Welcome To Tally.ERP 9 Blog

Please feel free to call us for any query related to Tally.ERP 9 on 022 - 64570707 / 28104422 / 28104432 or Mail us @ info@tallyworld.com

Wednesday, June 21, 2017

Tally ERP 9 Release 6.0 Ready for GST

You have all been following Tally’s series of posts about GST. We recently posted our product roadmap and announced that Release 6.0 will be our GST-Ready product!
We are pretty close to making our GST Ready software release, in line with the country’s imminent GST rollout.
Here is our detailed plan to make you GST-Ready with Tally:
– A Preview program that enables you to get comfortable with GST by downloading Tally.ERP 9 Release 6 (Beta)
– Go live with the final launch of Tally.ERP 9 Release 6 (Gold)
Make note of these important timelines.
– Preview program will start on the weekend of 17th June. Contact your Tally Partners for further information.
– Final launch of Tally.ERP 9 Release 6 during the week of 26th June.
What is a Preview Release?
A Preview Release gives you early access to the product for you to use and get comfortable.
Make a copy of your data and familiarize yourself with the product. With the limited time before the GST roll out, this Preview will help you prepare yourself better.
Note: A Preview Release is ‘not a Gold version’ , and you must not use this with your live data.

Our “Voice of the Customer” Program
In this journey towards creating a GST-ready Tally.ERP 9, we worked closely with some of you under our “Voice of the Customer Program”. Our Product team empaneled over 140 Customers and Partners (randomly selected) across India and continuously worked towards making all of us GST-Ready.
We would like to take this opportunity to thank each one of you. Your contribution was really insightful and helped us to make a better product.
Thank You once again!
Do watch the video for a sneak peek into Tally.ERP 9 Release 6.0 (Beta)!

Tuesday, June 06, 2017

How will Tally support my business to become GST Ready?

With just a few weeks left for the roll out of GST, one of the burning questions on your mind as a Tally user is probably, “How will Tally support my business to become GST Ready?”
With this blog post, you will understand Tally’s GST product strategy, and how you can smoothly transition into GST with Tally.ERP 9.

State of readiness of GSTN

As you know, the GST Council has approved the law, and the rules are now being finalised. Finalisation of GSTN APIs and readiness of GSTN are closely tied to the finalisation of GST rules.  Until the GSTN foundation is available with required stability, it is impossible to create a robust and usable GSTN connected product for you.
To overcome this dependency, and to help you, our users, be ready for GST, we have formalised a clear GST product roll out plan.

GST Product Roll Out Plan

Tally.ERP 9 Release 6.0 – Starting with GST

Our first major GST release will happen this June. Moving to this release will ensure that you are ready for GST from Day 1. Using this release, you can run all your business operations complying with the new GST rules.
What are the first steps to be ready for GST?
The crucial first steps for GST readiness include:
  • Creating GST-compliant transactions
  • Printing GST Invoices
  • Maintaining books of accounts
  • Making your data visible online on GSTN – this is a new activity for you, and some aspects of it might surprise you. To give you more confidence in the new era of filing GST returns, we advise that you follow a two-step approach:
    • Use the error-solving capability (also known as triangulation) provided in Tally.ERP 9 to ensure that you do not upload wrong transactions, and always have correctness of data.
    • Upload verified transactions to GSTN to minimise any back and forth due to errors.
With Tally.ERP 9 Release 6, you can start running your entire business operations to comply with GST rules using the following capabilities:
Running your day-to-day business operations
  1. Set up all the required tax rates, and maintain GSTIN details of all your suppliers and customers.
  2. Ensure that all new transactions are GST-compliant, and print GST- invoices.
Submitting your compliance returns
  1. Use Tally.ERP 9 Release 6.0 to verify correctness of transactions, in accordance with GST rules, before uploading data.
  2. Export data into a correctly formatted Microsoft Excel sheet using Tally.ERP 9 Release 6.0.
  3. Import this Excel file into the Offline Utility provided by GSTN and generate an output file (in JSON format).
  4. Upload this extracted file to the GSTN portal.
At the time of publishing this article, the format of GSTR 2 form is not yet available on the GSTN Offline Utility. Once the format is available, we will give you updated capabilities with subsequent releases of Tally.ERP 9. With this, you can import your supplier’s GSTN data into Tally.ERP 9 by using the GSTN utility, and fix purchase-related errors. This will help you easily manage the status of tax returns and books, and stay in sync with your GSTN data.
In the initial phases, we do expect stabilization and refinement in the law, rules and APIs. To support these changes, we will continuously work towards providing the right solution to you with minor/maintenance releases on Tally.ERP 9 Release 6 and the next major release Tally.ERP 9 Release 7.

