In India, the introduction of the Goods and Services Tax (GST) has significantly impacted the way businesses operate. Managing GST compliance can be a daunting task for many businesses, but Tally accounting software can help simplify the process. Here is a step-by-step guide to using Tally for GST compliance:
Step 1: Enable GST in Tally
To use Tally for GST compliance, you first need to enable GST in Tally. To do this, click on “Gateway of Tally” and select “F11: Features”. Then select “F3: Statutory & Taxation” and enable GST.
Step 2: Create GST-compliant invoices
To create GST-compliant invoices in Tally, click on “Gateway of Tally” and select “Accounting Vouchers”. Then select “Sales” or “Purchase” and enter the details of the transaction. Tally will automatically calculate the GST based on the type of transaction and the applicable tax rates.
Step 3: Record GST payments and receipts
To record GST payments and receipts in Tally, click on “Gateway of Tally” and select “Accounting Vouchers”. Then select “Payment” or “Receipt” and enter the details of the transaction. Tally will automatically record the GST paid or received.
Step 4: Generate GST returns
Generating GST returns can be a time-consuming process, but Tally can help simplify the task. To generate GST returns in Tally, click on “Gateway of Tally” and select “GST”. Then select “Returns” and choose the type of return you want to file. Tally will automatically generate the return based on the data entered in your invoices and payments.
Step 5: Reconcile GST data
Reconciling GST data is important to ensure that your GST returns are accurate. Tally can help with this by providing tools for reconciling GST data. To reconcile GST data in Tally, click on “Gateway of Tally” and select “GST”. Then select “Reconciliation” and choose the type of reconciliation you want to perform. Tally will automatically compare your GST data with the data entered in your invoices and payments.
Step 6: Verify and file GST returns
After generating your GST returns in Tally, it’s important to verify the data and file your returns with the GST portal. To do this, log in to the GST portal and select the type of return you want to file. Then enter the data from your Tally-generated return into the portal and submit it for verification. Once the return is verified, you can file it with the portal.
Step 7: Track input tax credit
One of the benefits of GST is that businesses can claim input tax credit (ITC) for GST paid on their purchases. Tally can help you track your ITC by recording your purchase transactions and calculating the eligible ITC. To track your ITC in Tally, click on “Gateway of Tally” and select “Display”. Then select “Statutory Reports” and choose “GST Reports”. From here, you can view your ITC ledger and track your eligible ITC.
Step 8: Manage GST payments and refunds
In addition to tracking GST payments and receipts, Tally can help you manage your GST payments and refunds. To do this, click on “Gateway of Tally” and select “Accounting Vouchers”. Then select “Payment” or “Receipt” and enter the details of the transaction. Tally will automatically calculate the GST and update your payment or receipt accordingly.
Conclusion: By following these additional steps, businesses can use Tally to effectively manage their GST compliance, including tracking ITC and managing payments and refunds. Tally’s robust features and capabilities make it an ideal tool for businesses looking to simplify their GST compliance.
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