Author: Tally Academy

Difference between Old Vs New GST Return System

Posted on by Tally Academy

Introduction

The Indian government aimed at introducing GST to streamline the taxation policies even further. Under GST scheme, businesses followed the rule of ‘One Nation, One Tax’ which helped several taxpayers stay compliant seamlessly. However, several entrepreneurs found GST a bit complicated with numerous forms which are to be filed. Thus, to make the taxation system more simplified, the government announced the launch of GST 2.0 aka New Return Filing. The objective of the New Simplified GST Returns is to completely knock off the tax evasion pan India so that the transparency and equality can be attained under the indirect tax mechanism.

Let’s look at how different GST 2.0 is from the old return filing mechanism and how it will benefit the taxpayers.

Under the old return filing system

GSTR-1 return should be filed for reporting outward supplies and declaring tax liability on the same. Input Tax Credit (ITC) on imports has to be claimed in GSTR-3B under eligible ITC.

The taxpayer has to file monthly GSTR-1 if his annual turnover is more than Rs.1.5 crore. Otherwise, the taxpayer can file a quarterly GSTR-1.
This return includes/developers on a bill of entry

S. no Particulars
1 Supplies made to registered persons other than reverse charge mechanism (RCM) supplies and supplies through e-commerce operator
2 Supplies made under reverse charge mechanism
3 Supplies made through e-commerce operator
4 Interstate supplies to unregistered persons where invoice value is more than Rs.2.5 lakh
5 Zero rated supplies and deemed exports
6 Nil rated, exempted and non-GST outward supplies
7 Amendments to taxable outward supply
8 Advances received/adjusted during the tax period
9 HSN-wise summary of outward supplies
10 Documents issued during the tax period

Under the new return filing system

GST ANX-1 should be filed for reporting sales and declaring tax liability on the sales. Imports are also to be reported in GST ANX-1 and ITC on imports will be auto-populated in GST RET-1.
In the new return system, taxpayers are categorised into large taxpayer (whose annual turnover is more than Rs.5 crore) and the small taxpayer (whose annual turnover is up to Rs.5 crore). A large taxpayer has to file monthly GST ANX-1, whereas the small taxpayer can file his GST ANX-1 monthly or quarterly at his option.

This return includes

S No Particulars
1 Supplies made to consumers and unregistered persons
2 Supplies made to registered persons (Other than RCM supplies)
3 Exports with/without payment of tax
4 Supplies to SEZ units/developers with/ without payment of tax
5 Deemed exports
6 Inward supplies attracting reverse charge
7 Import of goods/services
8 Import of goods from SEZ units/developers on a bill of entry
9 Missing invoices which are to be uploaded by recipients
10 Details of the supplies made through e-commerce operators
11 Amendments to various supplies

Comparison – old vs new GST return system

The form GST ANX-1 under the new return system is similar to GSTR-1 under the old return system. There are some changes under the new return system when compared to old return system. Some of them are

  • Reporting of Supplies Under RCM

In the current filing system, invoice details can be reported while filing GSTR 1 form but can be viewed afterwards in GSTR-2A. In the new filing system, filing and viewing go simultaneously so that instant action can be taken on that.

  • HSN Summary Reporting

Under the old return system, the HSN code summary needs to be reported separately. But in the new return system, the supplier has to report the HSN codes at the invoice level (based on his turnover). In this way, the taxpayer will get the HSN data via his GST ANX-2 wherever the supplier was required to declare HSN.

  • Reporting of Imports

Under the old return filing system, ITC on imports alone has to be reported in GSTR-3B. However, under the new return filing system, the taxpayer has to report imports of goods and services in GST ANX-1.

  • Tax Payment

In the current system, Full Tax liability must be paid for a tax period while filing monthly return GSTR-3B. In the new system, complete Tax liability must be paid for a tax period in monthly PMT-08, regardless of monthly or quarterly filing of GST returns.

  • Reporting of Documents Issued

Under the new return system, there is no requirement for reporting of documents (along with serial numbers) like invoices, debit/ credit notes, receipt/ payment/ refund vouchers, delivery challans which were issued during the tax period.

Moving data to new financial year

Posted on by Tally Academy

Moving data to new financial year

You may do all that is possible to close your books on last day of the financial year, in reality, you will have spillover, or certain activity can only be carried out after the closure of the financial year.

While you got all the time to do that but what’s more important here is to move to the new financial year and starting the books from 1st Day of the new financial year. With Tally, moving to the new financial year is as simple as changing your period.

To change the current period, Go to Gateway of Tally > click F2: Period and enter the dates.

Doing this helps you:

Continue to enter vouchers in the same company data
Ensure zero downtime, helping you start the new year on a hassle-free note

Splitting company data

If you choose to separate your previous financial year into a different company, split company data will be helpful. Ideally, it is performed when the closure activities such as analysis, audits, all adjustments etc. in books of the previous financial year are completed.

To ensure the splitting activity is smooth, you need to perform the data verification process before splitting. This automatically detects possible errors in the data.

Go to Gateway of Tally > F3: Cmp Info. > Split Company Data > Verify Company Data
Select the company you want to split
If there are any errors, the list will be shown for you to correct it
To split the company data, Go to Gateway of Tally > F3: Cmp Info. > Split Company Data > Select Company. Once you’ve selected the company, enter the date in the Split From field and press Enter.

When you split the data, the original data is retained, and two new companies with unique names and date are created. You can rename the split company as required and save the original data in another location.

Splitting company data helps you:

Secure old data and start work in a different company
Maintain separate company for each financial year
Carry forward all ledger balances automatically
Accurately split your transactions of the previous financial year from the current financial year

Create new books and import the data

If you wish to create a new company, export the closing balances of the ledgers and stock items of the previous company, and import them as opening balances into the new company. This helps you to clean your data by removing redundant masters such inactive ledgers, Obsolete Stock Items etc.

To create new books of accounts:Go to Gateway of Tally > F3: Cmp Info > Create Company
Enter 1-4-2020 as the Financial year begins from
To export closing balances from Previous F.Y company:
Go to Gateway of Tally > Display > List of Accounts > E: Export.
Select the Format as XML (Data Interchange)
Enable ‘Export closing balance as opening’
Mention 31-3-2020 in ‘To Date’
Press Enter to export the details in  XML file
To import closing balances as opening balances in the new companyGo to Gateway of Tally > Import Data > Masters
Mention the XML file location along with the Filename ( E.g. C:\Tally.ERP9\Master.xml)
Select ‘Modify with New Data’ in Treatment of entries already existing
Press Enter to import
On completing the import process, you can compare the masters of both importing and exporting company by navigating to Gateway of Tally > Display > Statement of Accounts > Statistics. If you wish to clean up the redundant or inactive ledgers or stock items, you can delete those.

 

Upgrading to the latest release

At Tally, we come up with regular releases to add new functionalities in the product and improve your product experience even further. To make sure you’re not missing out on any important feature, it is important to always stay updated.

In our latest release Tally.ERP 9 release 6.6, a new capability to access your Tally’s Data on browser in mobile or any device is made available. Experience Now.

To upgrade to the latest release, Go to Gateway of Tally > F12: Configure > Product and Features. Click F12: Configure again and set Show All Releases? to Yes. Once you select the latest release, click F6: Update, post which the system will need to restart in administrator mode to update the product.

Note: You need to have an active Tally Software Services (TSS) subscription to upgrade to the latest release.