GST Tally Accounting complete guide PDF

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GST HANDBOOK FOR ACCOUNTANTS JOURNAL ENTRIES

Prepared by: CA. Ven Venugo ugo ugop pal G Gell ell ellaa Intention: 1. 2. 3. 4.

To Ease the Accountant Tally screenshots are presented for educational purpose. No part of the document shall be construed as promotion This is the V 1.0, and we update the document time to tim Tuesday, 25 July 2017

Venugopal Gella Chartered Accountants

Contents List of Ledgers to be created...................................................................................................................... 2 Journal Entries in Books of accounting ...................................................................................................... 3 Recording a journal voucher in tally .......................................................................................................... 7 Create RCM Purchase Ledger ................................................................................................................ 7 Accounting for RCM Transaction ........................................................................................................... 8 Increase Tax Liablity ............................................................................................................................... 9 Increase Liability and Credit Jointly .....................................................................................................10 Payment of Taxes ................................................................................................................................. 11 RCM Payment Voucher ........................................................................................................................ 12 Recording a journal voucher to raise liability for reverse charge ........................................................ 13 Reverse RCM Liability & Take Credit ................................................................................................... 15 Claim tax credit when the advance amount paid matches with the purchase value.......................... 16 Cancellation/Reversal of Payment Voucher ........................................................................................ 19 Purchase Returns under reverse charge .............................................................................................. 20 To record a debit note ......................................................................................................................... 22 Input Tax Credit........................................................................................................................................ 24 P&L and GST ............................................................................................................................................. 25 Return for the Month of July, August & September due dates ............................................................... 26

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Venu & Vinay Chartered Accountants

Lis Listt of Le Ledge dge dgers rs to be C Crea rea reate te ted d There is no defined rule of accounting for GST. These ledgers and entries are created to have better control and ease of reconciling with the books Electronic Registers maintained by GSTN. If multiple GSTIN Books are maintained in same entity additional ledgers may be created as per the need. Curr ent A ss ets Current Ass ssets Input CGST A/c Input SGST A/c Input IGST A/c Input CGST RCM A/c Input SGST RCM A/c Input IGST RCM A/c Input CGST URD A/c Input SGST URD A/c Input IGST URD A/c ITC CGST Ledger A/c ITC SGST Ledger A/c ITC IGST Ledger A/c Provisional ITC CGST A/c Provisional ITC SGST A/c Provisional ITC IGST A/c Electronic Cash CGST Ledger A/c Electronic Cash SGST Ledger A/c Electronic Cash IGST Ledger A/c Cash/ Bank A/c Sal es A /c Sales A/c Local B2B sales A/c Local B2C sales A/c Interstate B2B sales A/c Interstate B2C sales A/c

Duti es an d taxe rent liabil itie s) Duties and taxess (cur (current liabilitie ities) 9% Output CGST A/c* 9% Output SGST A/c* 18% Output IGST A/c* 9% Output CGST (Advance) A/c 9% Output SGST (Advance) A/c 18% Output IGST (Advance) A/c CGST Advance A/c SGST Advance A/c 9% Output CGST URD A/c(Liability) 9% Output SGST URD A/c(Liability) 18% Output IGST URD A/c(Liability) 9% Output CGST RCM A/c(Liability) 9% Output SGST RCM A/c(Liability) 18% Output IGST RCM A/c(Liability) IGST Advance A/c *Note: Here only 18% GST rate is considered. Similar entries apply for other rates of taxes.

Current Liabili ability Curr ent Li abili ty Liability Ledger CGST A/c Liability Ledger SGST A/c Liability Ledger IGST A/c

Direct Expense ensess A A/c Dire ct Exp ense /c Direct Expenses Registered A/c

Indire irect xpenses Ind ire ct EExpe xpe nses A/c Indirect Expenses Registered A/c

Direct Expenses Unregistered A/c

Indirect Expenses Unregistered A/c

Purcha chase Pur cha se A/c Local Purchase A/c Interstate Purchase A/c Local RCM Purchases A/c Interstate RCM Purchases A/c URD Purchase A/c Import A/c Local Composition Dealer Purchase A/c

Sundry Creditors (Group Sun dry Cred itors (Gr oup in tally) Creditors – Registered Creditors – Unregistered

