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Tally Course : How to Create Company, Activate GST, Stock Groups

activating gst in tally erp 9

Creating a New Company (Goods) & Activating GST

How to create a company?

Scenario:

Shriram Electronics is a proprietor based company from Mumbai Maharashtra engaged in trading of Electronic Goods across India. They want their business and Company should be GST Ready in Tally.ERP9

We will be creating a new company Shriram Electronics in Tally.ERP9 and set up GST Details as shown below.

Company info > Create Company > Shown by Following Screen

create a company in tally erp 9

Press Enter & Accept the Screen

Activating GST

Gateway of Tally > Press F11 > Statutory & Taxation >

Set Following Options to ‘Yes’

Enable Goods & Services Tax (GST)

Set / Alter GST details

Enter the GST No. and PAN No. as shown in the following screen.

activating gst in tally erp 9

gst details in tally erp 9

statutory and taxation in tally erp 9

Press Ctrl + A to Accept the Screen

Press Esc and Return to Gateway of Tally

 

Creating Stock Group:

Gateway of Tally > Inventory Info. > Stock Group > Create

Field Type
Name Samsung
Alias Skip by pressing Enter key
Under Select Primary from the list of groups
Quantities of item be added? Yes
Set/ alter GST Details No

stock group in tally erp 9

Press Enter to Accept the Screen

Then Similarly Create the Stock Group by Name “Dell”

Stock Group Under
Dell Primary

Press Enter & return to Gateway of Tally

 

Creating Stock Categories:

Gateway of Tally > Press F11 > Inventory Features

Set Following Options to ‘Yes’

Maintain Multiple Godowns

Maintain Stock Categories

stock categories in tally erp 9

Press Enter & Return to Gateway of Tally

Gateway of Tally > Inventory Info. > Stock Categories > Create

Field Type
Name Laptop
Alias Skip by pressing Enter key
Under Select Primary
Accept? Yes or No Yes

creating stock category in tally erp 9

Press Enter & Accept the screen

Then similarly, create the following stock category

Stock Category Under
Smart Phone Primary

Press Esc & return to Gateway of Tally

 

Creating the Godown

Gateway of Tally > Inventory Info > Godowns > Create

Field Type
Name Showroom
Under Primary
Our Stock with Third Party No
Third Party Stock with us No

creating godown in tally erp 9

Press Enter & return to Gateway of Tally

 

Creating Unit of Measure:

Gateway of Tally > Inventory Info. > Unit of Measure > Create

Field Type
Type Simple
Symbol Nos
Formal Name Number of
Unit Quantity Code (UQC) NOS-NUMBERS
No. of Decimal Places 0 (Zero)
Accept? Yes or No Yes

creating unit of measure in tally erp 9

Press Esc & Return to Gateway of Tally

 

Creating Stock Item & Defining Tax Rate at Item Level:

Creating a New Stock Item “Dell Laptop 356”

Gateway of Tally > Inventory Info. > Stock Item > Create (Single)

Field Type
Name Dell Laptop 356
Alias Enter
Under Dell
Category Laptop
Units Nos
Set Std. Rates? No
GST Applicable Applicable
Set/ Alter GST Details Yes
Description Electronics Goods
HSN / SAC 84713010
Is non GST Goods? No
Calculation Type On Value
Taxability Taxable
Integrated Tax 28%
Central Tax Enter
State Tax Enter
Cess Enter
Type of Supply Goods
Rate of Duty Enter
Accept? Yes or No Yes

creating stock item in tally erp 9

The Item Creation Screen is shown below

defining tax rate at item level in tally erp 9

Press Esc & return to Gateway of Tally

 

Creating Stock Item “Samsung – S8 Mobile”:

Field Type
Stock Item Name Samsung-S8 Mobile
Under Samsung
Stock Category Smartphone
Unit Nos
Set Std Rates? No
GST Applicable Applicable
Set/Alter GST Details Yes
Description Electronics Goods
HSN / SAC 8517
Is non-GST Goods? No
Calculation Type On Value
Taxability Taxable
Integrated Tax 18%
Central Tax Enter
State Tax Enter
Cess Enter
Types of Supply Goods

creating stock item samsung in tally erp 9

Press Esc & return to Gateway of Tally

 

Creating GST Ledgers:

On Every Supply of Goods & Services a Tax Component of the Center & Structure of GST. State will be applicable

  1. CGST – Central GST – Applies to sales within the state – goes to Central Government
  2. SGST – State GST – Applies to Sales within the state – goes to State Government
  3. IGST – Integrated GST – Applies to sales outside the state – goes to Central Government

For example, if you sell something within the state, 50% of the GST will be CGST and 50% of the GST will be SGST. But when you sell something outside a state, 100% of it will be IGST which will go to the central government.

