Goods & service Tax (GST)

Introduction of G.S.T.
The goods and services tax (GST) is a value-added tax (VAT) levied on
most goods and services sold for domestic consumption. The GST is paid by consumers,
but it is remitted to the government by the businesses selling the goods and services.

Critics point out, however, that the GST may disproportionately burden
people whose self-reported income are in the lowest and middle income brackets,
making it a regressive tax. These critics argue that GST can therefore exacerbate income
inequality and contribute to social and economic disparities. In order to address these
concerns, some countries have introduced GST exemptions or reduced GST rates on
essential goods and services, such as food and healthcare. Others have implemented GST
credits or rebates to help offset the impact of GST on lower income households.

Goods and Services Tax, or GST, is a reformative indirect tax which

has subsumed all previous indirect taxes in India, such as VAT, Excise etc. It is a
single and comprehensive tax levied on the supply of goods and services
throughout India.

There are four categories of GST collected in India, as mentioned below:

 CGST (Central GST)

 SGST (State GST)

 IGST (Integrated GST)

 UTGST (Union Territory GST)

CGST and SGST are levied and collected by the Central and State
Governments, respectively, where goods are supplied and purchased within the
same state. In cases where there is an inter-state movement of goods and services,
IGST is levied instead of CGST and SGST, and the Central Government collects it.
The union territories of Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands,
Dadra & Nagar Haveli, Lakshadweep, Chandigarh and Daman & Diu do not have
their own legislature, and hence UTGST and CGST are levied on any intra-union
territory supply of goods and services. UTGST is a substitute for SGST in such
cases.
Fundamental of G.S.T. :-
GST stands for ‘Goods and Services Tax’. It consolidates all indirect taxes
into a comprehensive single tax at the Central and State levels. And hence, it has
played an essential role in simplifying India’s otherwise complex tax structure. It
has also been pivotal in solving the previous indirect tax system’s demerits; for the
same, it’s also referred to as a well-designed VAT.

Registration of GST
Any individual or company eligible under GST must register on the GST Portal
created by the Government of India. The registered entities will then be given a unique
registration number called GSTIN.

It is liable for all Service providers, buyers, and sellers to register. A business that
makes a total income of ₹20 lakhs or more in a financial year must be required to do
GST registration. It takes 2-6 working days to process.

Basics of GST
People have taken note of the GST or the Goods Services Tax law. A new
law has been proposed which is set to reform how people do business and the way
goods and services are taxed in India. Whether it makes goods cheaper for the
common man like you and me, nobody can tell. But this is going to impact our lives
in our jobs, our businesses and the overall economic environment. Reason enough
for us to learn something about it!

1. Who does it apply to?

 To every person who supplies goods and/or services of value exceeding Rs

20 lakh in a financial year. (Limit is Rs 10 lakh for some special
category states). Compulsory registration for these. And GST must be paid
when turnover exceeds Rs 20 lakh (Rs 10 lakh for some special
category states).
 To any person making inter-state taxable supply of goods and/or services
 Every e-commerce operator
 Every person who supplies goods and/or services, other than branded services,
through e-commerce operator
 Aggregators who supply services under their own brand name
 GST does NOT apply to Agriculturists

2. What is the GST framework as per the new law?

GST is expected to replace a myriad of indirect taxes such as VAT, customs

duty, Excise, CST, Service Tax, Entertainment Tax with a single tax called
the Goods and Services Tax.

 Broadly there will be 2 forms of GST in India.

 At the intra-state level (when goods travel within a state) and at the inter-
state level (when goods travel between states).
 At the intra-state level two types of GST shall be levied CGST (Central
Goods and Services Tax) and SGST (State Goods and Services Tax).
 At the inter-state level IGST (Or Integrated Goods and Services Tax) shall
be levied.
 Imports shall be considered as inter-state supply.
 Exports shall be zero rated.

 Supplies to SEZ will be Zero-rated

3. Will the new GST allow tax cascading benefits?

Many of us are aware that service tax and VAT have cascading benefits, which
means you can avail credit of tax paid by you on inputs. For example in case of
service tax – you levy service tax on services you sell and while depositing this
tax you can take credit of service tax paid by you on services used as inputs.
This cascading benefit shall also be available in case of GST.

