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Easily File GST Returns with GST Reports in Tally.ERP 9

In this Article we will learn how to  easily file GST Returns with GST Reports in Tally.ERP 9 the latest version of Tally.

It is quite easy to pass GST entries and it is equally easy to understand and GST returns with GST Reports in tally.ERP 9

Currently, there are 3 types of GST returns in Tally.ERP 9. They are:

  1. GSTR-1 – which includes Sales
  2. GSTR-2 – which includes Purchases
  3. GSTR-3B – which includes both Sales and Purchases

For accessing the returns in Tally.ERP 9, you have to follow simple steps.

  1. From Gateway of Tally, go to
  2. Then go to Statutory Reports.
  3. Now, select GST and you will see all the 3 returns.

Although Tally calls it reports, but in general they are called returns.

Let us start by first GST Return in Tally.ERP 9 which is GSTR-1




GSTR-1 in Tally.ERP 9

GSTR-1 is a return which includes all the GST Sales entries in Tally. In simple words, whenever you sell something, it has to be included in GSTR-1.

Let us look at the picture below which shows GSTR-1 return. I have passed one entry of sales for your better understanding.

There are 2 parts of the return. First one is the Returns Summary which is at the top and second one is the one which consists of different tables or rows.

Let’s analyze the Returns Summary.

There are 3 options and they simply state the number of vouchers relevant for the return.

The relevant vouchers will be shown in the first row and the vouchers which are not relevant for the return will be included in the second row which particularly states Not relevant for returns.

The vouchers which are not relevant for returns are the Purchase Vouchers and nothing else.

As this is a Sales Return and therefore Purchase Vouchers are not relevant for this return.

The last row is important here.

It is about Incomplete/Mismatch in information (to be resolved). It means there is something wrong in the entry you passed in Tally.

This option is very much important because if you upload any incorrect details, your return wouldn’t match and you would have to rectify it later.

It is better that you rectify the mistakes before uploading it to the GST website.

The option will list down what went wrong and you can rectify your mistake from there.

There is also an option to upload the voucher as it is. This means the voucher will be uploaded as it is although Tally is showing the error.

Sometimes it happens that the software doesn’t recognize the way you are passing entries and hence this option can be useful.

Now let us move on to the second part of the return. This part contains different rows which are segregated by the type of invoice you issue.

As per the GST law, there are different types of invoices that need to be differentiated while uploading the return.

Tally.ERP 9 does that automatically for you.




There are 5 different types of invoices in GST which are:

  1. B2B Invoices – when you sell to someone who also has a GST number.
  2. B2C (Large Invoices) – when you sell to someone outside your state and the invoice amount is more than ₹2,50,000.
  3. B2C (Small Invoices) – when you sell to someone outside your state but the invoice amount is less than ₹2,50,000.
  4. Nil Rated Invoices – when you sell something that attracts 0% GST.
  5. Export Invoices – when you sell something outside India.

As you can see in the picture above, there are 5 different invoices already in Tally.ERP 9 along with some other details such as Debit/Credit Notes and Set-off of taxes.

This is whole GSTR-1 return in Tally.ERP 9.

Once you pass all the sales vouchers in Tally, your GSTR-1 is prepared. You can easily export the Excel file required for preparing the GST return to be uploaded by pressing CTRL+E which is a shortcut for e-Return.

Now, let’s move onto GSTR-2.

GSTR-2 in Tally.ERP 9

GSTR-2 is for Purchases. It will include all the purchase vouchers that you enter in Tally.ERP 9 for the purposes of GST.

It is easy in Tally.ERP 9, to pass the purchases entries with GST and all that entries will be reflected in GSTR-2.

Have a look at the picture below in which I have passed one voucher for a purchase of ₹40,000 along with a CGST and SGST of ₹5600 each.

As you can see, everything is almost same as GSTR-1. There are minor differences which we are going to talk about.

Whenever you pass a purchase entry which attracts GST, it will reflect here in GSTR-2.

In this case, there is just one option B2B as opposed to more options like B2C, B2C (small), B2C (large) and so on.

This is because when you are purchasing, it will be sales for someone and therefore it is already segregated for them in their GSTR-1.

So, there is no need to do that once again, right?

There are some other options such as TDS Credit, TCS Credit and the tax liability under Reverse Charge.

When you purchase something, you might have to pay TDS, TCS or you may have to pay TDS, TCS or GST in reverse charge.

That is the reason those options are being shown in GSTR-2.

In short, the return is extremely simple. It just asks for the details that are generally required while you pass the purchase entries.

Interesting thing to note here is that you have to provide every single detail of every kind of indirect tax you pay and hence it is very much difficult to evade tax.

This was GSTR-2 in Tally.ERP 9 which is almost the same as GSTR-1.

Now, let’s understand GSTR-3B in Tally.ERP 9.

GSTR-3B in Tally.ERP 9

It is a summary return. It shows the summary of sales and purchases and the amount of tax payable or refundable to you.

You can easily just look at the GSTR-3B and you will have all major details regarding GST at a glance.

Have a look at the picture below to understand GSTR-3B in Tally in a better way.

The return shows in summary about the amount of GST you have to pay, amount of credit you have and the other purchases that you have made on which GST is not applicable.

In short, it is a short summary of the taxation your business attracts.

These were the three GST returns in Tally.ERP 9 and they are prepared automatically as and when you pass the necessary vouchers.

You can export them in the Excel format to further upload your return. This will save your time since the returns are automatically prepared in Tally.ERP 9.

Conclusion

Preparing GST returns in Tally.ERP 9 is easy since you do not have to actually prepare returns in Tally. You just have to pass the entries and the returns will be automatically prepared.

I must say that the GST returns planned by the Government of India are very easy to fill in and are very cleverly constructed.

Just 3 separate returns and you are done. Simple to understand and follow.

The GSTR-3B is also very good because you can simply look at that one single return and you can easily know how much tax you have to pay.

Preparing GST returns in Tally.ERP 9 is easy and fast. It consumes less time and does more work.

About Me:

I am Rishit Shah, a CA Final student and a big FAN of Tally. I explain Tally in a simple and easy way on www.tallySchool.com. I am running TallySchool from the past three years and helped thousands of people to learn Tally in a simple manner. TallySchool has been featured on Tally Solutions (the company behind Tally), TaxGuru, CAClubIndia and Chartered Club to name a few.

 

p.s.: This is a merely a guest post and NOT a sponsored one with any monetary benefit. Indiataxguide.in is not associated with Tallyschool.com & Tally Solutions. The only intention of publishing content of this articles is only for sharing information and knowledge and educational.

 

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4 thoughts on “Easily File GST Returns with GST Reports in Tally.ERP 9

  1. Dharmesh Bhatt says:

    How to setup tally for GST on RCM?

  2. Subrata Banerjee says:

    After passing tally entry of GST challan, payment figure not shown in GST3B?

    1. S Vishawanathan says:

      In GSTR-3B there is no provision of showing Tax payment details so, it is not shown in GSTR-3B. It is to be set off in GSTN Portal

  3. Thanks for sharing this article, really informative.

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