Interstate Composition Dealer Purchase A/c Exempt & Nil rated Purchase A/c

Sun dry Deb tors Sundry Debtors

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Cre ditors – Regis tered (led ger Creditors Registered (ledger ger)) Vendors A/c (registered) Vendors A/c (unregistered)

Debtors

Venu & Vinay Chartered Accountants

Jou Journal rnal En Entries tries in B Book ook ookss of acc accou ou ountin ntin ntingg Tran Transacti sacti saction on

Und Under er GS GSTT (All valu values es ar are e sa sample mple nu number mber fo forr un underst derst derstandin andin anding) g)

Out Outward ward Supp Supply-Sal ly-Sal ly-Sales es Local Sale – B2B

Interstate Sale

Local Sale – B2CL

Export (When GST payable)

Export

Local Sale – B2CS

Exempted / NIL

Credit Note – B2B

Credit Note – B2C

Advance receipt (say in July) (A)

Raising of Invoice in subsequent month (say in August) (B)

Dr Debtors A/c Cr Local B2B sales A/c Cr 9% Output CGST A/c Cr 9%Output SGST A/c Dr Debtors A/c Cr Interstate B2B sales A/c Cr 18% Output IGST A/c

1,41,600

1,18,000

Dr Debtors A/c Cr Local B2C sales A/c Cr 9% Output CGST A/c Cr 9% Output SGST A/c Dr Debtors A/c Dr IGST Refund Due A/c. Cr Sales (export) A/c Cr 18% Output IGST A/c Dr Debtors A/c Cr Sales (export) A/c

11,80,000

Dr Debtors A/c Cr Local B2C sales A/c Cr 9% Output CGST A/c Cr 9% Output SGST A/c Dr Debtors A/c Cr Exempted Sales A/c

1,41,600

Dr Local B2B sales A/c Dr 9% Output CGST A/c Dr 9% Output SGST A/c Cr Debtors A/c Dr Local B2C sales A/c Dr 9% Output CGST A/c Dr 9% Output SGST A/c Cr Debtors A/c Dr Cash/Bank A/c Dr IGST Advance A/c Cr Customer A/c Cr 18% Output IGST (Advance) A/c

1,20,000 10,800 10,800

Dr Customer A/c Cr Sales A/c Cr 18% Output IGST A/c

1,18,000

Dr 18% Output IGST A/c Cr IGST Advance A/c Dr Cash/Bank A/c Cr Customer A/c

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Rep Report ort orting ing in GSTR table

2,00,000 36,000

1,25,000

GSTR 1 1,20,000 Table 4A 10,800 eCommerce Transactions 10,800 can be an additional entry GSTR 1 1,00,000 Table 4A 18,000 GSTR 1 10,00,000 Table 5 90,000 To report with state code 90,000 GSTR 1 Table 6A 2,00,000 With payment of Duty 36,000 GSTR 1 1,25,000 Table 6A Under LUT or Bond 1,20,000 10,800 10,800

1,50,000 1,50,000

GSTR 1 Table 7A

GSTR 1 Table 8 GSTR 1 Table 9 Adjustments to Past sales

1,41,600 1,20,000 10,800 10,800

GSTR 1 Table 10 Adjustments to Past sales 1,41,600

10,000 1,800

GSTR 1 Table 11A 10,000 1,800 1,00,000 18,000

1,800 1,800 1,08,000

GSTR 1 Table 4A

GSTR 1 Table 11B NA

1,08,000

Venu & Vinay Chartered Accountants

Inw Inward ard SSupply upply upply-Pu -Pu -Purchas rchas rchases es fr from om Registered Dealer - Intra state

Registered Dealer - Intra state (Not reflected in supplier i.e. GSTR 1 mismatch case) Registered Dealer (Inter State)

Dr Local Purchase A/c Dr Input CGST A/c Dr Input SGST A/c Cr Vendor (registered) A/c Dr Local Purchase A/c Dr Input CGST A/c Dr Input SGST A/c Cr Vendor (registered) A/c

