TALLY ERP9

ACCOUNTING
Accounting is the art of Identifying, classifying, recording,
summarizing, analyzing, interpreting business transaction of
financial nature and communicating the required information
relating to the economic event of an organization to the
interested user.
 User:- Proprietor, Creditor, Investor, Government employee,
Lender.
 Accounting mean the complete process of :-
 Recording financial transaction
 Preparation of final statement

Accounting Process
Financial transaction /event

Recording Journal Book

Classifying
Account of similar nature
Trial
(Ledger) balance(Debit=Credit)
Profit & Loss (inquired)
Financial
statement Summarizing Balance sheet(financial
Income position
statement Of business)
Trading A/C
Profit & Loss Analyzing

Communicating
To end user
Accounting process
Accounting process divides in to two parts:-
i. Book Keeping:- This involve just recording basic
transaction in proper
ii. Accounting:- this involves preparation of financial
statement based on the basic book a/c applying the
principal of accounting (final state).
Object of Accounting
1. Maintenance record of business transaction.
2. Calculation of profit and Loss.
3. Depiction of financial position.
4. Providing Accounting information to the end user.

TYPES OF ACCOUNTING
1. Economic development & technology improvement advent
the company form of business. This give rise more branches
of Accounting.
2. There are three major type of Accounting
i. Financial Accounting
ii. Cost Accounting
iii. Management Accounting
 Financial Accounting:-The purpose of this branch of
Accounting is to keep a record of all financial transaction
so that
 The profit earned and loss sustained by the
business during an Accounting period can be
worked out.
 The financial position of the business at the end
of the accounting period can be ascertained.
 The Financial information required by the
management and other interested parties can be
provided.
 Cost Accounting:- The purpose of cost Accounting is to
analyze the expenditure so as to ascertain the cost of
various product . manufacturer by the
Firm and fixed the prices.

It also helps to controlling the Cost and providing

necessary costing information to management for
decision making.
 Management Accounting:-The purpose of management
Accounting is to alsit the management in taking rational
policy. Decision and to evaluate the impact of its
decision and action.

TYPES OF ACCOUNT

Accounts are classified into

1. Personal a/c
i. Natural a/c :-accounts related to any
human beings(Ram a/c)
ii. Artificial a/c :-accounts related to
company(XYZ company a/c)
iii. Representative a/c :-Not related to
natural/artificial but represent a class,
group section.
(prepaid expense, outstanding salary)

2. Impersonal A/c:- All accounts other than

personal A/c.
i. Real A/c :-Account related to Assets firms
(but not debt)land, building, cash, bank
A/c.
ii. Nominal A/c :-Representing Expenses,
income, gains, Losses.
a. Sales
b. Purchase
 Nominal A/c is shown in profit & loss statement while
other Accounts are show in balance sheet.
 i. Land(R) iv. Cash in Bank(R) vii. Plant
machinery(R)
ii. Sale(N) v. Salary paid (N) viii. Cash in
hand (R )
iii. Building(R ) vi.VAT payable(P) ix. Excise
duty payment(p)
RULE OF ACCOUNTING
CONVENTIONAL METHODS OF ACCOUNTING

PERSONALA/C REAL A/C NOMINAL

A/C
DEBIT The receiver what comes in Expense/loss
CREDIT The giver what goes out Income/profit

MORDERN METHODS OF ACCOUNTING

DEBIT CREDIT
ASSET+ ASSET-
EXPENSE+ EXPENSE-
CAPITAL- CAPITAL+
LIABILITY- LIABILITY+
INCOME- INCOME+

SYSTEM OF ACCOUNTING

SINGLE ENTRY SYSTEM:-A single entry book-keeping system is a method

of transaction entry relying on a one sided accounting entry to maintain
financial information.
DOUBLE ENTRY SYTEM:-Both aspect debit & credit of each & every
transaction are fully recorded. We normally apply double entry system.