 

Creating CGST Ledger:

Gateway of Tally > Accounts Info > Ledger > Create

Name CGST
Under Duties & Taxes
Type of Duty / Tax GST
Tax Type Central Tax
Inventory value are affected No
Percentage of Calculation 0%
Rounding Method Not Applicable
Accept? Yes or No Yes

creating cgst ledger in tally erp 9

Press Enter & Accept the screen

 

Creating SGST Ledger

Name SGST
Under Duties & Taxes
Type of Duty / Tax GST
Tax Type State Tax
Inventory value are affected No
Percentage of Calculation 0%
Rounding Method Not Applicable
Accept? Yes or No Yes

creating sgst ledger in tally erp 9

Press Enter & Accept the Screen

 

Creating IGST Ledger:

Name IGST
Under Duties & Taxation
Type of Duty / Tax GST
Tax Type Integrated Tax
Inventory value are affected No
Percentage of Calculation 0%
Rounding Method Not Applicable
Accept? Yes or No Yes

creating IGST ledger in tally erp 9

Press Enter & Accept the Screen

 

Creating Bank Ledger

Gateway of Tally > Accounts Info > Ledgers > Create (Single)

Name HDFC Bank A/c
Under Bank Accounts
Account No 00141523456251
IFSC Code HDFC0000637
Bank Name HDFC Bank (India)
Branch Mumbai
Opening Balance Rs. 5,00,000

Press Enter & return to Gateway of Tally

 

Entering Opening Balance of Cash:

Gateway of Tally > Accounts Info > Ledger > Alter (Single) for Cash Enter for Rs. 7,50,000/-

 

Transferring Input Tax Credit to GST

Transfer of Input Tax Credit of VAT, CENVAT, Service Tax, Krishi Kalyan Cess, and Service Tax to GST by recording journal voucher in Tally.ERP9

The Tax Credit of Service Tax and Excise has to be transferred to Central Tax Ledger.

The Tax Credit of VAT, additional tax, Surcharge, and cess has to be transferred to the state tax ledger.

Two Separate Journal Vouchers have to be recorded to account for the opening balance of Central and State taxes.

Scenario 1: Transfer of closing balance on Input tax credit to GST.

Journal Voucher Entry: 1

Date: 1.7.17: Shriram Electronics transferred the input VAT credit of Rs. 5000 to State Tax Ledger (SGST)

Journal Voucher Entry: 2

Date: 1.7.17: Shriram Electronics, transferred the CENVAT credit of Rs. 3000 to Central Tax Ledger (CGST)

 

Enabling VAT:

Gateway of Tally > Press F11: Statutory Taxation

Enable Value Added Tax (VAT) to ‘Yes’

enabling vat in tally erp 9

Press Enter & Accept the screen

 

Scenario: Transfer of closing balance on input tax credit to GST

Journal Entry: M/s Shriram Electronics Transferred the Input VAT credit of Rs. 5,000/- to State Tax Ledger.

 

Creating VAT Ledger:

Gateway of Tally > Accounts Info > Ledgers > Create

Name VAT
Under Duties & Taxes
Type of Duty / Tax VAT
Accept? Yes or No Yes

creating vat ledger in tally erp 9

Recording of Input Tax Credit Transaction in Tally.ERP9

Gateway of Tally > Accounting Vouchers> F7: Journal

Date 01/07/2017
Press (Alt+J) Stat Adjustment
Type of Duty/tax GST
Nature of Adjustment Opening Balance

recording input tax credit in tally erp 9

Particulars (Dr.) SGST
Amount Rs. 5,000/-
Particulars (Cr.) VAT
Amount Enter

input tax credit in tally erp 9

Press Enter & Accept the screen

Journal Entry: M/s Shriram Electronics transferred the input CENVAT credit of Rs. 3000/- to Central Tax Ledger.

 

Creating CENVAT Ledger:

Gateway of Tally > Accounts Info > Ledgers > Create

Name CEN VAT
Under Duties & Taxes
Type of Duty / Tax VAT
Accept? Yes or No Yes

creating CENVAT Ledger in Tally ERP9

Press Enter & return to Gateway of Tally

Recording the Input Tax Credit Transaction to CENVAT in Tally.ERP 9

Gateway of Tally > Accounting Vouchers > F7: Journal

Date 01/07/2017
Press (Alt+J) Stat Adjustment
Type of Duty /tax GST
Nature of Adjustment Opening Balance

recording input tax credit in tally erp 9

Particulars (Dr.) CGST
Amount Rs. 3000/-
Particulars (Cr.) CENVAT
Amount Enter

input tax credit in tally erp 9

Press Enter & Accept the screen & go to Gateway of Tally

 

3 thoughts on “Tally Course : How to Create Company, Activate GST, Stock Groups

  1. Dear sir
    Please provide me comprehensive and step by step details of doing tally accounting & inventories and it’s export to excel or html.
    Thanking you
    Yours sincerely
    Pradeep kumar
    Mob no 89991353999

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