GST Regular Dealer Purchase from Composition Dealer in Tally

When a regular dealer buys form Composition dealer (who do not charge GST and do not give Tax Invoice), there is no GST Accounts or ITC involved in the purchase transaction in the books of GSTv Registered Buyer.

GST Set up Supplier Ledger Accounts master in Tally

Create supplier leger (GoT>Account Info>Ledger>create) as usual .

State : At State, select the State of the Composition dealer supplier . Composition dealers are normally allowed to sell only within same state (Intra State sale). So, the State selected would be same as the State of the Company (Buyer Company)

GST Set up for Composition Supplier Ledger Accounts master in Tally

GST details set up for Composition Supplier : At Composition supplier ledger account entry screen, set Yes at Set / Alter GSR details to get GST details screen. At supplier ledger GST details screen, at Registration Type, select Composition from the list. At GSTIN/ UIN, enter the GSTIN of the supplier (The 1^st two digit of GSTIN should be according to the State selected).

GST details set up for Composition Supplier in Tally

GST Regular Dealer Purchase entry from Composition Dealer in Tally

Create a Purchase Voucher entry (GoT>Accounting Voucher>F9:Purchase) to get Purchase voucher entry screen. Enter Voucher date, Select Supplier Ledger, Select Purchase Account.

GST Regular Dealer Purchase entry from Composition Dealer in Tally

At Tax Classification details pop up screen, the Tax Classification, Purchase from Composition Dealer would be auto selected by default (select it if necessary from Nature of Transaction list).

GST Tax Classification entry for Purchase from Composition Dealer in Tally

Click F12:Configure and set Yes at Allow Modification for Tax details for GST (to set up the proper classification) of the transaction during voucher entry at Tax Classification details.

Enter the Item details (Quantity, Rate, discount if any) for each Item purchased. There would be no GST charged in the Invoice.

GST Regular Dealer Purchase from Composition Dealer Tax Analysis display in Tally

Click A:Tax Analysis to get Tax Analysis screen showing the Taxable Value (No Tax amount would be displayed). Enter Narration (if any) and save the voucher.