TERMINOLOGY OF ACCOUNTING
1. TRANSACTION:-A person is dealing in money or money’s worth are
term as transaction.It is concerned with two businesses involving
transfer of goods and services.
Ex:- sale & purchase of goods, payment to creditor, receipt from debtors,
purchase or sale of fixed assets.
 2. VOUCHER:-Voucher is a document which established that a
transaction has taken place. It is an evidence on the basis of which
an entry is recorded in the books of account.
Ex:-cash memo, invoice/bill, and receipt.
3. DEBTORS:-Debtors is a person who owes amount to the enterprises
on account of credit sale of goods and services.
4. CREDITORS:-Creditor is a person to whom the enterprise owes an
amount on the account of credit purchase of goods and services.
5. ASSETS:-Assets are the property or legal rights owned by an
entity(enterprise, organization, individual. Anything which enables
the entity to get cash or benefits in the future is an asset.
Ex:-stock of goods, cash, furniture, machine, building, and factory.

It is of two types
i. FIXED ASSETS:-Fixed assets are those assets which are
purchase by the enterprises not for sale but for the purpose of
increasing the earning capacity of the business.
Ex:- land, building, plant, machinery, computer, goodwill,
trademark.
ii. CURRENT ASSETS:-Current assets are those assets of a business
which are held for short term with a purpose to sale or convert
them into cash.
Ex:- unsold goods, debtors, bank balance(cash at bank),cash in
hand.

LIABILITY:-Liability means the amount which the enterprise owes either

to the outsiders or to the proprietor.

It is are two types

i. FIXED LIABILITY:-These are the liability which are payable
after a period of 12months from the end of financial year.
Ex:-long term loan, debentures, public deposit.
ii. CURRENT LIABILITY:-These are the liabilities which are
payable within a period of 12months from the end of
financial year.
Ex:- Creditors, Bank over-drafts, short term loan.
6. CAPITAL:-It is the amount which is initially invested by the proprietor
in to business. According to the business entity concept. Proprietor
 and enterprises are two distinct body. So the capital is considered as
liability for enterprises.
7. EXPENSES:-Expense is the amount spent in order to produce and sell
the goods and services which generate revenue.
Ex:-Payment of salary, wages, rent, bill.
8. REVENUE:-revenue is the gross inflows of cash, receivables earned
by the enterprises from the sale of goods or services in its ordinary
course of business.
Income= revenue-expense
9. PROFIT:-It is surplus of of revenue of a business over its cost.

It is of two types
i. Gross profit=revenue(sale of goods)-direct cost(cost of operation)
ii. Net profit is the profit earned after the allowing all the expenses.
10. LOSS:-A loss is an excess
of expense of a period over its related revenue.
It is of two types
i. Gross profit=revenue(sale of goods)<direct cost(cost of operation).
ii. Net loss = expenses>revenue.
11.FREIGHT:- It means the cost for transporting the goods.
12.IMPORT:- Import means goods brought into the country from a
foreign country.
13.EXPORT:- It means goods sent out of the country to a foreign
country.
14. DISCOUNT:- When
customers are allow any type of reduction in price of goods by the
business it is called discount.
It is of two types
i. TRADE DISCOUNT:-It means discount allow to a customer
on the basis of quantity of goods purchase. It is not
recorded in the books of account. It encourages the sale.
ii. CASH DISCOUNT:- It means discount allow to a customer
for making timely payment. It is recorded in the books of
account.
15. REBATE:- It is reduction
in the price allowed by the seller of goods

LIST OF GROUP
1) Capital
i) Owners capital a/c
ii) Partners capital a/c
iii) Drawings a/c
2) Fixed Assets
i) Computer
ii) Land
iii) Factory
iv) Building
v) machinary
vi) Good will
3) Current asset
i) Prepaid expense
ii) prepaid rent
iii) bill receivables
iv) mutual fund
4) current liabilities

bill drawn

bill payable

cgst,sgst,igst payable

sundry creditors:- any party from whom goods purchased/bill of expense received.

Sundry debtors :-any party to whom sales made.

Loans & advances:-Loan to any party ,

Loan given in advanced.

loan & liabilities :- Loan from bank

any party from whom we take loan.

Bank accounts :- SBI Bank account

Cash in hand:- Cash a/c ,petty cash account

stock in hand:- Closing stock, opening stock

Direct expenses:-Labour charge,Power , Loading/ unloading , Carriage ,Wages ,Delivery
charges, Fuel a/c.