4. Here is how set off works in case of GST

IGST payments can be set off against – IGST, CGST, SGST on inputs CGST
payments can be set off against – IGST and CGST on inputs SGST payments can
be set off against – IGST and SGST on inputs.

5. What are the GST Tax Rates in India?

 Though GST was out looked as One Nation, One Tax, and One Rate but the
latter part could not be successfully implemented. Numerous reason contributed
to the same such as economic disparities in India, people’s attitude to accept
change, the feasibility of merging existing varied tax rates into one etc. As a
result Goods and Service Tax was introduced in India with different tax rates.

The GST Tax Rates for Composition Taxpayers are-

 1% – For Traders and manufacturers

 5% – For Suppliers of Food and Beverages Services (Restaurants etc.)

The GST Tax Rates prescribed for Goods are-

 0.25%
 3%
 5%– Coal, Household necessities, Cashew, Ice, Atta Chakki, Hearing aids,
Medicines,, etc
 12%- Books, Notebooks, Intraocular Lenses, Processed food, Ketchup, Playing
Cards, and Computer, etc
 18%- Aluminium foil, CCTV, Set Top Box, Swimming Pools, Kajal stick, Printer
(without multifunctions), Toothpaste, soap, hair oil,, and industrial goods, etc
 28%- The highest tax rates for goods under GST applies on products like Luxury
bikes, cars, cigarette, aerated drinks, air conditioner, refrigerator, etc.

Also, the cess has also been implemented for some categories. For Services, the
prescribed GST Tax Rates are-

 5%- Applicable on services like rented cabs, railways, goods transport services,
advertisements in print media, specified job work, etc
 12%- Popular Services covered under this category are business class air travel,
accommodation with tariff ranging between Rs 1,000 to Rs 2,500 or non-air-
conditioned restaurants
 18%- This is the most widely applicable rate for services. It applies to Outdoor
catering, Specified construction services + on all others for which a rate has not
been prescribed specifically. I.e., it is a general rate for taxation of services under
GST
 28%- The highest tax rate applies to luxuries like luxurious hotels, go-karting, race
clubs, entertainment entries like amusement parks, gambling, etc.
 The rates have kept changing since the introduction of GST and are supposed to evolve
more over time. More harmonization in rates can be witnessed in the next financial year,
but the dream of One Rate is yet far to be fetched.

Basics of Accounting
Basic accounting concepts used in the business world encompass revenues, expenses,
assets, and liabilities. Accountants track and record these elements in documents like
balance sheets, income statements, and cash flow statements.

Some key features of accounting:

 Accounting principles
These help ensure consistency, transparency, and efficiency in accounting processes.
 Financial accounting
This helps companies make informed financial decisions, comply with legal regulations,
and attract investors.
 Matching principle
This principle states that expenses should be recorded and matched to revenues in the
same accounting period.
 Full disclosure principle
This principle requires companies to disclose all relevant information in their financial
statements, including assets, liabilities, revenues, and expenses.
 Cost principle
Also known as the historical cost principle, this principle requires assets to be recorded
at their cash value when they are acquired.
 Expense accounting
This helps companies understand their costs, make pricing decisions, and allocate
resources.
 Accrual principle
This principle states that transactions should be recorded during the accounting period
in which they occur, regardless of when the cash flow is received.
 Budgeting
This helps companies prepare for the future by creating a plan for how much they intend
to spend in the upcoming period.

Accounting principles
 Accounting principles are the rules and procedures that businesses and other entities must
adhere to when reporting financial data and information. Typically, accounting principles
are based on underlying concepts and assumptions and provide a framework for
classifying and interpreting financial data based on GAAP.

They are important because they help maintain accurate and consistent accounting records
and aid all stakeholders in making informed decisions.

 Accounting principles, based on GAAP, are a set of rules that govern the preparation and
reporting of financial data.

 The main advantage of accounting principles is that they provide a solid framework for
preparing accurate, consistent and error-free accounting data. This helps stakeholders
compare financial data over the years and other companies.

 Accounting principles can be misinterpreted, as different accounting principles may be

read and applied differently.

 Accounting principles are important because they help record financial data accurately and
aid legal compliance.

