Tally Prime with GST: The Complete Guide
Tally Prime is India’s top accounting software used by companies to manage financial transactions efficiently. Upon the introduction of the Goods and Services Tax (GST) in India, Tally Prime has developed a means for easy GST compliance that helps companies simplify their tax calculation, return filing, and billing process. In this article, we will describe Tally Prime with GST, its advantages, merits, and how to adopt it for tax compliance in enterprises.
What is Tally Prime?
Tally Prime is the professional version of Tally ERP 9 with an easy-to-use interface and additional features to make accounting, inventory, and tax return easy. It is applicable for businesses that are small in size but large in operation.
It does not need any accounts expertise to maintain accounts, raise bills, inventory on hand, and GST compliance. It is a single-application solution with inbuilt accounting, inventory, payroll, taxation, banking, and reporting features.
GST in Tally Prime
GST (Goods and Services Tax) is India’s consolidated tax regime, which has subsumed several indirect taxes. Tally Prime makes businesses GST compliant with automated calculation of taxes, GST bill creation, and return filing.
Major Features of Tally Prime for GST
GST-Ready Invoice: Prime enables businesses to prepare GST-ready bills, which have various taxation components such as CGST, SGST, IGST, and UTGST.
GST Automated Computation: GST is automatically calculated based on default tax rates and the same is used in case of sales as well as purchase transactions accurately.
Filing of GST Returns: GST returns (GSTR-1, GSTR-3B, GSTR-4, GSTR-9) may be prepared from within Tally itself and sent outside for filing at the GST portal.
E-Way Bill Preparation: preparation of e-way bills is made hassle-free by Prime in case of transport of goods in accordance with the GST Act.
Input Tax Credit (ITC) Management: Users are assisted with simple ITC tracking and claiming, thus lightening the tax burden.
GST Reconciliation: Users are assisted to match the purchase ledger with the dealers’ data for removal of mismatch in GST returns.
Multi-Tax Rate Support: Prime accommodates multiple GST rates along with exempt, zero-rated, and reverse charge mechanisms.
Application of Tally Prime for Compliance under GST
1. GST setup in Tally Prime
To facilitate GST , follow the below steps:
Open Tally Prime and navigate to Gateway
Navigate to Features (F11) > Statutory & Taxation.
Activate the GST and enter the details such as GST registration type, GSTIN, and tax rates applicable.
Configure GST classification for various goods and services.
2. Generating GST-Compliant Invoices
After GST is activated, companies can generate invoices which are GST compliant.
When posting a sales, pick the appropriate tax ledger.
The correct GST percentage will be picked automatically by based on the tax category of the item.
Segmenting GST in the invoice in such a manner that it may be displayed in the proper format and clearly.
3. Accounting for GST on Purchases
Purchases are posted as follows:
Post the supplier detail and GSTIN.
Pick the right tax type (IGST for intra-state, CGST & SGST for intra-state).
Tally Prime will compute tax automatically and hold Input Tax Credit.
4. GST Return Preparation
Prime supports simple GST return filing through reports to be filed:
Go to Gateway of Tally > Display > Statutory Reports > GST Reports.
Choose the type of return (GSTR-1, GSTR-3B, etc.).
Save the report in the specified format to file online.
5. GST Data Reconciliation
Prime provides GST account reconciliation with GST portal accounts:
Import GSTR-2A data and reconcile it with purchase records.
Flag differences and get them rectified before filing returns.
Advantages of Using Tally Prime for GST
1. Error-Free Tax Calculation
Tally Prime provides error-free calculation of tax, thereby lessening the risk of paying tax in the wrong way or facing penalties.
2. Time and Effort Saved
GST calculation, return preparation, and reconciliation feature provided by automated system saves businesses considerable time as compared to direct manual filing of tax.
3. GST Law Compliances
Tally Prime keeps on being updated to sync with GST law changes so the business stays up to date with no extra efforts on their end.
4. Ease of integrating with E-Way Bill
Since e-way bill functionality comes as part of it, businesses can prepare e-way bills as well as send follow-ups directly from the platform without ever going out of the platform.
5. Improved Financial Management
Tally Prime enables organizations to view detailed financial statements, supporting sound decision-making as well as effective management of cash flows.
6. Simple-to-use User Interface
Anybody can use and work with Prime without any accounting experience and maintain itself GST compliant.
Common GST Errors and Why Tally Prime Does Not Fall Into Them
1. Incorrect classification of GST
Inaccurate segregation of goods and services can result in inaccurate calculation of tax. Tally Prime is exempted from this as it supports pre-defined segregation of tax.
2. Differing ITC Claims
Deformed ITC claims attract penalties. Reconciliation functionality in Prime facilitates matching of ITC claims against suppliers.
3. Incomplete Invoice Details
Semi-filled invoice details lead to compliance failures. Prime supports all the mandatory GST fields in invoices.
4. Delayed GST Return Filing
Late filing of GST is penalized. Timely filing is auto-generated by Prime along with reports.
Conclusion
Tally Prime is a highly efficient solution for organizations to effectively manage their GST compliance. With auto-calculation of tax, invoicing of GST, filing of returns, e-way bill, and reconciliation, Tally Prime makes the complex task of GST management easy as a cake. With Tally Prime, companies stay GST law compliant, save time, and make accuracy child’s play. Whether small business or big business, Prime is an investment that you simply cannot afford to miss for tax compliance as well as financial management.