Indirect expenses:-Salary, Advertisement, Maintaince, Rent, stationary, bad debt, bank

charges, miscellaneous ,conveyance ,audit fees.

indirect income:-discount received, interest on investment

SHORTCUT OF TALLY ERP 9

VOUCHER SHORTCUTS
F4 CONTRA

F5 PAYMENT

F6 RECEIPT

F7 JOURNAL

F8 SALE

CTRL+F8 CREDIT NOTE

F9 PURCHASE

CTRL+F9 DEBIT NOTE

SOME OTHER SHORTCUTS

F1 SELECT COMPANY

ALT+F1 SHUT COMPANY

F2 DATE

ALT+F2 PERIOD

ALT+F3 COMPANY INFO

F11 COMPANY FEATURES

F12 CONFIGURATION

ALT+A ADD VOUCHER

CTRL+A SAVE/ACCEPT

ALT+C CREATE LEDGER/GROUP/ITEM

ALT +D DELETE VOUCHER/ MASTER

ALT+E EXPORT DATA

CTRL+E CURRENCY

ALT+H HELP SHOTCUT

ALT +I TOGGLE BETN ITEM IN ACCOUNTING INVOICE

 ALT+O UPLOAD REPORT

ALT+P PRINT A REPORT

ALT+R TO HIDE LEDGER
CTRL+R REPORT NARRATION
CTRL+U UNHIDE LEDGER
CTRL+N CALCULATOR
CTRL+O SELECT GODOWN
CTRL+V SELECT VOUCHER TYPE
CTRL+S ALTER STOCK ITEM
PAGE UP DISPLAY PREVIOUS VOUCHER

PAGE DOWN DISPLAY NEXT VOUCHER

CTRL+ENTER ALTER(LEDGER,GROUP,ITEM)
ESC EXIT ONE WINDOW
CTRL+ALT+C COPY
CTRL+ALT+V PASTE
ENTER ACCEPT
BKSP MOVE BACKWARD
SPACE DISPLAY LEDGER GROUP ITEM
ALT+X CANCEL VOUCHER

COMPANY CREATION IN TALLY

OPEN THE TALLY APP > GO TO EDUCATIONAL MODE > COMPANY
INFO > CREATE COMPANY > FILL THE COMPANY DETAILS >
ACCEPT

SELECT COMPANY:- It is used to open the existing company in the tally.

GOT > COMPANY INFO(ALT+F3 ) > SELECT COMPANY > CHOOSE
THE COMPANY > OK

SHUT COMPANY: - It is used to shut the door of the company.

GOT > COMPANY INFO(ALT+F3 ) > SHUT COMPANY > CHOOSE THE
COMPANY > OK

ALTER COMPANY:- It is used to change the data and delete the company.
GOT > COMPANY INFO(ALT+F3 ) > ALTER COMPANY > CHOOSE
THE COMPANY > EDIT THE DATA / ALT+D (DELETE) >ACCEPT

TALLY VAULT:-It is used to make password protected company.

GOT > COMPANY INFO(ALT+F3 ) > change tally vault > CHOOSE THE
COMPANY > OK >CREATE NEW PASSWORD >RE-ENTER PASSWORD
> OK

It creates number based company.

Open it with the help of password.
REMOVE THE TALLY VAULT PASSWORD
GOT > COMPANY INFO(ALT+F3 ) > SELECT THE PASSWORD
PROTECTED COMPANY > OPEN IT WITH THE PASSWORD > ALT+F3
>CHANGE TALLY VAULT >SELECT THE COMPANY > PUT THE
CURRENT PASSWORD > REMAIN BLANK THE NEW PASSWORD > OK
CREATE BACKUP OF A COMPANY
GOT > ALT+F3 >BACKUP >DEFINE THE DESTINATION FOLDER >
SELECT THE COMPANY >ACCEPT

RESTORE COMPANY
GOT >ALT+F3 >RESTORE > CHOOSE COMPANY >ACCEPT >OK
`
CREATE MASTER IN TALLY
GROUP:-Group is the collection of ledgers of the same natures. In tally there are
28 groups present.
GOT > ACCOUNT INFO >GROUPS.