1,00,000 9,000 9,000

GSTR 2 Table 3 1,18,000

10,000 900 900

GSTR 2 Table 3 11,800

Interstate Purchase A/c 15,000 Dr Input IGST A/c 2,700 Cr Vendor (registered)A/c 17,700 Inw Inward ard SSupply upply attra attracting cting R Rever ever everse se ch charge arge mech mechanism anism anism:: 1) Notification No.8/2017-Central Tax (Rate) – Exemption from payment of tax under reverse charge on inward supplies from dealer who is/are unre unregiste giste gistered red deal dealers ers –> Limit = Amount < 5,000/ day = Exempted from Tax (within state only) 2) Notification 4/2017-Central Tax (Rate)- List of goods on which Reversecharge is applicable 3) Notification 13/2017-Central Tax (Rate) - List of goods on which Reversecharge is applicable (For better understanding RCM payable on URD is referred as URD only) Purchase from Dr URD Purchase A/c 20,000 Unregistered Cr Vendor (unregistered) A/c 20,000 Dealer (Day 1) Tax payable on Dr Input CGST URD A/c 1,800 Reverse charge Dr Input SGST URD A/c 1,800 from above URD Cr 9% Output CGST URD 1,800 purchase (Day 1) A/c(Liability) 1,800 Cr 9% Output SGST URD A/c(Liability) Purchase from Dr URD Purchase A/c 4,500 unregistered Cr Vendor (unregistered)A/c 4,500 dealer (Day 2) (As the amount doesn’t exceed 5,000/day overall thus exempted) Legal service Legal Expenses A/c 30,000 received on which Cr Service Provider (registered) 30,000 tax is payable on A/c reverse charge Tax payable on Dr Input CGST RCM A/c 2,700 reverse Charge Dr Input SGST RCM A/c 2,700 Cr 9% Output CGST RCM 2,700 A/c(Liability) 2,700 Cr 9% Output SGST RCM A/c(Liability) Composition Dr Purchase 50,000 Dealer Cr Creditors 50,000 Exp Expen en enses ses & Pur Purchas chas chase e of Cap Capital ital G Goods oods Indirect Expenses

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Dr Telephone Charges A/c Dr Input CGST A/c Dr Input SGST A/c Cr Bank

5,000 450 450

GSTR 2 Table 3

GSTR 2 Table 4B

GSTR 2 Table 4B

GSTR 2 Table 4B GSTR 2 Table 4A

GSTR 2 Table 4A

GSTR 2 Table 7A/7B GSTR 2 Table 3

5,900 Venu & Vinay Chartered Accountants

Asset Purchase (Interstate)

Dr Furniture A/c Dr Input IGST A/c Cr ABC furniture’s A/c

40,000 4,800

Dr 9% Output CGST A/c Dr 9% Output SGST A/c Dr 18% Output IGST A/c Cr Liability Ledger CGST A/c Cr Liability Ledger SGST A/c Cr Liability Ledger IGST A/c

21,600 21,600 54,000

GSTR 2 Table 3 44,800

Up on GS GSTR TR -1 Transfer to Liability Ledger

Liability of advance receipt

Liability under RCM on URD

(CGST = 10,800 + 10,800 = B2B + B2C SGST = 10,800 + 10,800 = B2B + B2C IGST = 18,000+ 36,000 ) Dr 18% Output IGST (Advance) A/c Cr Liability ledger IGST A/c

21,600 21,600 54,000

1,800 1,800

Dr 9% Output CGST URD A/c(Liability) Dr 9% Output SGST URD A/c(Liability) Cr Liability ledger CGST A/c Cr Liability ledger SGST A/c

1,800 1,800

Dr 9% Output CGST RCM A/c(Liability) Dr 9% Output SGST RCM A/c(Liability) Cr Liability ledger CGST A/c Cr Liability ledger SGST A/c

2,700 2,700

Dr ITC CGST Ledger A/c Dr ITC SGST Ledger A/c Dr ITC IGST Ledger A/c Cr Input CGST A/c Cr Input SGST A/c Cr Input IGST A/c ( CGST = 9,000 + 450 SGST = 9,000 + 450 IGST = 2,700 + 4800)

9,450 9,450 7,500

Credit on URD purchases on which tax is to be paid on reverse charge Transfer to Credit on RCM purchases

