Tally ERP 9
How to create company in Tally.ERP 9
Difference between Old Vs New GST Return System
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
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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.
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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.
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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.
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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.
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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
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:Â You need to have an active Tally Software Services (TSS) subscription to upgrade to the latest release.
How to download, install and activate Tally.ERP 9
How to Change Financial Year in Tally
Use Your Tally.ERP 9 Company from Anywhere
When your business needs the flexibility to access your data from anywhere, you can use the remote capabilities of Tally.ERP 9 for the same. Tally.ERP 9 provides support for accessing your company data using in-built Remote Access feature and Browser Access feature. In your office you need to have a valid Tally.ERP 9 license, an active TSS, an internet connection, and your company connected to Tally.NET services. You can also use Tally.ERP 9 on the computer in your office using third-party remote desktop (RDP) tools.
With the remote access capability, you can have your business data at your fingertips, even when you are attending a business meeting or out on a trip. If you or your employees want to work from home, or access the company data from the client location, Tally.ERP 9 remote capabilities come in handy.
Security and Control : You have complete control on who can access your company, and which features are available to the user. Further, your data will always be in your computer. Whenever a user connects to your company, based on the access permissions you have provided, the user can access the required features.
Audit Accounts : You can also allow your auditor to do verification of your books, if needed. If you are a Chartered Accountant, you can use your Tally.NET ID to get access to your clients’ data by making them give you access to their companies.
You can avail any of the following features based on your needs.
â— Remote Access – to record or alter your transactions, view reports, and print vouchers or reports.
â— Browser Access – to view or print reports and vouchers from any device.
â—Â Use RDP to access your computer where Tally.ERP 9 is installed, and work. To access your computer using RDP, you need to use third-party tools like Microsoft RDP, Citrix, VPN, TeamViewer, and so on.
You may use Tally.ERP 9 in Educational Mode or through a Rental License .
GST Return Filing Date for March-May Extended till June Amid Corona Virus
The government on March 24 announced extension of the last date for filing GSTR-3B for Goods and Services Tax (GST) for March, April and May to June 30, amid the Corona Virus chaos. “Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract a reduced rate of interest at 9 percent per annum from 15 days after due date (current interest rate is 18 % per annum),” she said.
Bigger companies, the FM said, would have to pay only interest but no late fee or penalty will be imposed. “No late fee and penalty to be charged, if complied with before or till 30th June 2020,” she said.
In a press conference, Sitharaman announced some crucial measures to fight the economic fallout of Covid-19 pandemic. The government also extended the date till the last week of June, for opting for composition scheme. “Further, the last date for making payments for the quarter ending 31st March, 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June, 2020,” the FM said.
The date for filing GST annual returns of 2018-19, which was due on March 31, has been extended till the last week of June. “Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020,” the government said.
Sitharaman also extended the deadline for filing FY19 income tax (I-T) returns till June 30. ATM charges have been scrapped till June 30.
FORM RET 1 – Quarterly GST Return
In the 31st meeting of GST Council, it was recommended to introduce and implement a new GST return system. One of the key aspects of the new GST return system is the introduction of different types of return forms considering the business profile. Quarterly return form RET-1 is one such return type designed for small taxpayers.
In this blog, let us understand the applicability, return filing period and format of quarterly return form RET-1
What is quarterly return form RET-1?
Quarterly Return form RET-1 is a return type for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B B2C and all other types supplies such as exports, SEZ etc.
To put it in simple words, businesses opting quarterly return form RET-1 will be allowed to make all types of outward supplies such as supplies to end consumers, unregistered business, registered business, exports, SEZ etc.
Except for the periodicity of filing return, the form type, format and details required to be furnished are similar to monthly returns.
Periodicity of filing quarterly return form RET-1
The periodicity of filing quarterly return form RET-1 is similar to the Sahaj and Sugam. You need file the returns quarterly with a monthly payment of tax on a self-assessed basis. The due date to file a quarterly return in Form RET-1 is 25th of the subsequent month following the quarter-end.
The due date for filing Sugam GST returns is given below
| Quarterly Return Form RET-1 | |
| Quarters | Due Data |
| April -June | 25th July |
| July – September | 25th October |
| October- December | 25th January |
| January-March | 25th April |
Due date for payment of tax
Though the return filing periodicity is quarterly, businesses opting quarterly RET-1 are required to make the monthly payment.
The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20th of the subsequent month.