LEDGER :-A ledger is the actual account head to identify your transaction and are
used in all accounting vouchers. ex:-purchase, sales etc.
GOT > ACCOUNT INFO > LEDGER
SINGLE LEDGER
MULTIPLE LEDGER
CREATE :- It helps to create ledgers.
DISPLAY :-It helps to display.
ALTER :- It helps to change and delete the ledgers.

VOUCHER TYPES
This command is used to create user define voucher.
GOT > ACCOUNT INFO > VOUCHER TYPES >NAME OF VOUCHER >
SELECT THE TYPE OF VOUCHER >VOUCHER NUMBERING >
ADVANCE CONFIGURATION > OK

CREATION OF INVENTORY MASTERS

 STOCK GROUP:- It helps in classification to stock items according to their
behavior.
Similar stocks can be grouped under the stock group according to their brand and
product type.
GOT > INVENTORY INFO > STOCK GROUP >
 Single Stock Group
 Multiple Stock Group
i. CREATE
ii. DISPLAY
iii. ALTER

UNITS OF MEASURE:- It helps to measure the quantity of an items.it is of two

types :-i. simple unit
ii. Compound unit
GOT > INVENTORY INFO >UNITS OF MEASURE >SIMPLE/COMPOUND
>SYMBOL >FORMAL NAME >UQC >ACCEPT
STOCK ITEMS :-It refers to goods that you manufacture or trade. It is the
primary inventory entity.
GOT > INVENTORY INFO >STOCK ITEM
 Single Stock item
 Multiple Stock item
iv. CREATE
v. DISPLAY
vi. ALTER

VOUCHER :-A Voucher is a document that contains details of a financial transaction and is
required for recording the same into the books of accounts.

CONTRA :-It is used for all the banking transaction. such as

Cash to bank(deposite)
Bank to cash(withdraw)
Bank to Bank(transfer)
PAYMENT:-It is used in purchase of assets and payment of expenses.
RECEIPT:-It is used in sale of assets and receipt of revenue.
JOURNAL:-It is used in settlement of adjustment entry. like purchase of assets in credit,
year end adjustment like donation , samples, accrued income etc.
SALES:- It is used in sale of goods in credit to the customers.
PURCHASE:-it is used in purchase of goods in credit from the dealers.

METHOD OF ADJUSTMENT
NEW REF:-PURCHASE/SALE
AGST REF:-PAYMENT/RECEIPT
ON ADVANCE:-ADVANCE PAYMENT/RECEIPT
ON ACCOUNT: ON BEHALF PAYMENT/RECEIPT
MODE OF INVOICE
ACCOUNTING INVOICE(ALT+I)
PARTICULARS:-SERVICE

ITEM INVOICE(ALT+I)
NAME OF ITEM:-GOODS
TYPES DEALER UNDER GST:-The classification of dealers under GST is of

GST(GOODS & SERVICES TAX)

GST is an Indirect Tax which has replaced many Indirect Taxes
in India. The Goods and Service Tax Act was passed
in the Parliament on 29th March 2017. The Act came into effect
on 1st July 2017; Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.
In simple words, Goods and Service Tax (GST) is an indirect
tax levied on the supply of goods and services. This law has
replaced many indirect tax laws that previously existed in India.
GST is one indirect tax for the entire country.B
Before Goods and Service Tax, the pattern of tax levy was as
follows:
 Multi-stage
There are multiple change-of-hands an item goes through
along its supply chain: from manufacture to final sale to the
consumer.
Let us consider the following case:
Purchase of raw materials
Production or manufacture
Warehousing of finished goods
Sale to wholesaler
Sale of the product to the retailer
Sale to the end consumer
 Goods and Services Tax is levied on each of these stages
which makes it a multi-stage tax.