Tally.ERP 9 Release 7

With Tally.ERP 9 Release 7, we intend to give you a “connected experience” with the GSTN system and solve pain-points as shared earlier.  Our release date and features are dependent on when we can use stable GSTN APIs and provide you with a robust solution.  For this, we will continue to work closely with the GSTN.
Each of our releases will focus on better compliance convenience for the diversity of businesses that we serve!

How can you get ready for Tally.ERP 9 Release 6?

Now that you understand Tally’s GST strategy, we advise you to upgrade today to the latest version of Tally.ERP 9 Release 5, in case you are not already using it. Ask your Tally Partner for help to upgrade, if required.
Start spotting and correcting invoice-level problems using the power of triangulation. This will help you get ready for GST because GST expects invoice-level accuracy as a prerequisite for invoice-matching, and subsequently to claim input credit.
For Any help please call on 022 - 28104422 / 32

Tuesday, November 15, 2016

How is GST Different from Current Tax Structure?

How is GST Different from Current Tax Structure?
GST (Goods & Services Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence.
What does this mean? What will be its impact? What is the difference between GST and current tax structure?
GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’.
Let us understand the fundamentals of GST, it is a dual concept tax system. Under this system, tax is administered, collected, and shared by both the Centre and the State governments, based on the nature of transaction (within the state or interstate).
The tax components of GST 

While we now know the tax components of GST, it is equally important for you to know the taxes existing in the current regime, and how they are subsumed under GST.
Current Indirect Tax structure


Friday, September 02, 2016

What is GST?

August 3rd, 2016 will be recorded as a red letter day in the history of Indian taxation due to the near unanimous passage of 122nd Constitutional Bill in Rajya Sabha, paving the way for roll-out of GST in India from 1st of April 2017. Goods and Service Tax Bill has significantly evolved over the past decade and is touted as the single largest tax reform in India since independence. It is estimated to boost GDP by 1.5 to 2%. ‘One India, One Tax’ will be the new reality with GST subsuming over ten indirect taxes and making India a common market. Apart from elimination of cascading effect, the benefits of simplified compliance, technological backing and uniform process across India will contribute significantly to ‘Ease of doing Business’. However, the success of a business will significantly depend on the ability to understand and adopt to this new reality as certain existing business practices will have to undergo changes.
Goods and Service Tax is a comprehensive tax levied on manufacture, sale and consumption of goods and services across India. GST is a Destination based Consumption tax, and the taxable event is Supply as against the existing taxable events of sale, manufacture or provision of service. Draft Model GST Law was made public in June 2016, and the government has sought public opinion on the same. It is high time that businesses, industry/trade bodies, professional associations and the like provide valid inputs at an early date, and ensure the final GST Law addresses all the concerns  to make the transition smooth.

Background

The indirect taxation regime in India has undergone many transformations over the past 5 to 6 decades. Introduction of MODVAT scheme in 1986, fungibility of credit between Excise and Service Tax (2004), rollout of VAT (2005 onwards) have over the years increased transparency in tax administration, reduced hassles to tax payers, and eliminated the cascading effect, thus benefitting the consumer. However, the federal structure of India has resulted in tax being administered by both Centre and State. Lack of facility to utilize credits across these two entities has resulted in partial cascading still being left in the system. Added to this, the burden of compliance has also increased due to involvement of multiple agencies. GST precisely addresses these concerns by driving uniformity across India through a single tax and ensuring an unrestricted flow of tax credit. Conceptually, GST is similar to VAT, meaning tax will be applied only on the value addition at each point in the supply chain.

Salient Features

Some of the salient features of GST are:

Registration:

GST Registration threshold is proposed at Rs 4 Lakh for NE states + Sikkim, and Rs 9 Lakh for Rest of India. However, the liability to pay tax will be only after crossing the threshold of Rs 5 Lakh for NE states + Sikkim and Rs 10 Lakhs for Rest of India. Approximately 7-8 million businesses are likely to be registered under GST. Small dealers with turnover below Rs 50 Lakh have the option of adopting the Composition scheme and pay flat ~1 to 4% tax on turnover.

