Complete Tally Prime Tutorial on Trading Organization with GST

Complete Tally Prime Tutorial on Trading Organization with GST

Introduction of GST in Trading organization

GST is an Indirect tax levied on whole nation .It stand for goods and service tax.

Types of dealers in GST

There are three types of dealers in GST .

  • Registered
  • Compositions
  • Unregistered

Registered dealers are those who who can claim ITC on the GST paid to your supplier and use the same to offset your output tax liabilities.

Composition dealers does not charge GST under law but has to pay GST as flat rate he will not be able to issue a tax invoice to you.

 

Unregistered dealer When you purchase from unregistered dealer you will be liable to pay GST under RCM.

GST is divided into three tax slab

  • IGST
  • CGST
  • SGST

IGST when goods are purchased and sale from other state.

Example IGST 18% which means GST 18%

CSGST and SGST when are goods are purchased or sale within the state

Example

CGST 9% SGST 9% which means GST 18%.

 

GST Mechanism

GST MECHANISM

Create company In Tally prime

  • Go to gateway of tally > press Alt+K >create
  • Type the name of the company
  • Email address and all the information
  • Select country and state so the tax compliance will be added.
  • Save the file.

GST compliances on Company

  • Go to gateway of tally > press Alt+K >F11
  • Maintain accounts YES
  • Maintain Inventory YES
  • Intergrade accounts with inventory YES
  • Enable goods and service tax (GST) YES
  • A New widows appear
  • State :Maharashtra
  • Registration type :regular
  • GSTIN/UIN :27AAACB5343E1ZI
  • Applicable from : 1 april -21
  • Periodicity : Monthly

 

As bill wise detail and E-way bill we will see later how to implement that .

Company creation in tally Prime
Company creation in tally Prime 2

Opening balance Trading company in Tally Prime

In the company we already have Closing balance therefore according to that we have to post opening balances in the Tally Prime.

Balance Sheet as on 31 March 2021

Liabilities

Amount

Assets

Amount

Capital A/c

550000

Fixed Asset

(as per List)

500000

Bank OD /OCC A/c

ICIC bank Loan A/c

100000

Current Asset

Closing Stock

100000

Secured Loan

Navin

Kailash

200000

30000

Sundry Debtors

(As per list)

400000

Sundry Creditor

(Hindustan ltd)

200000

Cash

150000

(current liabilities)

Provision

(as per list)

50000

Bank A/c

250000

Unsecured Loan

(as per list)

100000

Deposits

(as per list)

100000

 

1500000

 

1500000

Closing stock at the end of the balance sheet

List- Provision

S.no

Name

Amount

1

Electricity Bill Payable/c

10,000

2

Office exp payable

10,000

3

Rent Payable

15,000

4

Salary Payable

15,000

 

 

50,000

 

List- Unsecured Loan

 

S.no

Name

Amount

1

Komal

30,000

2

Kunal

20000

3

Sandip

25000

4

Payal

25,000

 

 

100,000

 

List of Fixed Assets

S.no

Name

Amount

1

Computer

100000

2

Printer

25000

3

Motor Vehicles

275000

4

Furniture

100000

 

 

500000

List of Sundry Debtors

 

S.no

Name

Amount

1

5 star Super Market

25000

2

Apollo Traders

25000

3

Dhanlaxmi Provision

20000

4

Dhruv traders

100000

5

National Distributors

50000

6

JR Foods

22000

7

Modi traders

78000

8

Patel foods

50000

9

Potdar traders

50000

 

 

 

 

 

S.no

Name

state

Registration

GSTIN

1

5 star Super Market

MAHARASHTRA

Compositions

27AAACIC1681G1ZP

2

Apollo Traders

Maharashtra

Compositions

27AAACB2100P1ZX

3

Dhanlaxmi Provision

Maharashtra

Regular

27AAACB2902M1ZT

4

Dhruv traders

Maharashtra

Regular

27AABCL5045N1Z8

5

National Distributors

Maharashtra

Regular

27AAACI1195H2ZL

6

JR Foods

Maharashtra

Regular

27AAACC1206D1ZG

7

Modi traders

Maharashtra

Regular

27AAACC1206D1ZG

8

Patel foods

Maharashtra

Unregistered

………………….

9

Potdar traders

Uttarakhand

Regular

05BBEPP1515P1ZI

 

 

 

 

 

 

How to create ledger in Tally Prime:

How to create ledger in Tally Prime:

  • To create ledger in Tally prime>gateway of tally prime >( Accounting master )create>ledger
  • In name type the name of ledger and in under (group) select the group)
  • Opening balance type the amount as specified in ledger
  • Let the example below
opening balances in tally prime

How to create multiple ledgers in Tally Prime:

It means the leger having same group and same nature such as in our case we have fixed asset ,current liabilities debtors etc.

