ACCOUNTING PACKAGES MODULE IV NOTES

🍁MODULE 4 tally notes🍁


Tally is a popular accounting software used by many businesses. Generating GST reports in Tally is a crucial task for businesses registered under the Goods and Services Tax (GST) regime.

🔰Enabling GST in Tally🔰

1. *Activate GST*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation*. Enable *Goods and Services Tax (GST)*.
2. *Set GST Details*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Details*. Enter your GSTIN, GST Registration Type, and other required details.

🔰Configuring GST Settings🔰

1. *GST Rate Setup*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Rate Setup*. Configure GST rates for your products/services.
2. *GST Classification*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Classification*. Classify your products/services under the relevant GST categories.



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LEDGERS RELATING TO TDS
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To manage TDS (Tax Deducted at Source) in Tally, you'll need to create the following ledgers:

TDS Ledgers
1. *TDS Payable*: This ledger will be used to record the TDS deducted on payments made to vendors, contractors, or employees.
2. *TDS Receivable*: This ledger will be used to record the TDS deducted by customers or other parties on payments made to your business.
3. *TDS Adjustments*: This ledger can be used to record any adjustments or corrections related to TDS.

Other Related Ledgers
1. *Tax Deducted*: This ledger can be used to record the tax deducted on payments made to vendors, contractors, or employees.
2. *Tax Collected*: This ledger can be used to record the tax collected on receipts from customers.

How to Create TDS Ledgers in Tally
1. Go to *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. Create the TDS ledgers (TDS Payable, TDS Receivable, and TDS Adjustments) under the "Duties & Taxes" group.
3. Set the ledger properties as required (e.g., set the TDS Payable ledger as a "Tax" ledger)

🔰🔰🔰TDS VOUCHER 👇👇🔰🔰

To create TDS voucher types in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Voucher* > *F12: Configure*.
2. *Voucher Type* > *Create*.
3. *Voucher Type Name*: Enter a name for the TDS voucher type (e.g., "TDS Payment").
4. *Voucher Type*: Select "Payment" from the list.
5. *Use for TDS*: Enable this option.
6. *TDS Ledger*: Select the TDS Payable ledger created earlier.
7. *TDS Nature of Payment*: Select the relevant nature of payment (e.g., "Salaries", "Contract Payments", etc.).
8. *Save* the voucher type.

Creating Multiple TDS Voucher Types
Create separate voucher types for different TDS scenarios, such as:

- TDS on Salaries
- TDS on Contract Payments
- TDS on Rent
- TDS on Interest

Example
Suppose you want to create a TDS voucher type for salaries:

1. *Gateway of Tally* > *Voucher* > *F12: Configure*.
2. *Voucher Type* > *Create*.
3. *Voucher Type Name*: "TDS on Salaries".
4. *Voucher Type*: Select "Payment".
5. *Use for TDS*: Enable this option.
6. *TDS Ledger*: Select the TDS Payable ledger.
7. *TDS Nature of Payment*: Select "Salaries".
8. *Save* the voucher type.

By creating TDS voucher types in Tally, you'll be able to efficiently record and manage your TDS transactions.

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TDS REPORTS IN TALLY

To generate TDS reports in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Display* > *Statutory Reports* > *TDS*.
2. Select the required report from the list:

TDS Reports in Tally
1. *TDS Payment Report*: Displays the TDS payments made to the government.
2. *TDS Deduction Report*: Displays the TDS deductions made on payments to vendors, contractors, or employees.
3. *TDS Certificate Report*: Displays the TDS certificates issued to deductees.
4. *TDS Challan Report*: Displays the TDS challans generated for payment to the government.
5. *TDS Return Report*: Displays the TDS returns filed with the government.


🔰🔰GST TERMINOLOGY 🔰

Here are key GST terminologies:

GST Basics
1. *GSTIN*: Goods and Services Tax Identification Number, a unique 15-digit number assigned to each GST-registered business.
2. *GSTN*: Goods and Services Tax Network, the IT backbone of the GST system.
3. *CGST*: Central Goods and Services Tax, levied by the central government.
4. *SGST*: State Goods and Services Tax, levied by state governments.
5. *IGST*: Integrated Goods and Services Tax, levied on inter-state supplies.

