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GST Faq
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.
The JSON and Excel formats for consolidated debit or Recording Transactions under GST
credit notes are not available on the department portal. If
you are using Tally.ERP 9 for filing returns, you need to link Licensing and Migration for GST
a debit or credit note against only one corresponding
original invoice. If you are using Tally.ERP 9 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.
3. Services availed in another state by paying central and state tax, are appearing under "Mismatch
in Nature of transaction and Place of supply, Party's country" in GSTR-1 and GSTR-3B. How to
resolve this exception?
You can click A : 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 Tally.ERP 9, 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 Tally.ERP 9.
5. Can I export e-Way Bill details of a transaction in MS Excel or JSON format, without details of Part
B of e-Way Bill (transporter ID and mode of transport)?
Tally.ERP 9 supports generation of MS Excel and JSON files with e-Way Bill details, as per the
requirements of offline utility tool provided by NIC. As NIC's offline utility tool does not support
export of data without transport details, the same cannot be done from Tally.ERP 9 as well. However,
you can generate e-Way Bill without transport details, by entering the transaction details directly on
the portal.
6. Why is the party type Government Entity, not appearing in the party ledger? What will happen to
the transactions recorded with this party type in releases upto 6.4.6?
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 .
7. How do I identify the difference between Sales Register and GSTR-1/GSTR-3B return?
Check if any of the transactions are appearing under Incomplete/Mismatch in information (to be
resolved) of GSTR-1 or GSTR-3B , and resolve them.
Check if any of the transactions are appearing under Not relevant for returns . Check those
transactions and include them if relevant.
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 .
8. How to record interstate sales made to embassy/UN body, and in which fields of the returns will it
be captured?
New natures of transactions are introduced for interstate sales made to Embassy/UN body.
The relevant values of vouchers recorded with the new natures of transaction, will be captured in the
following sections:
The relevant values of transactions recorded with the new natures of transaction, will be captured in
the following tables:
o Taxable transactions in 3.1(a) Outward taxable supplies (other than zero rated, nil rated and
exempted)
o Exempt and nil rated transactions in 3.1(c) Other outward supplies (Nil rated, exempted)
o 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 .
10. Is it required to show GST calculation in Delivery challan? If so, what is the impact on 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 .
11. Can I get tax-rate-wise break-up on GSTR-1 and other GST return forms?
You can view the tax-rate-wise break-up in the Summary view of GSTR-1 and GSTR-3B .
12. How do I find out GST Liability and GST Input Credit?
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 Tally.ERP 9:
o To view GST liability, go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1 .
And, to view the ITC, go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2 .
Or
o Go to Gateway of Tally > Display > Account Books > Ledger . Select the GST ledger. In the
Ledger Vouchers report, the debit balance displays the ITC. And the credit balance displays
the tax liability.
Or
o Go to Gateway of Tally > Display > Account Books > Group Summary > Duties & Taxes . The
debit and credit balances of GST ledgers appear in the Group Summary .
13. When will credit note entries participate in Credit/Debit Notes (Unregistered) - 9B in GSTR-1?
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.
14. Why does the Total Value in HSN/SAC Summary not match the Invoice Amount in the GSTR-1
return format?
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.
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.
2. Why are purchases recorded with GST ledgers, not appearing in the GST Ledger Vouchers report?
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 > F12 > set the option Activate cash/trade
discount? to No .
4. Is it required to print the date and time of removal of goods for GST invoices?
No. It is not mandatory to print the date and time of the removal of goods in the GST invoices.
5. The Sales Invoice format changed after upgrading and activating GST. Why?
Tally.ERP 9 Release 6.0 onwards, 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.
7. Can I have both exempt and non-exempt goods in the GST bill?
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.
8. How do I pass multiple tax rates for multiple stock items in a single invoice?
In a single invoice, select the stock items attracting different GST rates, and then select the tax
ledgers. Press Alt+A to view the tax calculations for each of the stock items selected in the invoice.
Refer to Recording Local GST Sales for more information.
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.
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 .
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 .
VAT TIN gets printed on the bill when VAT is enabled along with GST. If you do not want TIN to be
printed, then you can deactivate VAT features .
GST amount appears based on the tax defined in the masters, in the following order:
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.
13. How can I remove GST rates from the Stock Item master?
You can remove the GST rates from the Tax Rate History of the GST Details screen in the stock item
master.
