3 Ways to setup GST rates in Tally ERP 9
It has been now over 10 months that GST was declared as operational in India, and over that period many new amendments and rate changes have been executed by the GST Council. This has affected many companies and they would like to make changes to their accounting so as to reflect the correct rates in the invoices that they generate.
Fortunately Tally.ERP 9 gives 3 ways to setup GST Rates in your company accounting structure and that is what we will discuss in the following few paragraphs. But, first let us understand why there is a need to give three ways to define rates and why not only one way so as to make things easier to implement you would ask.
So to understand that we shall take examples of three different types of companies and then we shall be setting up the rates accordingly.
From Gateway of Tally -> F11: Features -> Statutory & Taxation -> Set /Alter GST rate details
Press F12: configure and enable the following features as shown in the image below:
The GST Classification screen will appear in the following manner:
Let us fill in the details as required:
HSN/SAC Details:
a) Description:- Type “Cheese”
b) HSN/SAC : Type “0406”
c) Taxability: set as “Taxable”
d) Integrated Tax: Type “12%”
You may notice that tally equally divides the IGST rate to CGST and SGST/UTGST portions
automatically.
The Settings should be exactly as shown in the image below:
Save the Classification Settings.
By this settings, Tally.ERP9 Understands that this Company data maintains only Stock Items that deals with “Cheese” items and have the same HSN code and Tax rates for all items in this data. The user need not set this same settings in all Stock Items. But if the user has more stock items with different HSN codes and GST rates, then this settings is not useful at the Company Master level.
Accounting Group level GST Classification Settings: The above explained GST
Classification screen is also available at the Accounting Group Level.
Lets Create a new Sales Account Group called “Sales Group 18%”
Gateway of Tally -> Accounts Info -> Groups -> Single Group Create -> Sales Group 18%
Enable the option “Set/alter GST Details” to Yes. Fill in the screen as shown in the image below:
Accounting Ledger level GST Classification Settings: GST Classification screen can also
be set at Accounting Ledger Level.
Lets Create a new Sales ledger called “Sales @ 28%”
Gateway of Tally -> Ledger -> Create
Create a ledger as per the image shown below and set the GST Classification for this ledger.
Set the GST Classifications for the Sales Ledger as shown in the image below:
Save the configuration.
Set the Type of Supply as “Goods”. Save the Ledger Creation settings.
So from the above we have seen that in Tally it is very easy to define GST rates at different levels and what Tally will pickup the rates from is the lowest level defined thus if rates are defined at Ledger Level then it will not pick up from Group level or company level.
To know in depth about Tally with GST please refer to the book "Learning Tally ERP 9 with GST" by Sajee Kurian which is also available as a Kindle Edition
Fortunately Tally.ERP 9 gives 3 ways to setup GST Rates in your company accounting structure and that is what we will discuss in the following few paragraphs. But, first let us understand why there is a need to give three ways to define rates and why not only one way so as to make things easier to implement you would ask.
So to understand that we shall take examples of three different types of companies and then we shall be setting up the rates accordingly.
Company level GST rate Setup
This is useful where the company deals in only either a single product or a group of products which has a similar rate structure and this is very useful for them since they do not have to create different types of classifications and the rates are easily picked up in any transaction they make for sales of goods or services. A typical company would be a service sector company where the GST rates are defined as 18% flat for e.g. any Telecom company or a software company.From Gateway of Tally -> F11: Features -> Statutory & Taxation -> Set /Alter GST rate details
Press F12: configure and enable the following features as shown in the image below:
The GST Classification screen will appear in the following manner:
Let us fill in the details as required:
HSN/SAC Details:
a) Description:- Type “Cheese”
b) HSN/SAC : Type “0406”
c) Taxability: set as “Taxable”
d) Integrated Tax: Type “12%”
You may notice that tally equally divides the IGST rate to CGST and SGST/UTGST portions
automatically.
The Settings should be exactly as shown in the image below:
Save the Classification Settings.
By this settings, Tally.ERP9 Understands that this Company data maintains only Stock Items that deals with “Cheese” items and have the same HSN code and Tax rates for all items in this data. The user need not set this same settings in all Stock Items. But if the user has more stock items with different HSN codes and GST rates, then this settings is not useful at the Company Master level.
Accounting Group level GST Classification Settings: The above explained GST
Classification screen is also available at the Accounting Group Level.
Lets Create a new Sales Account Group called “Sales Group 18%”
Gateway of Tally -> Accounts Info -> Groups -> Single Group Create -> Sales Group 18%
Enable the option “Set/alter GST Details” to Yes. Fill in the screen as shown in the image below:
Accounting Ledger level GST Classification Settings: GST Classification screen can also
be set at Accounting Ledger Level.
Lets Create a new Sales ledger called “Sales @ 28%”
Gateway of Tally -> Ledger -> Create
Create a ledger as per the image shown below and set the GST Classification for this ledger.
Set the GST Classifications for the Sales Ledger as shown in the image below:
Save the configuration.
Set the Type of Supply as “Goods”. Save the Ledger Creation settings.
So from the above we have seen that in Tally it is very easy to define GST rates at different levels and what Tally will pickup the rates from is the lowest level defined thus if rates are defined at Ledger Level then it will not pick up from Group level or company level.
To know in depth about Tally with GST please refer to the book "Learning Tally ERP 9 with GST" by Sajee Kurian which is also available as a Kindle Edition