Dual GST:

In consideration of the federal structure of India, Dual GST has been chosen as the apt model wherein tax would be jointly levied by both Centre and the states on supply of goods and services.
The components of Dual GST are:
  • SGST: State GST
  • CGST: Central GST
  • IGST: Integrated GST
On intra-state transactions CGST+SGST will be applicable and on Interstate transactions, IGST will be applicable.

GST Rates:

There are likely to be 3 sets of rates as below:
  • Merit Rate
  • Standard Rate
  • De-Merit Rate
There is also likely to be a lower rate for precious metals and zero-rate for essential goods.

Taxes Subsumed:

The taxes which will get subsumed under GST are:
Subsumed in GSTNot subsumed in GST
Central ExciseBasic Customs duty
Service TaxAlcohol for human consumption
VAT / Sales TaxPetrol / Diesel / Aviation fuel / Natural Gas*
Entertainment TaxStamp duty and Property tax
Luxury TaxToll tax
Taxes on lotteryElectricity Duty
Octroi and Entry Tax
Purchase tax

*To be included only at a later notified date

ITC Utilization:

The manner of availing input tax credit for setoff of tax liability is defined as under:
Input Tax CreditSet-off against liability of
CGSTCGST and IGST (in that order)
SGSTSGST and IGST (in that order)
IGSTIGST, CGST, SGST (in that order)
Please note that CGST and SGST cannot be set off against one another.

IT Infrastructure:

Goods and Service Tax Network or GSTN is a Not for Profit Sec 25/Section 8 company incorporated under the public-private partnership(private companies, central and state government are the stakeholders) to roll out the IT backbone (Backend and Frontend) and portal for meeting all the e-filing requirements of GST. This would be the nodal agency which would control all the processes, forms, and also the data of all the trade that happens in the country.

GST Council:

The council to be formed within 60 days of getting presidential assent, would consist of 2/3rd representation of states and 1/3rd representation of Centre. The GST Council will take all decisions regarding tax rates, dispute resolution, exemptions and so on. Recommendations of the GST Council (75% votes) will be binding on the Centre and states.

Business Process

Registration:

Existing dealers would be auto-migrated and given a 15-digit PAN based GSTIN with following structure.
State CodePANEntity CodeBlankCheck Digit
123456789101112131415
The entity code will be applicable for taxpayers having multiple business verticals within the state.

Returns:

The GST regime introduces the following changes:
  • The GST regime requires all businesses to mandatorily file monthly returns along with the requisite quarterly or annual returns. Even businesses which now file returns quarterly or half-yearly (such as returns for service tax etc.) now need to file returns every month.
  • There will now be ‘3 compliance events every month’ compared to 1 event today. This means, businesses will now need to comply with the requirements of filing GSTR- 1, GSTR-2 and GSTR- 3 (as mentioned below) as against filing 1 return today.
  • The first compliance event (filing GSTR-1) has a due date of 10th of the subsequent month as against the deadline of 20th in the current VAT regime.
  • Composition scheme will no longer be a favourable option since returns need to be filed quarterly and the details in those returns need to be filed relating to purchases, though sales would be lump sum like earlier. Another big deterrent in the scheme would be non availability of input credit to the chain below which would increase the selling price for the composite dealers. This would mean that businesses would reduce their purchases from these dealers.
Regular Dealer: Monthly filing
  • GSTR-1: Upload all sale invoices (By 10th)
  • GSTR-2: Accept the auto-populated counterparty sales as your purchase, and add any missing purchases (By 15th)
  • GSTR-3: Submit the auto-populated GSTR-3 by 20th
Composition Dealer: Quarterly filing
  • GSTR-4: Submit by 18th after quarter-end
GSTR-8: Annual Return for both Regular and Composition by 31st Dec of subsequent year.