You can create multiple addresses for one customer in Tally.ERP 9, and update all the GSTINs of that
customer along with the corresponding address.
2. If our company has multiple GSTINs, do we need to have one company with multiple godowns, or
should we create multiple companies in Tally.ERP 9?
You can have only one GSTIN per company. If you have multiple GSTINs, you need to create
multiple companies in Tally.ERP 9.
You can enable the option Maintain Accounts Only in F11: Features > F1 , and enable GST in F11:
Features > F3 .
4. Can I use a common GST tax ledger for all GST tax types? If not, why?
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:
o It will help in the payment of tax under separate tax type heads as required by GSTN.
o It will help in availing input tax credit for each tax type.
o It will help the government in ascertaining the revenue for each tax type, which will enable
smooth revenue-sharing mechanism.
5. How do I claim Input Tax Credit (ITC) for the purchase of capital goods?
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 motorcab, 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 Tally.ERP 9 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 .
7. How does auto calculation happen for central tax/state tax/integrated tax using voucher class?
Auto calculation will happen when you create a voucher class with central tax/state tax/integrated
tax as a default additional ledger.
In Tally.ERP 9, enable the option Use separate actual and billed quantity columns under F11 >
Inventory 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.
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. This transaction appears in
B2BUR Invoices - 4B of the GSTR-2 report.
The HSN code under GST needs to be furnished based on the turnover limit of the dealer during the
previous financial year. Therefore, Tally.ERP 9 does not forcefully copy the HSN code on activating
GST for your existing data.
2. How to enter HSN code in multiple companies each having the same stock items?
You have to provide HSN code in each company individually, in one of the following ways:
o Enter the HSN code in the GST Details screen at the company level.
o Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup , and enter the
HSN code in the GST Rate Setup screen.
2. Effective from 1st February 2019, supply of warehoused (custom bonded warehouse) goods, high
sea supplies, supply from non-taxable territory to other non-taxable territory are not treated as
supply. How to record such transactions?
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 Tally ERP 9. You can maintain
these ledgers separately for GST.
This happens automatically in Tally. ERP 9. There is no provision to capture input credit in GSTR-1
and GSTR-2. You can check the available input tax credit in GSTR-3 by logging in to GSTIN portal. In
Tally.ERP 9, 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.
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.
7. Can I view the central tax (CGST) and state tax (SGST) bifurcation of tax amount in Profit and
Loss A/c?
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 .
8. How to manage GST accounts when I have multiple branches in different states?
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.
10. How to make stock transfer entry between two godowns of same organisation inside the state
and outside the state?
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 Tally.ERP 9.
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 Tally.ERP 9. When the
GST rules related to job work are finalised, necessary changes will be incorporated, and made
available in Tally.ERP 9.
In Tally.ERP 9 Release 5.0 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 Allow entry of rate inclusive of tax for stock item?
under F12: Configure in sales or purchase invoice.
2. Click F12: Configure and enable the option Allow entry of rate inclusive of tax for stock item?
Open your company in Release 6.5.2 and follow the on-screen instructions. For more information,
refer to Upgrading to Tally.ERP 9 Release 6 .
2. How to use my existing license in both Release 4.93 and Release 6.5.2?
After installing Tally.ERP 9 Release 6.5.2, select Configure your existing license in the Startup screen
and enter your existing license details. For more information, refer to Configuring Tally.ERP 9 License
.
Refer to Renewing TSS for Tally.ERP 9 and Upgrading to Tally.ERP 9 Release 6 for detailed
information.
4. I have about 20 companies in Tally.ERP 9. How do I migrate all companies at one shot?
After upgrading to Tally.ERP 9 Release 6, you just have to open all the companies one by one, after
which data of all the companies data will be automatically migrated.
5. While opening data in an older release, it displays error "Data of incorrect version 12, can only run
version 11".
Data migrated to a later version of Tally.ERP 9 is not reverse compatible. This means, if you have
migrated your data to the latest release, you cannot open the same data using an earlier release of
Tally.ERP 9. Therefore, it is recommended that before migrating your data, take a backup or copy of
your data and open the backed up data in the earlier release, if needed.
The actual tax liability and input credit for your business will be available in GSTR-3 on the GSTN
portal.
In Tally.ERP 9, 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.
Similarly, the Total Tax Amount in the Total Inward Supplies section of GSTR-2 is the input credit
available to your business for the period.
7. How to file my VAT, excise and service tax returns for the period up to 30th June 2017?