 The main difference between accounting principles and concepts is that principles are
specific sets of regulations, whereas concepts are underlying assumptions that, in turn,
guide accounting principles.

Importance of accounting principles

There are several reasons why accounting principles are important when recording
financial data.

1. As mentioned above, by using set rules, accounting principles can help record
consistent, standardised and accurate data. This helps stakeholders compare
financial performance over the years and with different companies.
2. Accounting principles can help detect errors, increasing the accuracy of the data
recorded.
3. Accounting principles can also ensure that the data recorded is in compliance with
the law of the country and can be used in case of legal issues or actions.

Basics of Tally
Accounting software, such as tally helps you to simplify, integrate, and streamline all your
business transactions in an easy and cost-effective manner. Tally ERP 9 is the latest
version of Tally, which comes in various enhancements to make handling and processing
of business transactions even easier and quicker. It can handle the accounts of more than
one company simultaneously. It is very simple to use and allows you to enter data in
various formats. In addition, you can view information of any period, compare data across
companies and financial periods, maintain account details and generate reports.

Features of Tally
Tally is an accounting software that offers a variety of features
 Accounting reports: Tally can generate accounting reports and statements to help
businesses make strategic decisions.

 Inventory reports: Tally can generate reports on inventory movements and stock
levels, and users can set up inventory groups and categories.

 Payroll management: Tally can help businesses manage employee details and process
employee salaries.

 Invoicing: Tally can automatically manage bills receivables and payables, and users
can pre-set details to reduce repetitive data entry.

 Analytical reports: Tally can help accountants look at problems from different angles
to help clients make better business decisions.

 Data management: Tally can help users import, synchronize, and repair data.

 GST filing: Tally can help with accurate GST filing.

Tally is used by businesses of all sizes to carry out their daily accounting activities,
including making the final balance sheet. It can also help reduce errors compared to
manual accounting.

Importance of Tally
Tally is an accounting and business management software that is important for businesses
because it helps with:

Inventory Uploading
Inventory Upload enables you to bulk edit more than one SKU On Hand value by
uploading a CSV file containing your changes. NOTE: This process is only for 3PLs.
Child accounts are not able to update their inventory using this process.

Types of inventory-
 Under the umbrella of inventory, there are several types to consider. Here are some
of the different types of inventory:

Raw materials inventory

Raw materials inventory refers to the goods used to create a company's product or
inventory. In other words, they're the materials needed to produce various goods. Raw
materials can be anything from wood and nails to create a piece of furniture or flour, eggs
and butter used to make a product for a bakery. The cost of these inventory parts is
reported as raw materials inventory on a company's balance sheet.

Work-in-progress inventory

Work-in-progress inventory refers to goods that aren't yet completed or fully

produced. Examples of this type of inventory include chocolate that still needs icing in a
chocolate factory, shoes that have yet to be dyed and essential oils that have yet to be
bottled by a wellness manufacturer.

Finished goods inventory

Finished goods refers to products that are ready to be sold by a company. These
goods have completed the production cycle. Finished goods have previously consisted of
raw materials and have also been works-in-progress. Examples of finished goods
inventory include finished baked goods in a bakery, completed t-shirts by a clothing
designer and a completed house by a home builder.

How to evaluate inventory –

In order to evaluate inventory, you should understand how inventory and cost of
goods are related. For starters, sold inventory becomes reported under costs of goods sold
on a company's income statement. When inventory costs decrease, the cost of goods sold
(COGS) lowers. There are three methods used to determine the cost of goods sold.

They are as follows:

First In, First Out (FIFO) method

The FIFO method stipulates that the goods that are purchased first are the first to be
sold, used or disposed of. This concept is beneficial for businesses because the older the
goods are, the higher they risk becoming outdated and the longer a company will have to
pay for their storage.

By selling the oldest items first, a company is more readily available to stock newer
items. In addition, depending on the item, the longer it's kept around, the more perishable
it can become. For example, if a grocery store is selling avocados, they should sell the
ones that arrived at their store first in order to avoid them becoming moldy and selling the
moldy avocados to customers. All in all, if the FIFO method is not used, it can affect a
company's profit margin. Here are the steps to evaluate inventory and cost of goods sold
using this method:

1. Determine a start and end date

Determine how much inventory you have at the start date and again at the end date
you have selected. For example, you could say you have a certain number of shirts on
January 1 and by the end of your COGS calculation, you might have a different amount
by February 1. Therefore, January 1 and February 1 would be your start and end dates,
respectively.

