GST for Ledgers of Non-Revenue Accounts in TallyPrime: 4 Steps

1. Understanding Non-Revenue Accounts in TallyPrime

Non-revenue accounts refer to accounts that do not directly contribute to revenue generation but are essential for business operations.

These accounts include:

• Fixed Assets (e.g., Machinery, Vehicles)
• Investments (e.g., Stocks, Bonds)
• Loans and Advances (e.g., Security Deposits, Employee Advances)
• Liabilities (e.g., Outstanding Expenses, Creditors)
• Provisions (e.g., Tax Payable, Interest Payable)

While these accounts are not part of sales or purchase transactions, GST may still be applicable under certain conditions.

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2. When Does GST Apply to Non-Revenue Accounts?

GST applies to non-revenue transactions in the following cases:

Type of Account	GST Applicability
Fixed Assets	If GST is applicable on purchase/sale of fixed assets (e.g., buying a machine with GST)
Investments	Generally, GST does not apply, except for certain services like mutual fund management fees
Loans & Advances	If an interest-bearing loan is given without a proper agreement, GST may apply
Liabilities	If a liability involves GST (e.g., outstanding GST payments)
Provisions	No direct GST unless related to taxable transactions

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3. Enabling GST for Non-Revenue Accounts in TallyPrime

Step 1: Enable GST in TallyPrime

1. Go to Gateway of Tally > F11 (Features) > GST.
2. Set “Enable Goods and Services Tax (GST)” to Yes.
3. Set “Set/Alter GST Details?” to Yes and enter:
   • GST registration details
   • Tax rates
   • HSN/SAC codes (if applicable)
4. Save the settings.

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4. Creating Non-Revenue Ledgers with GST in TallyPrime

Scenario 1: Purchase of Fixed Assets with GST

If you purchase machinery worth ₹5,00,000 + 18% GST, GST should be applied correctly.

1. Steps to Create a Fixed Asset Ledger

1. Go to Gateway of Tally > Create > Ledger.
2. Enter Ledger Name → “Machinery”.
3. Under Group, select Fixed Assets.
4. Set “GST Applicable” to Yes.
5. Select Type of Supply → Goods.
6. Enter GST Rate → 18%.
7. Save the Ledger.

2. Steps to Record a Purchase Entry for Fixed Assets

1. Go to Accounting Vouchers > F9 (Purchase).
2. Select Supplier Ledger.
3. Select “Machinery” Ledger → ₹5,00,000.
4. GST Automatically Applies → ₹90,000 (18%).
5. Total Invoice Value → ₹5,90,000.
6. Save the Purchase Entry.

3. GST Report Impact

• GSTR-3B → ITC (Input Tax Credit) on Capital Goods
• GSTR-1 → No Impact (as it is a purchase)

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5. Example: Loans & Advances with GST in TallyPrime

GST is not applicable on loans but may apply to processing fees.

Scenario 2: Loan Processing Fees with GST

Your company receives a business loan of ₹10,00,000 with a processing fee of ₹5,000 + 18% GST.

1. Steps to Create a Loan Ledger

1. Go to Gateway of Tally > Create > Ledger.
2. Enter Ledger Name → “Business Loan”.
3. Under Group, select Loans (Liability).
4. Set “GST Applicable” to No.
5. Save the Ledger.

2. Steps to Record Loan Processing Fee with GST

1. Go to Accounting Vouchers > F5 (Payment).
2. Select Bank Ledger.
3. Select “Processing Fee Ledger” (₹5,000).
4. Select GST Ledger (18%) → ₹900.
5. Total Amount Deducted → ₹5,900.
6. Save the Payment Entry.

3. GST Report Impact

• GSTR-3B → ITC on Input Services (Processing Fee)
• GSTR-1 → No Impact

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6. Example: GST on Provisions & Liabilities in TallyPrime

Scenario 3: Outstanding GST Payable

If a company has an outstanding GST liability of ₹50,000, it must be recorded.

1. Steps to Create a GST Payable Ledger

1. Go to Gateway of Tally > Create > Ledger.
2. Enter Ledger Name → “GST Payable”.
3. Under Group, select Duties & Taxes.
4. Set “GST Applicable” to Yes.
5. Save the Ledger.

2. Steps to Record GST Payment

1. Go to Accounting Vouchers > F5 (Payment).
2. Select Bank Ledger.
3. Select “GST Payable” → ₹50,000.
4. Save the Payment Entry.

3. GST Report Impact

• GSTR-3B → Tax Payment Section
• GSTR-1 → No Impact

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7. Conclusion

• GST applies to non-revenue transactions in specific cases, especially when dealing with fixed assets, processing fees, or outstanding GST liabilities.
• TallyPrime allows you to enable GST for non-revenue ledgers, ensuring compliance with tax regulations.
• Proper classification in GSTR-1, GSTR-3B, and GST Annual Computation ensures smooth tax filing.