title Screen. Set the Title, Sub Title (the values set are displayed at Report Printing screen) and other option.

Compostion Delaer GST Invoice Title set up in Tally

The options and values as set at Report Title screen would be printed in Invoice. So, Title & Sub Title as set at Report Titles would be printed (not the Title set at Invoice printing Configuration screen

Having set the Configuration options and Invoice Title, type Yes at Print Yes / No box, to print the Invoice .

GST Composition Dealer Sales Invoice in Print in Tally

Effect in GSTR: Select GoT>Display>Statutory Reports>GST>GSTR-4 to view GSTR-4 in which Sales by Composition Dealer would be reflected at Turnover of Taxable Sales, showing the Taxable Value & Tax Amount .

Composition Dealer Invoice reflected in GSTR-4 Report in Tally

GST Composition Dealer Sales Invoice  Additional Charges entry in Tally

For additional charges in Sales Invoice, create Ledger Account for Additional Charges as Income Account .

Income Ledger Account to be included in sales Invoice in Tally

Now create sales Invoice as usual. Include the additional charges.

Composition Dealer Sales Invoice with Additional Charges in Tally.

The Tax liability would be computed including the Taxable Additional Charges, as shown in GSTR-4.

Effect of GST Composition Dealer Sales Invoice with additional charges in GSTR-4 Report in Tally

GST Composition Dealer combined Sales Invoice for Taxable & Non-Taxable Goods

The Tax on Turnover for Composition Dealer would be computed on total sales (irrespective Create Stock Item ledger for Nil rated, Exempt & Non GST Goods) in the Invoice.

GST Set up for Non Taxable Stock Items

Create Stock Item (GoT>Inventory Info>Stock Item>Create) to get Stock Item entry screen. At GST details screen, set the options for NIL rated, Exempted & Non GST Items .

GST Set up for Non Taxable Items for Composition Dealer  in Tally

GST Composition Dealer Composite Rate Invoice Entry for Taxable & Non Taxable Goods

Create Sales Invoice (Got>Accounting Vouchers>F8:Sales) to get sales Invoice entry screen. Enter data for Items  (Nil rated, Exempt & Non GST Goods) and also including Additional Charges.

GST Composition Dealer Composite Sales Invoice Entry for Taxable & Non Taxable Goods in Tally

Effect of GST Composition Dealer Composite Taxable & Non Taxable Invoice in GSTR-4 Report:

Tax Liability for the seller would be computed on Total sales of all sorts of Goods (Taxable, Nil Rated, Exempted, Non GST), as reflected in GSTR-4 Report

Effect of GST Composition Dealer Invoice in GDTR-4 Report in Tally

So, Composition Dealer cannot charge GST in Sale Bill, but has to pay GST on his own, at specified Rate, on sales of all Types of Goods (Taxable, Nil Rated, Exempted, Non GST), to any type of Customer (Regular, Unregistered, Composition Dealer).

GST Computation on  Non Taxable Charges in Invoice

Tax Liability is computed on total turnover. However, tax is computed on taxable Other charges included in Invoice but not charged on Non taxable other charges as shown in next 2 examples. We have created a Rounding Off Ledger, setting Invoice Rounding at Type of Ledger. It is set as Non taxable (the option Is GST Applicable is set as Not Applicable)

GST Set up Non Taxable Ledger Accounts in Tally

The Invoice created includes Taxable & Non Taxable Item, taxable & Non Taxable Other charges .

Invoice with Taxable & Non Taxable Charges in Tally

The GSTR-4 Report shows the amount of Non Taxable Ledger Account is not inlcuded for Computaion of Tax Liabilty.

Effect of Taxable & Non Taxable Charges in GSTR-4 Report in Tally

Another Non Taxable Expenses Ledger is created . The option Type of Ledger is set to Not Applicable. The option Is GST Applicable is set as Not Applicable.

GST Set up for Non taxable Account in Tally

The Invoice created includes Taxable & Non Taxable Item, Taxable & Non Taxable Other charges.

GST Composition Dealer Sales Invoice for Taxable & Non Taxable Accounts in Tally

The detailed drilled down report at GSTR-4 Report shows the amount of Non Taxable Ledger Account is not inlcuded for Computaion of Tax Liabilty

Effect of Taxable & Non Taxable Charges in GSTR-4 Report in Tally

Composition Dealer Sales Invoice with Discount in Tally

We now show Sales Invoicing allowing Discount and the Tax Liability computation on such Sales.

GST Set up for Discount Ledgers for Composition Dealer in Tally : When Item level Discount is allowed, Discount amount is reduced from Sales Value. So, No Discount Ledger need to be created. However, when Discount is allowed on Invoice level, you need to create Discount Ledger Account.

Create Ledger Account (GoT>Accounts Info>Discount)

GST set up for Discount Ledger (Expense) in Tally

The Discount Leger would be considered as Non-Taxable as Tax Liability would not be considered on Discount Allowed (i.e Discount would be reduced from Turnover to compute Tax Liability)

GST Set up for Discount ledger in Tally

Invoice allowing Discount : To understand the implication of both type of Discount, we create an Invoice, including both the Discount Ledgers as created above.

Sales Invoice with Discount in Tally

However, in GSTR-4 , the Tax Liability is computed without deducting the Discount Value.

Effect of Invoice in GSTR-4 Report in Tally

Invoice wise details in GSTR-4 Report in Tally

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