2. Find out the cost you paid for these goods

Once you've taken inventory, refer to your invoices and determine how much you
paid for these goods. Using the example above, let's say you added to your inventory by
purchasing 10 shirts for $10 each on Monday and another 10 shirts for $15 each on
Friday. Then let's say you sold 15 shirts by Sunday.

3. Calculate COGS

Determine the cost of goods sold by subtracting the amount sold from your
inventory starting with the goods that were sold first. You can then multiply them by the
purchase cost. For example, the COGS for the example above would be (10 x $10) + (5 x
$15) = $175. Therefore, your COGS would be $175.

Average Inventory Cost method

Also known as the weighted-average method, the average inventory cost method
uses the average of all inventory purchased to determine the COGS.

Here are the steps for calculating COGS using this method:

1. Determine the average cost of purchased inventory

In order to do this, take the sum of all inventory purchase costs for one type of
product and divide it by the number of purchased products. This will result in the average
cost. For example, if you spent $10 and then $15, your average cost of purchased
inventory would be ($10 + $15) / 2 = $12.50.

2. Determine the average cost of goods you produced

If your company produces its own inventory using various raw materials, use the
following equation:

total cost / total inventory units = average cost

3. Count your inventory

Count the amount of inventory your company has at the start date as well as the
end date. Multiply the average cost by this inventory difference.

4. Calculate the COGS

For example, let's say the total you spent on shirts is $12.50 x 10 shirts = $125. If
you sold 5 shirts, the total COGS using this method would be $62.50 because $12.50 x 5
is $62.50.

First In, Last Out (FILO) method

In this method, the goods that were purchased first are the last to be sold. For
example, if you're selling pants but you keep stacking newly purchased pants at the top of
the shelf, the pants at the bottom of the shelf (the ones purchased first) are staying at the
bottom and will be purchased last so long as this process continues. This method is the
same as the Last In, First Out (LIFO) method.

Here is how to use it to determine your COGS:

1. Determine your most recent purchases

Because the FILO method stipulates that the most recently purchased goods will be
sold first, it's important to take inventory on this stock.

2. Find the purchase cost

Determine how much you paid for these goods via your invoices. For example, let's
say you started with an inventory of 10 pants for $2 on Monday and another 10 pants for
$4 on Friday. By Sunday, you sold 15 pants.

3. Take the sum

To do this, add together the cost of each set of goods you sold. For example, with
the 10 pants you purchased for $2, you'd get $20 because 10 x $2 = $20. These pants
were the ones sold first and will be used since we're calculating COGS using the FILO
method. After this, take the 5 pants purchased for $2 each and get $10 because 5 x $2 is
$10. These pants were purchased last. Add the $20 to $10 to get a COGS of $30.

Percentage Declaration
In mathematics, a percentage is a number or ratio that can be expressed as a
fraction of 100. If we have to calculate percent of a number, divide the number by the
whole and multiply by 100. Hence, the percentage means, a part per hundred. The word
per cent means per 100. It is represented by the symbol “%”.
Examples of percentages are:

 10% is equal to 1/10 fraction

 20% is equivalent to ⅕ fraction
 25% is equivalent to ¼ fraction
 50% is equivalent to ½ fraction
 75% is equivalent to ¾ fraction
 90% is equivalent to 9/10 fraction

Percentages have no dimension. Hence it is called a dimensionless number. If we say,

50% of a number, then it means 50 per cent of its whole.

Percentages can also be represented in decimal or fraction form, such as 0.6%, 0.25%,
etc. In academics, the marks obtained in any subject are calculated in terms of percentage.
Like, Ram has got 78% of marks in his final exam. So, this percentage is calculated on
account of the total marks obtained by Ram, in all subjects to the total marks.

Percentage Formula
To determine the percentage, we have to divide the value by the total value and
then multiply the resultant by 100.

Percentage formula = (Value/Total value) × 100

Example: 2/5 × 100 = 0.4 × 100 = 40 per cent

How to calculate the percentage of a number?