Value Addition

The manufacturer who makes biscuits buys flour, sugar and

other material. The value of the inputs increases when the sugar
and flour are mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing
agent who packs large quantities of biscuits and labels it. That is
another addition of value after which the warehouse sells it to
the retailer.
The retailer packages the biscuits in smaller quantities and
invests in the marketing of the biscuits thus increasing its value.
 GST is levied on these value additions i.e. the monetary value
added at each stage to achieve the final sale to the end
customer.
The manufacturer who makes biscuits buys flour, sugar and
other material. The value of the inputs increases when the sugar
and flour are mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing
agent who packs large quantities of biscuits and labels it. That is
another addition of value after which the warehouse sells it to
the retailer.
The retailer packages the biscuits in smaller quantities and
invests in the marketing of the biscuits thus increasing its value.
GST is levied on these value additions i.e. the monetary value
added at each stage to achieve the final sale to the end
customer.

Advantages Of GST
GST has mainly removed the Cascading effect on the sale
of goods and services. Removal of cascading effect has
impacted the cost of goods. Since the GST regime
eliminates the tax on tax, the cost of goods decreases.
GST is also mainly technologically driven. All activities
like registration, return filing, application for refund and
response to notice needs to be done online on the GST
 Portal; this accelerates the processes.

What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST &
IGST.

 CGST: Collected by the Central Government on an intra-state

sale (Eg: transaction happening within Maharashtra)
 SGST: Collected by the State Government on an intra-state
sale (Eg: transaction happening within Maharashtra )
 IGST: Collected by the Central Government for inter-state sale
(Eg: Maharashtra to Tamil Nadu)
In most cases, the tax structure under the new regime will be
as follows:

Transaction New Old Regime

Regime

Sale within the CGST + VAT + Central Revenue will be shared equally between the
State SGST Excise/Service tax Centre and the State

Sale to another IGST Central Sales Tax + There will only be one type of tax (central) in
State Excise/Service Tax case of inter-state sales. The Centre will then
share the IGST revenue based on the destination
of goods.

Tax Laws before GST

In the earlier indirect tax regime, there were many indirect
taxes levied by both state and centre. States mainly collected
taxes in the form of Value Added Tax (VAT). Every state had a
different set of rules and regulations. Interstate sale of goods
was taxed by the Centre. CST (Central State Tax) was applicable
in case of interstate sale of goods. Other than above there were
many indirect taxes like entertainment tax, octroi and local tax
that was levied by state and centre. This led to a lot of
overlapping of taxes levied by both state and centre. For
example, when goods were manufactured and sold, excise duty
was charged by the centre. Over and above Excise Duty, VAT
was also charged by the State. This lead to a tax on tax also
known as the cascading effect of taxes. The following is the list
of indirect taxes in the pre-GST regime:
Central Excise Duty
Duties of Excise
Additional Duties of Excise
 Additional Duties of Customs
Special Additional Duty of Customs
Cess
State VAT
Central Sales Tax
Purchase Tax
Luxury Tax
Entertainment Tax
Entry Tax
Taxes on advertisements
Taxes on lotteries, betting, and gambling
CGST, SGST, and IGST has replaced all the above taxes.
However, the chargeability of CST for Inter-state purchase at a
concessional rate of 2%, by issue and utilisation of c-Form is still
prevalent for certain Non-GST goods such as: (i) Petroleum
crude; (ii) High-speed diesel; (iii) Motor spirit (commonly known
as petrol); (iv) Natural gas; (v) Aviation turbine fuel; and (vi)
Alcoholic liquor for human consumption. in respect of following
transactions only:

What changes has GST brought in?

In the pre-GST regime, every purchaser including the final
consumer paid tax on tax. This tax on tax is called Cascading
Effect of Taxes.
GST has removed this cascading effect as the tax is calculated
only on the value-addition at each stage of the transfer of
ownership.
 What is GST Registration
In the GST Regime, businesses whose turnover exceeds Rs. 40
lakhs* (Rs 10 lakhs for NE and hill states) is required to register
as a normal taxable person. This process of registration is called
GST registration.
For certain businesses, registration under GST is mandatory. If
the organization carries on business without registering under
GST, it will be an offence under GST and heavy penalties will
apply.
GST registration usually takes between 2-6 working days. We’ll
help you to register for GST in 3 easy steps.
*CBIC has notified the increase in threshold turnover from Rs
20 lakhs to Rs 40 lakhs. The notification will come into effect
from 1st April 2019.
Who Should Register for GST?
 Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service
Tax etc.)
 Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs.
10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and
Uttarakhand)
 Casual taxable person / Non-Resident taxable person
 Agents of a supplier & Input service distributor
 Those paying tax under the reverse charge mechanism
 Person who supplies via e-commerce aggregator
 Every e-commerce aggregator
 Person supplying online information and database access or retrieval
services from a place outside India to a person in India, other than a
registered taxable person

*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40

lakhs. The notification will come into effect from 1st April 2019.

