Expense Ledger to Form Part of Assessable Value in Invoice in TallyPrime

TallyPrime allows businesses to include certain expenses (like freight, packing charges, insurance, handling charges, etc.) as part of the assessable value of goods or services in invoices.

This is particularly useful for GST compliance, where expenses that form part of the transaction value should be taxable under GST.

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1. What is the Assessable Value in GST?

Assessable value is the base value on which GST is calculated. According to GST laws, any expenses incurred before the sale is completed should be added to the assessable value, including:

• Freight/Transport Charges
• Packing & Forwarding
• Handling and Insurance Charges
• Other incidental charges

For example, if a product is sold for ₹10,000, and a transport charge of ₹500 is added, the assessable value becomes ₹10,500, and GST is charged on ₹10,500 instead of ₹10,000.

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2. Enabling Expense Ledgers to Form Part of Assessable Value in TallyPrime

To ensure that expense ledgers are included in GST calculations, follow these steps:

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 Rate
   • HSN/SAC Details (if applicable)
4. Save the settings.

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Step 2: Create an Expense Ledger and Include it in Assessable Value

To create an expense ledger that forms part of the invoice’s taxable value:

1. Go to Gateway of Tally > Create > Ledger.
2. Enter Ledger Name (e.g., “Transport Charges”).
3. Under Group, select Direct Expenses (for trading goods) or Indirect Expenses (for services).
4. Enable GST for the ledger:
   • Set “Include in Assessable Value for GST?” → Yes.
   • Set “Appropriate for GST?” → Goods (for items) or Services (for service-led sales).
   • Set “Type of Supply?” → Services.
   • Define GST Rate, if applicable.
5. Save the Ledger.

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3. Example: Sales Invoice with Expense Ledger in Assessable Value in TallyPrime

1. Scenario

A company sells electronic goods worth ₹50,000. The invoice includes:

• Packing Charges: ₹1,000
• Freight Charges: ₹2,000
• GST: 18%

2. Sales Voucher Entry

1. Go to Gateway of Tally > Accounting Vouchers > Sales (F8).
2. Select Customer Ledger.
3. Select Stock Item (e.g., Laptop – 1 unit @ ₹50,000).
4. Add Expense Ledgers:
   • Packing Charges: ₹1,000
   • Freight Charges: ₹2,000
5. GST is automatically calculated on the total assessable value (₹53,000 = ₹50,000 + ₹1,000 + ₹2,000).

3. Final Invoice Calculation

Particulars	Amount (₹)
Laptop	50,000
Packing Charges	1,000
Freight Charges	2,000
Assessable Value	53,000
GST @ 18%	9,540
Total Invoice Value	₹62,540

Note: GST is charged on ₹53,000, including the expense ledger values.

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4. Viewing GST Reports with Assessable Value Adjustments in TallyPrime

Once expense-ledgers are included in transactions, TallyPrime automatically updates GST reports.

Steps to View GST Reports

1. Go to Gateway of Tally > Display > Statutory Reports > GST Reports.
2. Select:
   • GSTR-1 (for outward supplies).
   • GSTR-3B (for monthly tax payments).
   • GST Annual Computation (for yearly review).
3. Check that the Assessable Value includes additional expenses.

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5. Altering Existing Expense Ledgers for GST Inclusion in TallyPrime

If an expense ledger was not initially included in GST calculations, it can be modified.

Steps to Alter Expense Ledger

1. Go to Gateway of Tally > Alter > Ledger.
2. Select the Expense Ledger (e.g., “Freight Charges”).
3. Set:
   • “Include in Assessable Value for GST?” → Yes.
   • “Appropriate for GST?” → Goods/Services.
4. Save the changes.

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6. Conclusion

• Expense-ledgers like freight, packing, and insurance should be included in the assessable value for GST compliance.
• TallyPrime automates the calculation, ensuring accurate tax application.
• GST reports reflect the updated assessable value, reducing manual errors.