To calculate the percentage of a number, we need to use a different formula such
as:
P% of Number = X
where X is the required percentage.
If we remove the % sign, then we need to express the above formulas as;
P/100 * Number = X

Example: Calculate 10% of 80.

Let 10% of 80 = X
10/100 * 80 = X
X=8

Percentage Increase and Decrease

The percentage increase is equal to the subtraction of the original number from a
new number, divided by the original number and multiplied by 100.

% increase = [(New number – Original number)/Original number] x 100

where,

increase in number = New number – original number

Similarly, a percentage decrease is equal to the subtraction of a new number from

the original number, divided by the original number and multiplied by 100.

% decrease = [(Original number – New number)/Original number] x 100

Where decrease in number = Original number – New number
So basically if the answer is negative then there is a percentage decrease.

GST Returns
A GST return is a form that a taxpayer registered under the Goods and Services
Tax (GST) law must file for every GSTIN registered. Also, the status of the GSTIN
should be active if the taxpayer regularly files the returns. You can verify the same using
our GST search tool.

Did you know that there are 22 types of GST returns prescribed under the GST
Rules? Out of them, only 11 GST returns are active, 4 suspended, and 8 view-only in
nature. The number and types of GST return that a business/professional must file is
based on the type of taxpayer registered. These types include regular taxpayer,
composition taxable persons, e-commerce operators, TDS deductor, non-resident
taxpayer, Input Service Distributor(ISD), casual taxable persons, etc.

Types of GST Returns-

GSTR-1

GSTR-1 is the return to be furnished for reporting details of all outward supplies of
goods and services made. In other words, it contains the invoices and debit-credit notes
raised on the sales transactions for a tax period. GSTR-1 is to be filed by all normal
taxpayers who are registered under GST, including casual taxable persons.

Any amendments to sales invoices made, even pertaining to previous tax periods,
must be reported in the GSTR-1 return by all the suppliers or sellers registered under
GST.

GSTR-2
GSTR-2 is currently a suspended GST return, that applied to registered buyers to
report the inward supplies of goods and services, i.e. the purchases made during a tax
period.

The details in the GSTR-2 return had to be auto-populated from the GSTR-2A. Unlike
GSTR-2A, the GSTR-2 return can be edited. GSTR-2 is to be filed by all normal
taxpayers registered under GST. However, the filing of the same has been suspended ever
since September 2017.

GSTR-3
GSTR-3 is again currently a suspended GST return. It was a monthly summary
return for furnishing summarized details of all outward supplies made, inward supplies
received and input tax credit claimed, along with details of the tax liability and taxes
paid.

This return would have got auto-generated on the basis of the GSTR-1 and GSTR-2
returns filed. GSTR-3 is to be filed by all normal taxpayers registered under GST,
however, the filing of the same has been suspended since September 2017.

GSTR-4
GSTR-4 is the annual return that was to be filed by the composition taxable
persons under GST, by 30th April of the year following the relevant financial year. It has
replaced the erstwhile GSTR-9A (annual return) from FY 2019-20 onwards.

Prior to FY 2019-20, this return had to be filed on a quarterly basis. Thereafter, a

simple challan in form CMP-08 filed by 18th of the month succeeding every quarter
replaced it.
The composition scheme is a system in which taxpayers dealing with goods and
having a turnover up to Rs.1.5 crores can opt into and pay taxes at a fixed rate on the
turnover declared. Further, the service providers can avail a similar scheme as per CGST
(Rate) Notification 2/2019 dated 7th March 2019 if their turnover is up to Rs.50 lakh.

Preparation and Planning of E-way Bill

An e-way bill is a permit needed for inter-state and intra-state transportation of goods
worth more than Rs. 50,000. It contains details of the goods, the consignor, the recipient
and the transporter. It can be electronically generated through the GSTN.

The e-way bill has been made mandatory for inter-state supplies from April 1, 2018 and
for intra-state supplies from April 25, 2018 in certain states (Arunachal Pradesh, Madhya
Pradesh, Meghalaya, Sikkim, and Puducherry).