Dr ITC CGST Ledger A/c Dr ITC SGST Ledger A/c Cr Input CGST URD A/c Cr Input SGST URD A/c

1,800 1,800

Dr ITC CGST Ledger A/c Dr ITC SGST Ledger A/c Cr Input CGST RCM A/c Cr Input SGST RCM A/c

2,700 2,700

When ITC reflected in GSTR2

Provisional ITC CGST A/c Provisional ITC SCGT A/c Cr Input CGST A/c Cr Input SGST A/c

Liability payable on RCM

1,800 1,800

2,700 2,700

GSTR 1 Adjustment entry To be Auto populated in GSTR 3 Part A Table 8

GSTR 1 Adjustment entry Auto populated in GSTR 3 Table 8 GSTR 1 Adjustment entry Auto populated in GSTR 3 Table 8 GSTR 1 Adjustment entry Auto populated in GSTR 3 Table 8

Up on GS GSTR TR -2 Transfer to Credit Ledger

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GSTR 2 Adjustment entry 9,450 9,450 7,500

GSTR 2 Adjustment entry 1,800 1,800 GSTR 2 Adjustment entry 2,700 2,700

900 900

GSTR 2 Adjustment entry 900 900 Venu & Vinay Chartered Accountants

On PPaym aym ayment ent of Taxe Taxess Transfer to cash ledger under RCM on URD

Dr Electronic Cash CGST Ledger A/c Dr Electronic Cash SGST Ledger A/c Cr Bank

1,800 1,800

Transfer to cash ledger under RCM

Dr Electronic Cash CGST Ledger A/c Dr Electronic Cash SGST Ledger A/c Cr Bank

2,700 2,700

Transfer to Cash Ledger

Cash Payment Dr Electronic Cash CGST Ledger A/c Dr Electronic Cash SGST Ledger A/c Dr Electronic Cash IGST Ledger A/c Cr Bank (CGST= 26,100 – 9,450 -900 SGST = 26,100-9,450 -900 IGST = 55,800 – 7500) TDS / TCS Dr Electronic Cash Ledger Cr Govt / eCom Operator

3,600

GSTR 3 Part B Table 12

5,400

GSTR 3 Part B Table 12 GSTR 3 Part B Table 12

6,750 6,750 48,300 61,800

-

Up on GS GSTR TR -3 Transfer of Liability under RCM (URD)

Dr Liability ledger CGST A/c Dr Liability ledger SGST A/c Cr Electronic Cash CGST Ledger A/c Cr Electronic Cash SGST Ledger A/c

1,800 1,800

Transfer of Liability under RCM

Dr Liability ledger CGST A/c Dr Liability ledger SGST A/c Cr Electronic Cash CGST Ledger A/c Cr Electronic Cash SGST Ledger A/c

2,700 2,700

Transfer to Credit Ledger

Dr Liability Ledger CGST A/c Dr Liability Ledger SGST A/c Dr Liability Ledger IGST A/c Cr ITC CGST Ledger A/c Cr ITC SGST Ledger A/c Cr ITC IGST Ledger A/c Cr Provisional ITC CGST A/c Cr Provisional ITC SGST A/c Cr Electronic Cash CGST Ledger A/c Cr Electronic Cash SGST Ledger A/c Cr Electronic Cash IGST Ledger A/C

21,600 21,600 55,800

Adjustment entry 1,800 1,800 Adjustment entry 2,700 2,700 Adjustment entry

13,950 13,950 7,500 900 900 6,750 6,750 48,300

{ CGST Liability = 21,600 SGST Liability = 21,600 IGST Liability = 54,000+1,800 = 55,800 } {ITC CGST =9,450 + 1,800 + 2,700 = 13,950 ITC CGST =9,450 + 1,800 + 2,700 = 13,950 ITC CGST = 7,500}

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Venu & Vinay Chartered Accountants

Re Reco co cording rding a jou journa rna rnall vou vouche che cherr in ta tally lly Create RCM Purchase Ledger To create a ledger for purchase of services under reverse charge 1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create. 2. Under - Purchase Accounts.

3. Is GST Applicable? - Applicable. 4. Set/alter GST details? - Yes.

• • • •

Nature of transaction - Purchase Taxable. Taxability - Taxable. Is reverse charge applicable? - Yes. Press F12: Configure and set Enable reverse charge calculation? to Yes. Set the rate details.