Documents Required for GST Registration

 PAN of the Applicant
 Aadhaar card
 Proof of business registration or Incorporation certificate
  Identity and Address proof of Promoters/Director with Photographs
 Address proof of the place of business
 Bank Account statement/Cancelled cheque
 Digital Signature
 Letter of Authorization/Board Resolution for Authorized Signatory

What is a GSTIN?
 GSTINrefers to the unique GST identification number that every
business will be allotted. Every taxpayer will be allotted a state-wise,
PAN-based 15-digit Goods and Services Taxpayer Identification Number
(GSTIN).

Tax slab under gst ?

Services

i. 0%
ii. 5%
iii. 12%
iv. 18%
v. 28%
Goods
i. 0%
ii. 0.25%
iii. 3%
iv. 5%
v. 12%
vi. 18%
vii. 28%

HSN & SAC codes in GST

 Under GST, all goods and services supplied in India have been classified
- Goods are classified under the HSN Code and Services are classified
under the SAC Code.
 To get proper HSN/SAC code,you can follow GST RATE FINDER app.

GST 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. 1.0 crore*.

Who can opt for Composition Scheme

 A taxpayer whose turnover is below Rs 1.0 crore* can opt for
Composition Scheme. In case of North-Eastern states and Himachal
Pradesh, the limit is now Rs 75* lakh.
 As per the CGST (Amendment) Act, 2018, a composition dealer can also
supply services to an extent of ten percent of turnover, or Rs.5 lakhs,
whichever is higher. This amendment will be applicable from the 1st of
Feb, 2019. Further, GST Council in its 32nd meeting proposed
an increase to this limit for service providers on 10th Jan 2019*.
 Turnover of all businesses registered with the same PAN should be
taken into consideration to calculate turnover.

*CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5
Crores.

Who cannot opt for Composition Scheme

The following people cannot opt for the scheme-

 Manufacturer of ice cream, pan masala, or tobacco

 A person making inter-state supplies
 A casual taxable person or a non-resident taxable person
 Businesses which supply goods through an e-commerce operator

What are the 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

. What are the 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 exempt goods or goods through an e-
commerce portal.
 What is input tax credit?
 Input credit means at the time of paying tax on output, you can
reduce the tax you have already paid on inputs and pay the balance
amount.

 Here’s how-
 When you buy a product/service from a registered dealer you pay
taxes on the purchase. On selling, you collect the tax. You adjust the
taxes paid at the time of purchase with the amount of output tax (tax
on sales) and balance liability of tax (tax on sales minus tax on
purchase) has to be paid to the government. This mechanism is
called utilization of input tax credit.
 For example- you are a manufacturer: a. Tax payable on output
(FINAL PRODUCT) is Rs 450 b. Tax paid on input (PURCHASES) is Rs
300 c. You can claim INPUT CREDIT of Rs 300 and you only need to
deposit Rs 150 in taxes.

Who can claim ITC?

 ITC can be claimed by a person registered under GST only if he fulfills
ALL the conditions as prescribed.
 a. The dealer should be in possession of tax invoice
 b. The said goods/services have been received
 c. Returns have been filed.
 d. The tax charged has been paid to the government by the supplier.
 e. When goods are received in installments ITC can be claimed only
when the last lot is received.


What can be claimed as ITC?

 ITC can be claimed only for business purposes. ITC will not be
available for goods or services exclusively used for: a. Personal
use b. Exempt supplies c. Supplies for which ITC is specifically not
available.

How to claim ITC?

 All regular taxpayers must report the amount of input tax credit(ITC)
in their monthly GST returns of Form GSTR-3B.