The following updates have been made for a few states:

Delhi
 As of 16th of June, 2018, e-Way bills are only required for transporting goods worth
more than Rs. 1 lakh, within Delhi, i.e. intra-state movement.
 An e-Way bill isn’t required for movement of goods that involve registered sellers and
unregistered customers, within the state of Delhi.

West Bengal

 As of 6th June, 2018, e-Way bill is required to be generated only when transporting
goods worth more than Rs. 1 lakh, within the state of West Bengal.

Tamil Nadu

 As of 2nd June, 2018, e-Way bill is required to be generated only when transporting
goods worth more than Rs. 1 lakh, within the state of Tamil Nadu.

When Should E-Way Bill be issued

E-Way bill will be generated when there is a movement of goods in a vehicle/
conveyance of value more than Rs. 50,000 (either each Invoice or in aggregate of all
invoices in a vehicle/conveyance).

 In relation to a ‘supply’
 For reasons other than a ‘supply’ ( say a return)
 Due to inward ‘supply’ from an unregistered person

For this purpose, a supply may be either of the following:

 A supply made for a consideration (payment) in the course of business

 A supply made for a consideration (payment) which may not be in the course of
business
 A supply without consideration (without payment) In simpler terms, the term
‘supply’ usually means a:
1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. Barter/Exchange – where the payment is by goods instead of in money

Generation and online payment of diffrent GST Challans

For businesses and professionals, paying GST (Goods and Services Tax) is part of
meeting tax requirements in the supply chain. Hence, it is important to know the GST
payment process step-by-step. The government has made it easier by providing both
online and offline options for making GST payments, giving taxpayers flexibility.
To pay online, log in to the GST portal, go to the ‘Payment’ section, generate a challan,
choose the tax period, and pay using internet banking, debit/credit card, or other digital
payment methods. On the other hand, the offline method allows one to go to a bank
branch, generate a challan and pay GST dues in person.

Online mode refers to those payments made through internet banking. Taxpayers can pay
through these modes with or without logging in to the GST portal. There is a selected list
of banks that the GST portal allows taxpayers to pay from. They must choose the bank
and make GST payments online using a card or net banking instantly.

Accounting of GST Transaction

Accounting under GST is more simple compared to the erstwhile VAT and excise.
However, one must understand and pass accounting entries in the books of accounts
regularly. It is crucial so as to ensure minimal or no mismatches between the books of
accounts and the GST returns, such as GSTR-1, GSTR-2B and GSTR-3B.

Transactions Entries Under GST

The implementation of a unified GST tax has replaced numerous indirect tax levies. The
Goods & Services Tax (GST) was introduced on July 1, 2017, and since its inception, the
GST Council has been diligently facilitating regulations for smoother business operations.
Simplified GST entries offer lucidity in transactional records.

In India, the Customs and Excise Act constitutes a thorough and inclusive framework for
taxation across various categories. It encompasses tax deductions on all value additions,
mirroring the corresponding entries for GST in journals, purchases with GST, or sales
with GST. The GST journal entry encompasses various transactions such as imports,
refunds, reverse charge transactions, sales, and purchases.

GST Accounting under tally ERP-9 \ Prime

TallyPrime gives you the facility to quickly set up GST rates for your stock
items, using the GST Rate Setup option. Based on the rates defined, the tax
amount is auto-calculated in the purchase invoice. These rates will not be
considered for calculating the tax on sales.

You must enable GST in your company to provide the GST rates. You can also
set the GST rates for a particular price range or slab rate for multiple stock items.
Alternatively, you can define the tax rate for each stock item from the stock item
master.

Diffrence between Tally ERP-9 & Tally Prime

Features Tally ERP 9 Tally Prime
 In Tally.ERP 9, you are With TallyPrime, you get the
Access Tally required to determine the path freedom to access the data of
Data of the data in order to access the company data from any path,
company‟s data. drive, or even remotely.

You are needed to make at least

You can easily see all your
3 clicks for launching an account
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in Tally.ERP 9. In Tally‟s
Accounts TallyPrime. This involves groups,
Gateway > Display > List of
voucher types, ledgers, etc.
Accounts.

In Tally.ERP 9, you can do In TallyPrime, you can easily

Multi-Tasking in
multi-tasking by opening multi-task or check open reports
Tally
various instances. with the feature of GoTo.