GST Registration
1. *Provisional ID*: A temporary ID issued to businesses during the GST registration process.
2. *ARN*: Application Reference Number, a unique number generated after submitting the GST registration application.
3. *GST Certificate*: A certificate issued by the tax authorities after verifying the GST registration application.

GST Invoicing
1. *Tax Invoice*: A document issued by suppliers to charge GST on supplies.
2. *Bill of Supply*: A document issued by suppliers for exempted or nil-rated supplies.
3. *Delivery Challan*: A document used for transportation of goods without issuing a tax invoice.

GST Returns
1. *GSTR-1*: A return filed by suppliers to report outward supplies.
2. *GSTR-2*: A return filed by recipients to report inward supplies.
3. *GSTR-3B*: A simplified return filed by businesses to report summary of outward and inward supplies.
4. *GSTR-9*: An annual return filed by businesses to report annual summary of outward and inward supplies.

GST Payment
1. *GST Payment Challan*: A document used to make GST payments.
2. *Electronic Cash Ledger*: A ledger that reflects the electronic payments made by taxpayers.

GST Compliance
1. *GST Audit*: An examination of a taxpayer's GST returns and records to ensure compliance.
2. *GST Assessment*: A process to determine the GST liability of a taxpayer.
3. *GST Refund*: A refund of excess GST paid by a taxpayer.

Other GST Terms
1. *GSTN Portal*: The official website for GST registration, returns, and payments.
2. *E-Way Bill*: An electronic bill generated for the movement of goods.
3. *HSN Code*: Harmonized System of Nomenclature code, used to classify goods.
4. *SAC Code*: Service Accounting Code, used to classify services.

These GST terminologies will help you understand the basics of the GST system and its compliance requirements.

🔰🔰LEDGERS RELATING TO GST🔰🔰🔰

To manage GST in Tally, you'll need to create the following ledgers:

GST Ledgers
1. *CGST Ledger*: To record Central Goods and Services Tax.
2. *SGST Ledger*: To record State Goods and Services Tax.
3. *IGST Ledger*: To record Integrated Goods and Services Tax.
4. *GST Cess Ledger*: To record GST Cess (if applicable).
5. *GST RCM (Reverse Charge Mechanism) Ledger*: To record GST liability under RCM.

GST Input Credit Ledgers
1. *CGST Input Credit Ledger*: To record input credit of CGST.
2. *SGST Input Credit Ledger*: To record input credit of SGST.
3. *IGST Input Credit Ledger*: To record input credit of IGST.

GST Output Liability Ledgers
1. *CGST Output Liability Ledger*: To record output liability of CGST.
2. *SGST Output Liability Ledger*: To record output liability of SGST.
3. *IGST Output Liability Ledger*: To record output liability of IGST.

GST Payment Ledgers
1. *GST Payment Ledger*: To record GST payments made to the government.

How to Create GST Ledgers in Tally
1. *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. Create the GST ledgers (CGST, SGST, IGST, etc.) under the "Duties & Taxes" group.
3. Set the ledger properties as required (e.g., set the CGST ledger as a "Tax" ledger).

Example
To create a CGST ledger:

1. *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. *Ledger Name*: CGST.
3. *Group*: Duties & Taxes.
4. *Set as Tax Ledger*: Yes.
5. *Save* the ledger.

🔰🔰VOUCHERS RELATING TO GST🔰🔰

To manage GST in Tally, you'll need to create the following vouchers:

GST Vouchers
1. *Tax Invoice Voucher*: To record sales transactions with GST.
2. *Bill of Supply Voucher*: To record sales transactions without GST (e.g., exempted or nil-rated supplies).
3. *Delivery Challan Voucher*: To record transportation of goods without issuing a tax invoice.
4. *Receipt Voucher*: To record GST payments received from customers.
5. *Payment Voucher*: To record GST payments made to suppliers or the government.
6. *Debit Note Voucher*: To record GST adjustments or corrections for purchases.
7. *Credit Note Voucher*: To record GST adjustments or corrections for sales.