Payments:

  • Mandatory e-payment for amount > Rs 10,000
  • Online: NEFT/RTGS/IMPS
  • Offline: Cash/Cheque/DD/NEFT/RTGS etc.
  • Challan is auto-populated, and can be downloaded

Refunds:

Refund process will be automated and wherever applicable 80% refund will be granted provisionally when applied without scrutiny.
Major Impact Areas
Principal areas of impact for business will be:
  • Adoption of Technology is imperative: As all the processes will be online, and return filing is of granular nature (invoice-wise), the taxpayer will have to adopt suitable technology to ensure efficiency and effectiveness. Unlike earlier, paper filing will not be an option.
  • Access to Pan-India market: Intra-state and interstate trades would become tax neutral, and the whole of  India will open up as a market for both sourcing vendors and customers without hassles of compliance.
  • Cash flow planning: Input tax credit on purchase will be provided only provisionally during return filing, and will be confirmed only after corresponding sale has been uploaded and after the liability is discharged by supplier. Hence, cash flows WILL get impacted in case of mismatch. As any supply would be taxable, branch transfers would result in tax liability leading to cash blockage. GST will also be applicable on advances received and reverse charge is extended to goods as well. Businesses will need to rethink how to effectively do business and structure deals.
  • Easier Compliance: GST requires businesses to provide granular level of data (invoice-wise), that needs to be reported with HSN codes. The good news is that compliance is going to get easier with GST replacing most of the prevalent indirect taxes and with the support of technology. With GST, the government has shifted its burden of following up with vendors who have not uploaded their returns by cutting out the input credit.
  • Branch / Supply chain re-engineering: Businesses having multi-state presence due to tax considerations (to avail concessional CST rate) need to re-plan their warehouse and branch networks and locate them nearer to markets rather than state-wise.
  • Pricing strategy: Due to elimination of cascading effect, prices of products are likely to come down. Hence, businesses need to re-align to the new realities in procurement and sale.
  • Re-negotiate contracts: Work contracts and other multi-year supply deals have to be renegotiated to absorb GST rates. As tax would be payable on advance, such conditions need a relook. 

What Next?

With the passage of the 122nd constitutional Amendment Bill in Rajya Sabha, the immediate next steps are:
  • As this is a constitutional amendment, a minimum of 15 state assemblies also need to ratify the bill.
  • Presidential assent to the bill and formation of GST council within the next 60 days from date of obtaining assent, is required.
  • Passing of CGST and IGST Bills (probably as Money Bill) in winter session of parliament and of SGST Bill in 29 state assemblies.
  • Rollout of GST Network by January 2017.
The tasks look daunting, yet achievable.

What next for all of us

With 1st of April 2017 being the likely date for launch of GST, the taxpayer needs to take several preparatory steps in this direction. The transition will be the key for having a clean opening balance to start with.
  1. Input tax credit (in returns/inputs/capital goods) from current regime(CENVAT, VAT) will be carried forward to GST(CGST, SGST). Hence, it is imperative to keep the books updated. It helps companies during assessment as only at that time the number will get picked up and if trail/clarity is not available businesses will go through a lot of financial and non-financial pain.
  2. All the accounting and party masters in ERP need to be kept updated with statutory details filled-in, such that transition to GST is smooth.
As always, Tally has been the pioneer in assisting businesses with understanding and adopting statutory changes. The greatly simplified solution in Tally.ERP 9 will ensure quick migration and easy handling of statutory requirements of GST.

This note has been prepared with publicly available information, however the actual GST rates and business process are likely to undergo significant changes by the time of rollout.

Tuesday, November 17, 2015

Swachh Bharat Cess

Dear Tally User

As you may be aware, the government of India has recently launched the Swachh Bharat Cess, a cess applicable on all Taxable Services from 15th Nov, 2015. Swachh Bharat cess is to be levied at a rate of 0.5% on the value of taxable services vide notification no. 22/2015-ST dated 6th November, 2015. Please note that this cess will be in addition to the service tax leviable on taxable services which means SB cess will be charged on the taxable value (and not on the service tax value).
 
Tally.ERP 9 will be able manage the transaction level and printing in invoice requirement of SB cess. All you need to do is to follow a few simple steps.
 

To access the step-by-step procedure to configure your Tally.ERP 9 to manage your Swachh Bharat cess, please use the below hyperlinks.
  • If you are currently using Tally.ERP 9 Release 4.93 and below, please click here
  • If you are currently using Tally.ERP 9 Release 5.0 and above, please click here

Rest assured, for release 5 users, we will take care of Returns related changes once we receive the notification from the department.

For any difficulty call us on 022 - 32232424 / 64570707