You are required to employ

For copying and pasting,
Shortcut keys for copying &
Copy/Paste in TallyPrime providesGlobal
pasting in Tally.ERP
Tally keys.CTRL+C
9.CTRL+ALT +C
CTRL +V
CTRL+ALT +V

In Tally.ERP 9, you are In TallyPrime, you can configure

Supplementary required to fill in the required information as „permanent‟ so
Details Supplementary information you obtain only those details in
every single time. Supplementary information.

With TallyPrime, you get the

option of „optimizing printing to
Printing Invoice There is a high cost of printing
save paper.‟ This helps you save
in Tally invoices in Tally.ERP 9.
money on printing, paper, &
other costs.

TallyPrime renders three choices

This feature is accessible in 3 in sales vouchers or other
Change Voucher
different locations, so navigation vouchers – Item Invoice,
Mode
is complex. Accounting Invoice, and As
Invoice.

With TallyPrime, you can readily

To update the details of a
update the details of a specific
Update details in specific item, you need to go
item by employing the „More
Transaction through all the items in
Details‟ functionality in
Tally.ERP 9.
Transactions.
 Composition Scheme
Composition Scheme is a simple and easy scheme under GST for taxpayers. Small
taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore.

You can know whether a taxpayer opted for a composition scheme or not using the GST
search tool. Enter any GSTIN and check the ‘Taxpayer Type’ column in the results to
know whether the taxpayer is a regular taxpayer or opted for the composition scheme.

Advantages of Composition Scheme

The following are the advantages of registering under composition scheme:

 Lesser compliance (returns, maintaining books of record, issuance of invoices)

 Limited tax liability
 High liquidity as taxes are at a lower rate

Disadvantages of Composition Scheme

Let us now see the disadvantages of registering under GST composition scheme:

 A limited territory of business. The dealer is barred from carrying out inter-state
transactions
 No Input Tax Credit available to composition dealers
 The taxpayer will not be eligible to supply non-taxable goods under GST such as
alcohol and goods through an e-commerce portal.

GST Laws Releted to Penalty

An offender not paying tax or making short-payments has to pay a penalty of 10% of the
tax amount due, subject to a minimum of Rs.10,000. Therefore, the penalty will be high
at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate
fraud.

Revised Process in GST

In the business world, mistakes happen, and sometimes, invoices issued under Goods and
Services Tax (GST) may need to be corrected. Once a return is filed, it can be difficult to
adjust transactions, especially invoices. Whether it’s a billing error or a change in
circumstances, fixing these bills is important. Let’s look at how invoices are adjusted
under the GST regime.

Benefits of Revised Process

 Enhanced Accuracy and Compliance
 The primary advantage of the revised GSTR-3B is the ability to correct errors post-
submission. This feature significantly enhances the accuracy of returns, ensuring that
businesses report their tax liabilities and credits accurately. By allowing corrections, the
revised GSTR 3B form helps maintain compliance and reduces the risk of penalties
associated with inaccuracies.

 Reduced Penalties and Interest

Under the previous regime, errors in GSTR-3B could lead to hefty penalties and interest
charges. The revised provisions mitigate this issue by enabling taxpayers to rectify
mistakes within a specified period. This flexibility can substantially reduce the financial
burden on businesses, promoting a more forgiving compliance environment.

 Improved ITC Matching

The re-filing option also facilitates better matching of Input Tax Credit (ITC) between
suppliers and recipients. Accurate ITC claims are crucial for businesses to optimize their
tax liability. By allowing corrections, the revised GSTR-3B ensures that ITC claims are
more accurate, thereby improving the overall ITC matching process and reducing
disputes between suppliers and recipients.

 Ease of Reconciliation

Monthly reconciliation of GSTR-3B with GSTR-2A/2B (auto-drafted purchase data) is

essential for businesses to claim correct ITC. The ability to re-file returns makes this
reconciliation process smoother and more accurate. Businesses can address mismatches
and discrepancies promptly, ensuring that their returns reflect the true state of their
transactions

 Increased Transparency

The revised GSTR-3B promotes greater transparency in tax reporting. By allowing

businesses to correct their returns, the GST system becomes more transparent, fostering
trust between taxpayers and tax authorities. This transparency is essential for creating a
robust and fair tax environment.