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Venu & Vinay Chartered Accountants

Accounting for RCM Transaction To re record cord a p purchas urchas urchase e entr entryy 1. Go to Gatewa atewayy of Tall Tallyy > Accou Accounti nti nting ng Vouch Vouchers ers > Acc Accoun oun ountin tin tingg Vou Vouchers chers > F9 F9:: Pur Purchase chase. 2. Enter the details as required.

Link the bill reference of the payment voucher (by selecting Agst Re Reff in the Bil Bill-wise l-wise De Details tails screen) to the purchase invoice, if you have made an advance payment. 3. Press Ctrl+A to save.

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Venu & Vinay Chartered Accountants

Increase Tax Liability To re record cord a jo journal urnal vvouche ouche oucherr to rraise aise on only ly the liability 1. Go to Gatewa atewayy of Tall Tallyy > Accou Accounti nti nting ng Vouch Vouchers ers > F7: Jou Journal rnal. 2. Click J: SStat tat Adj Adjust ust ustment ment ment. 3. Select the options as shown below.

4. Click F2: D Date ate and change the voucher date as required. 5. Debit the expense ledger or ledger grouped under Cu Curr rr rrent ent As Assets sets and credit the GST ledgers.

6. Press En Enter ter to save.

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Venu & Vinay Chartered Accountants

Increase Liability and Credit Jointly To re record cord a jo journal urnal vvouche ouche oucherr to rraise aise lia liability bility and claim ta taxx cre credit dit 1. Go to Gatewa atewayy of Tall Tallyy > Accou Accounti nti nting ng Vouch Vouchers ers > F7: Jou Journal rnal. 2. Click J: SStat tat Adj Adjust ust ustment ment ment. 3. Select the options as shown below.

4. Click F2: D Date ate and change the voucher date as required. 5. Debit and credit the GST ledgers with the same values.

6. Press En Enter ter to save.

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Venu & Vinay Chartered Accountants

Payment of Taxes To re record cord a ta taxx pay paymen men mentt vouc voucher her 1. Go to Gatewa atewayy of Tall Tallyy > Accou Accounti nti nting ng Vouch Vouchers ers > F5: Pay Payme me ment nt.

2. Click S: SStat tat PPayme ayme ayment nt and enter the required details.

Pay Payment ment Type Type:: Set the type of payment as R Regu egu egular lar 3. Ac Account count count: Select the bank from which the payment will be made. 4. Select the central and state tax ledgers. 5. Pr Provide ovide GST d details etails etails:: Enable this option to enter the bank details.

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Venu & Vinay Chartered Accountants

If the bank details are not available, you can enter them later in the Chall Challan an Re Reconcili concili conciliation ation report. 6. In the Ban Bankk Allo Allocation cation cationss screen, select the ledgers, enter the amount and provide the payment details. 7. Press Enter to save.

RCM Payment Voucher When you make an advance payment for a taxable service under reverse charge, due to be received on a future date, you can record an advance payment voucher.

To re record cord an adv advance ance pay paymen men mentt 1. Go to Ga Gatewa tewa tewayy of TTally ally > Acco ccoun un unting ting V Vou ou ouchers chers > F5: Paym Payment ent.

2. Click V: Re Reverse verse Chrg. Adv. to mark the voucher for advance payment. The values entered in this voucher are captured in GSTR GSTR-2 -2 report. Not Note: e: Payment vouchers recorded without clicking V: R Revers evers everse e Ch Char ar arge. ge. Adv. will not have GST implications, and will form part of the Sum Summar mar maryy o off Ex Exclud clud cluded ed Vou Vouchers chers chers. 3. In Accoun ccountt, select the bank from which the payment will be made. 4. Select the party ledger, and enter the details in the Adv Advance ance PPaym aym ayment ent D Details etails screen. Not Note: e: To categorise and display the ledgers attracting reverse charge in the Adv Advance ance Paym Payment ent Det Details ails screen, set the option Enabl Enable e rev revers ers erse e char charge ge ca calcula lcula lculatio tio tion? n? to Yes in the Conf Configura igura iguration tion screen of G GS...