 

  • Go to gateway of tally >chart of accounts
  • From chart of Accounts >ledger > Press ALT+H
  • Select Multiple Leger
  • A screen will open
  • Under group select Fixed assets
  • Type the name of ledger
  • Type the opening balance
  • Save

Similar we can create all the multiple leger as mention in the balance sheet .

Multiple ledger in tally prime

Inventory Tally Prime

Means stock/goods generally service sector organization does not maintain inventory .

In trading organization inventory means finished goods as they deal with only finished or final product. In manufacturing organization inventory means semifinished and finished goods .

It is known by name stock item in Tally prime.

Stock Group in Tally Prime

Stock group are head of stock item .It contain information about similar inventory and very helpful in classification of inventory .It can be on the basis of common features ,brand name ,product type etc.

Units in tally Prime

A unit is any standard used for making comparisons in measurements such a unit of Numbers which is specified as Nos is Tally prime ,KG signifies Kilo gram ,Mt signifies meter, bag signifies bag etc

 

First of all we have create Stock group in Tall Prime.

To create stock group

Go to gateway of tally >create> Inventory masters> Groups.

 

S.no

Stock Group

under

Can quantities of item to be added

Set alter GST detail

1

Soap

Primary

YES

NO

2

Bath soap

Soap

YES

NO

3

Food

Primary

YES

NO

4

Washing bar

Soap

YES

NO

Now to create group

·         Go to gateway of tally >create> Inventory masters> Groups.

·         Type the name of the Group > Soap

·         Under select > Primary

·         Can quantities of item to be added set to YES

 

·         Set alter GST detail set to NO.

See figure below.

How to create group in Tally Prime

Create subgroup with GST rate and and HSN /SAC

Now we need to Create subgroup with GST rate and and HSN /SAC number

  • This method helps us to define GST rate at Sub group level like product have 18% tax rate and some product have 12% tax rate then set rate at group level.
  • Under GST all goods and services supplied in India have classified Goods are classified under HSN code and service code .GST rate have been fixed in Five slap namely 0% 5% 12% and 18%.

List of stock group with GST implemented at Group level.

Stock Group

Under

Should quantity be added

Set/alter GST Detail

HSN/SAC

Rate

Hammam

Bath Soap

Yes

Yes

3401

18%

Jam

Food

Yes

Yes

2007

12%

 

Juice

Food

Yes

Yes

2009

5%

Lux

Bath soap

Yes

Yes

3401

18%

Sauce

Food

Yes

Yes

2103

12%

Tea

Food

Yes

Yes

0902

5%

How to Create subgroup with GST rate implemented.

 

  • Go to gateway of Tally prime >inventory Masters >Stock group >
  • Type Name > Hammam
  • Under primary > select Bath soap
  • Should quantity be added >YES
  • Set GST /alter detail YES
  • A New screen appears
  • In HSN //SAC type the code
  • Taxability>taxable
  • Integrated tax > 18%
  • Save

Similarly creates another group in Tally prime as mentioned in list.

Create subgroup with GST rate and and HSN /SAC number

Unit of measurement in Tally Prime

Now We need to create unit of measurement in our case its Nos

How to create Unit of measurement in Tally Prime

  • Go to gateway of tally> Inventory >Create
  • Select >Units
  • Type>simple
  • Symbol>nos
  • Formal Name: Numbers
  • Unit quantity code (UQC)>NOS-Number
  • Number of decimal places >0

To create location or godown Tally Prime

After creating Nos next thing is to set location /godown of the business where goods are to be placed.

  • To create location or godown
  • Go to gateway of Tally>Inventory master
  • Select location >alter existing location which is by default main location
  • Delete main location
  • Type >Shop

A new location shop is created similarly create another location warehouse.

Warehouse location is to created not alter.

List of Stock item in Tally Prime

 

Create stock item List in tally Prime

 

To create stock Item in tally prime

  • Go to gateway of tally>Inventory master>Stock Item>create
  • A new window appears
  • In name Type >hammam 100 gm
  • Under > hammam
  • Unit >Nos
  • Set standard rate yes a window appear
  • In applicable from Type the date 1/4/21 and in rate standard cost 16
  • Type the date 1/4/21 and in rate standard selling cost 18
  • Now in opening opening balance type 69 a new window appears
  • Select shop quantity 30 rate 18
  • Similarly select warehouse quantity 39 rate 18
  •  

 

Note :

  • Press F12 to check configuration select use group for stock item yes
  • Provide opening balance for stock item :Yes
  • Provide Unit of measurement of stock item Yes

Now create all other stock item in similar way after creating group as mention above.

stock item creation in tally prime 1
stock item creation in tally prime GST
stock item creation in tally prime 3

Stock summary in tally prime

After creating all the inventory in tally prime similary next is to see stock summary