GST Adjustment Vouchers
1. *GST Adjustment Voucher*: To record GST adjustments or corrections.
2. *GST Reconciliation Voucher*: To reconcile GST discrepancies or differences.

How to Create GST Vouchers in Tally
1. *Gateway of Tally* > *Accounting Vouchers* > *F8: Sales* (for sales transactions).
2. *Gateway of Tally* > *Accounting Vouchers* > *F9: Purchase* (for purchase transactions).
3. *Gateway of Tally* > *Accounting Vouchers* > *F5: Payment* (for payment transactions).
4. Select the relevant GST voucher type and fill in the required details.

Example
To create a Tax Invoice Voucher:

1. *Gateway of Tally* > *Accounting Vouchers* > *F8: Sales*.
2. *Voucher Type*: Tax Invoice.
3. *Party's A/c Name*: Select the customer's ledger.
4. *Sales Ledger*: Select the sales ledger.
5. *GST Rate*: Select the applicable GST rate.
6. *Save* the voucher.

🔰🔰CREATION OF CGST IN TALLY

To create CGST (Central Goods and Services Tax) in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. *Ledger Name*: CGST.
3. *Group*: Duties & Taxes.
4. *Under*: Select "Central Tax" or "Central GST".
5. *Set as Tax Ledger*: Yes.
6. *Type of Duty/Tax*: Select "CGST".
7. *Rate of Duty/Tax*: Enter the CGST rate (e.g., 2.5%, 5%, etc.).
8. *Save* the ledger.


🔰INPUT SGST

To input SGST (State Goods and Services Tax) in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. *Ledger Name*: SGST.
3. *Group*: Duties & Taxes.
4. *Under*: Select "State Tax" or "State GST".
5. *Set as Tax Ledger*: Yes.
6. *Type of Duty/Tax*: Select "SGST".
7. *Rate of Duty/Tax*: Enter the SGST rate (e.g., 2.5%, 5%, etc.).
8. *Save* the ledger.

Recording SGST Transactions
1. *Gateway of Tally* > *Accounting Vouchers* > *F8: Sales* (for sales transactions).
2. *Gateway of Tally* > *Accounting Vouchers* > *F9: Purchase* (for purchase transactions).
3. Select the SGST ledger and enter the SGST amount.



🔰INPUT IGST


To input IGST (Integrated Goods and Services Tax) in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Accounts Info* > *Ledgers* > *Create*.
2. *Ledger Name*: IGST.
3. *Group*: Duties & Taxes.
4. *Under*: Select "Integrated Tax" or "IGST".
5. *Set as Tax Ledger*: Yes.
6. *Type of Duty/Tax*: Select "IGST".
7. *Rate of Duty/Tax*: Enter the IGST rate (e.g., 5%, 12%, etc.).
8. *Save* the ledger.

Recording IGST Transactions
1. *Gateway of Tally* > *Accounting Vouchers* > *F8: Sales* (for sales transactions).
2. *Gateway of Tally* > *Accounting Vouchers* > *F9: Purchase* (for purchase transactions).
3. Select the IGST ledger and enter the IGST amount.



🔰GST REPORTS

To generate GST reports in Tally:

Step-by-Step Process
1. *Gateway of Tally* > *Display* > *Statutory Reports* > *GST*.
2. Select the required GST report from the list:

GST Reports in Tally
1. *GSTR-1 Report*: Displays the outward supplies made by your business.
2. *GSTR-2 Report*: Displays the inward supplies received by your business.
3. *GSTR-3B Report*: Displays the summary of outward and inward supplies made by your business.
4. *GSTR-9 Report*: Displays the annual return of your business.
5. *GST Payment Report*: Displays the GST payments made by your business.
6. *GST Receipt Report*: Displays the GST receipts received by your business.
7. *GST Tax Liability Report*: Displays the GST tax liability of your business.


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