Types of supplies allowed under quarterly GST Return Form RET-1
Business opting quarterly return Form RET-1 will be allowed to make all types of supplies as mentioned in the below table.
| Type of Outward Supplies | Allowed (Yes) / Disallowed (No) |
| B2B transactions | Yes |
| B2C transactions | Yes |
| Exports | Yes |
| SEZ units/developers | Yes |
| Deemed Exports | Yes |
| Outward Supply to e-Commerce Operators | Yes |
| Nil Rated, Exempted or Non – GST | Yes |
| Inward supplies attracting RCM | Yes |
| Import of goods/services | Yes |
| Import of Goods from SEZ | Yes |
Difference between Sahaj, Sugam and quarterly return form RET-1
All these returns are quarterly and designed for small taxpayers. The first difference, the obvious one is that each of these returns differs basis nature of supplies it supports. Sahaj supports only B2C supplies, Sugam supports B2C as well as B2B supplies and quarterly return form RET-1 support all types of supplies.
Second, the most important one, the facility of availing ITC on the missing invoice (invoices not uploaded by the supplier) and reporting of such bills is allowed for businesses opting monthly return and quarterly return in form RET-1. In other words, businesses who have opted Sahaj return and Sugam return will not be allowed avail ITC on the missing invoice.
Quarterly return form RET-1 return filing process
The quarterly return form RET-1 consist of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-1 is the return form to be used to file Sugam returns supported by the annexures.
The details of return forms and annexures to be used for filling Sugam return is given below.
| Form | Description | Action |
| Form GST ANX- I | Form GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge. | You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1 |
| Form GST ANX – II | It’s an annexure containing details of auto-drafted inward supplies.
|
Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis.
Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC. |
| Form RET-1 | Form RET-1 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores) | Business need to file the monthly return by 25th of the subsequent month following the quarter-end |
How to Transit to e-Invoice System?
With the introduction of e-Invoice concept, the businesses will be mandated to validate and authenticate the invoices by the government portal. Before getting into the ways to transit to a new system of e-invoicing, let us understand the current practice.
Current Practice Vs E-invoicing in GST
Today, every business whether big or small, create invoices using various accounting /ERP software and some even through a manual process. As a supplier, these invoice details are furnished in GSTR 1 and the buyer gets the visibility of invoices uploaded in GSTR -2A.
With e-invoicing, the current practice of generating the invoice and reporting will change.e-Invoice requires B2B invoices to be authenticated electronically by IRP (Invoice Registration portal).
The concept of e-invoice begins with uploading of e-invoice data in the prescribed format (JSON) to the IRP system and post validation, a unique number called ‘Invoice Registration Number (IRN)’ is generated for every invoice uploaded. Along with IRN, the e-invoice is tagged with a QR code for further use by various Government portal like GSTN or E – Way Bill portal.
If you closely look at the current and e-invoice system, two changes are evident. First, the need to get the invoice authenticated with IRN. Remember, an invoice without IRN is not a valid invoice. Second, the reporting of invoice details in GST returns and the e-Way bill will be auto-captured based on the e-invoice data.
All in all, by just uploading your e-invoice data to IRP system, most of your compliance needs will be taken care of. That’s the level of technology at which the e-invoice system is being built by the government.
What does this change imply to businesses?
As they move forward, businesses should make provision for a new form of issuance of invoices and leverage the benefit of technology with which the e-invoice system is built. Just like any new system, e-invoice too requires businesses to be prepared and smoothly transit.
In a bid to help the businesses to transit smoothly to e-invoicing, the next section highlights the key things businesses should take care of.
How to transit to e-invoice system?
The first step towards preparing your business for e-invoicing system is to know and understand the e-invoice system. Understanding the fundamentals and how the e-invoice system works will help you identify the requirements and fill gaps. This also calls for educating your internal teams about the change in the invoice process that comes with e-invoice.
Secondly, the accounting software you use will play a key role in e-invoice system. The new system requires you to upload and authenticate the invoice with IRN. Accounting software or ERP that seamlessly interacts with the IRP system will make the task of e-invoicing easier.
Here are the key things the accounting software is expected to do.
- Generating e-Invoice Data
You need to upload e-invoice data in JSON format as per the schema provided. Here, the accounting software should generate e-invoice JSON from the invoice details recorded as per the e-invoice standards. e-invoice standard consists of mandatory and optional fields and the accounting software should be able to cater to it considering your business necessities.
- Seamless Integration with IRP System
After you create an invoice with the help of your accounting software, you will have to upload such an invoice on the IRP portal for validation and generating IRN. Here, the accounting software should have the in-built capability to interact with the IRP system and upload the e-invoice JSON without manual intervention. This will not only save your time but also increases the efficiency in invoice processing.
- Download and Capture IRN
Once an invoice generated by you sails through the IRP portal, on its return, e-invoice JSON will be digitally signed and added with new elements such as IRN number and QR Code. The accounting software should be able to download the digitally signed JSON and accordingly incorporate the IRN and other details into the invoice you issue to your customer.