To see stock summary there is new feature in tally prime which i

Go to gateway of Tally> Alt+G > show stock summary

Press Alt+f1 for detail reporting

A window will  appear

stock summary tally prime

Tax Rate Setup in Tally Prime GST

 

Now to see the tax rate setup go to gateway of tally >GST reports >GST rate setup>Alt +F1 for detail a new window will appear

As shown here

tax rate setup tally prime GST

Accounting voucher Key in Tally Prime

Voucher and function Key

Use for

Contra Voucher (F4)

a)Cash deposited in Bank

b)Cash withdrawal from Bank

c)Cash/Cheque Transferred one bank to Another Bank

d)Cash Transfer from Main Cashier to Petty Cashier

Payment Voucher (F5)

a)Paid loan by cheque or cash

b)Paid to Supplier /Sundry creditor by cheque or cash

c)Paid direct /Indirect expense by cheque /Cash

d)Purchase Assets  by Cheque or Cash

e)Fixed Assets purchase by cheque or Cash

f)Any type of payment made by cheque or cash

Receipt Voucher (F6)

a)Received personal Loan by cheque or cash

b)Received cheque or cash from Customer /Sundry Debtor

c)Received direct /Indirect income by Cheque or Cash

d)Any Type of income received by Cheque or Cash

e)Fixed Assets Sold by Cash by Cheque

f)Any Type of amount received by cheque or cash

Journal Voucher (F7)

a)Depreciation entries

b)Prepaid exp adjustment entries

c)Provision entries

d)Outstanding /payable exp Adjustment entries

e)Any type of adjustment entries

f)Fixed asset purchase /Sold on credit

Sales Voucher (F8)

a)Goods sold on Credit sales

b)Goods sold in Cash

c)Goods sold by Cheque

Purchase Voucher (F9)

a)Goods purchase on Credit

b)Goods purchase in Cash

c)Goods purchase by cheque

Date change F2

Date Change

Accounting voucher Key in Tally Prime

Go to Gateway of Tally >Vouchers>press key any key to create voucher entry

 

Accounting voucher Key in Tally Prime
Accounting voucher Key in Tally Prime 2

Maintain Bill Wise Detail In Tally Prime

Maintain Bill Wise detail is made in Tally Prime for maintaining outstanding and Pending bill of Sundry creditors and debtors

How to create bill  wise detail in Tally Prime

  1. Go to the gateway of tally >Alt +K >F11
  2. Set enable Bill wise Entry >YES 
as shown in figure
Bill Wise entry in Tally Prime

Now alter the ledger of the party 

Go to gateway of Tally Prime>Alter>Ledger

Select Appolo Trader 

Maintain Balance Bill by bill set to YES

Default credit period: 10 days

Check the credit days during voucher entry YES

Maintain bill wise detail in tally prime 1

Similarly alter ledger of following parties and give credit days 

Name of Party

Credit days

Dhanlaxmi Provision

25 days

Dhruv traders

27 days

National Distributors

28 days

Also, Alter Hindustan Ltd and set Maintain bill wise detail Set to YES

Now create Ledger of Purchase 

  • Gateway of Tally >create >Ledger
  • Name :Purchase 
  • Under :Purchase
  • Type of Ledger : Not Applicable
  • Is GST applicable >Applicable
  • Set /Alter GST detail :NO
  • Type of Supply :Goods
  • Opening Balance :skip the filed
  • press Y or enter to Accept the screen.as figure shown belwo
Purchase Account Creation

Ledger Input CGST and Input SGST

To create a ledger of Input CGST 

  • Go to the gateway  of tally > Create> Ledger
  • Name : Input CGST
  • Under Duties and taxes
  • Type of Duties: Central Tax
  • percentage of calculation :0%
  • Rounding method not applicable
  • Press Yes to save

 

 

input cgst ledger in Tally Prime

To create a ledger of Input SGST 

  • Go to the gateway  of tally > Create> Ledger
  • Name : Input SGST
  • Under Duties and taxes
  • Type of Duties: state Tax
  • percentage of calculation :0%
  • Rounding method not applicable
  • Press Yes to save
input sgst ledger in tally prime

Make a transaction in Purchase Voucher.

Note: Alter Hindustan Ltd and set maintain bill by bill to YES.

  1. Go to Gateway of Tally >vouchers >
  2. Press F9 purchase Voucher press CTRL +H and select Item invoice mode
  3.  Supplier invoice number HU01
  4. Date:1/5/2021
  5. Party Name: Hindustan Lts A/c
  6. Purchase Ledger: Purchase A/c
  7. Name of item: Taj Mahal Tea 250 Gm
  8. Godown: Warehouse
  9. Quantity:80
  10. Rate:80 Automatically
  11.  
  12. comes
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