STEP TO CALCULATE GST

1. Create a company(ALT+F3)
2. Press F11 Statutory & Taxation(F3)

Enable GST -Yes

Set alter GST-Yes

State-Odisha
Registration type-Regular
GSTIN-21AAAAA1234A1Z0
E-way bill-No
 ACCEPT

ACCEPT

Create Ledger
Got- Account info –Ledger

1) Purchase A/c U.G(Purchase Accounts)

2) Sale A/c U.G(Sale Accounts)
Statutory Information
(Is GST Applicable-
Applicable
Set/alter GST-No
Type of supply-Goods)

Tax Ledger
CGST
SGST (Ug-Duties & Taxes)
IGST

Type of duty – GST

Tax type – Central/State/integrated Respectively
Party Ledger
Creditors
1. Subham Enterprise(Intra – State)
Ug(Sundry Creditors)
2. Durga Enterprise(Inter – State)

In mailing Details
1. Fill the address of the Creditors
Such as state , pin code etc

Tax Registration details

Set alter GST –Yes

 Registration type – Regular

Subham Enterprise GSTIN – 21AARFA1466HIZL

Durga Enterprise(Bihar)GSTIN-10AACCA8464F3ZZ

Debtors
1) Biswas Enterprises(Intra-state)

GSTIN-21AACCA8464F1ZY

2) Piyush Enterprises(Inter-state)

(West Bengal GSTIN-19AACCA8464F1Z)

 Fill the address and tax registration details of debtors according to

creditors.

Inventory Management
GOT Inventory Info

1. Stock group
2. Stock item
3. Units of measure

1 .Stock group
1. Mobile Electronic Inventory Info

Group

Single Stock group

2 . Units of measurement

Inventory info Units of measure Create

i. Nos
ii. Ltr

3 . Stock item
Inventory info Stock item
single stock item
i. Samsung J7
 ii . Moto G7 Ug(Mobile Eletronic)
 Statutory information
Gst Applicable –Applicable
Set alter Gst – Yes
Type of supply – Good

Gst Details for stock item

HSN/Sac—8523
Set the HSN from rate finder app

Tax details
Taxability- taxables
Calculation type- On based value
Tax Type

Integrated Tax 18%

Central tax 9%
State tax 9% Accept

Accounting Vouchers
1. Got Accounting Vouchers
2. Purchase Voucher(F9)
Supplier Invoice No:- Ace/2/19-20
Date:-
Party A/C Name:- Subham Enterprises
3. According to purchase Entry. We can also make the rest entry like
inter-state purchase entry and intra-state &inter-state sale entry.
4. After the completion of transaction entry we must go to check
current labilities
5. STEP1:-GOT>DISPLAY>TRIAL BALANCE>CURRENT LIABILITIES.
6. STEP2:-GOT>DISPLAY>STATUTORY REPORTS>GST>
7. GSTR1-It shows GST collection on sale
8. GSTR2-It shows GST payment on purchase

GST PAYABLE TO GOVT=GST COLLECTION ON SALE – GST PAID ON

PURCHASE

GST ON SERVICE TAX

1. Create a company(ALT+F3)
 2. Press F11 Statutory & Taxation(F3)

Enable GST -Yes

Set alter GST-Yes

State-Odisha
Registration type-Regular
GSTIN-21AAAAA1234A1Z0
E-way bill-No

ACCEPT

ACCEPT

Create Ledger
Got- Account info –Ledger

1) Purchase A/c U.G(Purchase Accounts)

2) Sale A/c U.G(Sale Accounts)
Statutory Information
(Is GST Applicable-
Applicable
Set/alter GST-NO
Tax Ledger Type of supply-SERVICES)

CGST
SGST (Ug-Duties & Taxes)
IGST

Type of duty – GST

Tax type – Central/State/integrated Respectively
Party Ledger
Creditors
3. Mohan & Sons(Intra – State)
Ug(Sundry Creditors)
 4. Basant Transport(Inter – State)

In mailing Details
4. Fill the address of the Creditors
Such as state , pin code etc

Tax Registration details

Set alter GST –Yes

Registration type – Regular

Mohan & Sons GSTIN – 21AARFA1557HIZL

Basant Transport(Bihar)GSTIN-10AACCA8464F3ZZ

Debtors
3) Ace(Intra-state)

GSTIN-21AACCA8464F1ZY

4) Niit(Inter-state)

(West Bengal GSTIN-19AACCA8464F1Z)

 Fill the address and tax registration details of debtors according to

creditors.

EXPENSE LEDGERS
courier charges:-indirect expense
transportation charges:-indirect expense
 Statutory information
Gst Applicable –Applicable
Set alter Gst – Yes
Type of supply – service
Nature of Transaction :-PURCHASE TAXABLE (when purchased from intrastate dealer)

INTERSTATE PURCHASE TAXABLE ((when purchased from inter-state dealer)

TAXABILITY:-Taxable

INTEGRATED TAX:-18%

CGST:=9% , SGST:-9%
INCOME LEDGERS
ADVERTISEMENT CHARGES 1:-DIRECT INCOME
ADVERTISEMENT CHARGES 2:-DIRECT INCOME
  Statutory information
Gst Applicable –Applicable
Set alter Gst – Yes
Type of supply – service

Nature of Transaction :-SALE TAXABLE (when sale to intrastate Customer)

INTERSTATE SALE TAXABLE ((when sale to inter-state customer)

TAXABILITY:-Taxable

INTEGRATED TAX:-18%

CGST:=9%

SGST:-9%

After the filling the above information, Go to the Accounting Vouchers and invokes
purchase voucher and Sale vouchers in Accounting mode(ALT+I).
save the invoice with the application of GST.

Types of GST Returns forms

GSTR-1

 GSTR-1 is the return to be furnished for reporting details of all

outward supplies of goods and services made, or in other words,
sales transactions made during a tax period, and also for reporting
debit and credit notes issued. Any amendments to sales invoices
made, even pertaining to previous tax periods, should be reported in
the GSTR-1 return.
 GSTR-1 is to be filed by all normal taxpayers who are registered
under GST. It is to be filed monthly, except in the case of small
taxpayers with turnover up to Rs.1.5 crore in the previous financial
year, who can file the same on a quarterly basis.

GSTR-2A

 GSTR-2A is the return containing details of all inward supplies of

goods and services i.e. purchases made from registered suppliers
 during a tax period. The data is auto-populated based on data filed
by the suppliers in their GSTR-1 return. GSTR-2A is a read-only return
and no action can be taken.

GSTR-2

 GSTR-2 is the return for reporting the inward supplies of goods and
services i.e. the purchases made during a tax period. The details in
the GSTR-2 return are 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 the
inception of GST.

GSTR-3

 GSTR-3 is 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 is 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 ever since the
inception of GST.

GSTR-3B

 GSTR-3B is a monthly self-declaration to be filed, for furnishing

summarized details of all outward supplies made, input tax credit
claimed, tax liability ascertained and taxes paid.
 GSTR-3B is to be filed by all normal taxpayers registered under GST .

6. GSTR-4 / CMP-08

 GSTR-4 is the return that was to be filed by taxpayers who have

opted for the Composition Scheme under GST. CMP-08 is the return
which has replaced the now erstwhile GSTR-4. The Composition
Scheme is a scheme in which taxpayers with turnover up to Rs.1.5
crores can opt into and pay taxes at a fixed rate on the turnover
declared.
 The CMP-08 return is to be filed on a quarterly basis.
 After all the transaction > go to display> statutory reports> gst > gstr-1/gstr-2
>open the gst portal > use your log in id(www.gst.gov.in) > submit it as per
their instruction.

 After submission of GSTR 1,Go to payment vouchers and pass a entry to nil
the balance of current liabilities of the balance sheet.
 STEPS
I. First note down the amount eligible for CGST,SGST,IGST.
II. Go to payment vouchers. Dr.IGST………………………..amount
III. Invokes statutory adjustment (ALT+S).
IV. Fill the period of payment Dr.CGST………………………..amount

V. Pass the entry( Dr.SGST………………………..amount

Cr.cash…………………………..amount