GST Annual Computation for Sales of Service to a Regular Dealer as a SEZ Unit in TallyPrime

Here’s an explanation of the Natures of Transactions and the corresponding sections in GSTR-1, GSTR-3B, and GST Annual Computation (GSTR-9) for sales of services to a Regular dealer as an SEZ unit:

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1. Nature of Transactions in TallyPrime

1. Transaction Type: Supply of services.
2. Supply Type: Inter-State supply under GST.
3. Tax Implication: Zero-rated supply (services provided by an SEZ unit are zero-rated). These transactions can be either:
   • With payment of tax (utilizing IGST).
   • Without payment of tax (under a Letter of Undertaking (LUT)).

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2. Reporting in GSTR-1 in TallyPrime

Purpose: Captures outward supplies.

1. Table 6A: Exports

• 6A(i): Supplies to SEZ with payment of tax:
  • Applicable when IGST is charged on the services.
• 6A(ii): Supplies to SEZ without payment of tax:
  • Applicable when services are provided under LUT/Bond.

2. Table 12: HSN-Wise Summary of Outward Supplies

Details like HSN code, taxable value, and tax rate for the services provided.

Example:

• Service Provided: ₹2,00,000
• Tax Rate: 18%
• IGST (if charged): ₹36,000
• Total (if IGST applied): ₹2,36,000.

If provided under LUT:

• Taxable Value: ₹2,00,000.
• Tax: ₹0.

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3. Reporting in GSTR-3B in TallyPrime

Purpose: Monthly summary of liabilities and input tax credit (ITC).

1. Table 3.1(a): Outward taxable supplies (other than zero-rated):
   • Used if IGST is charged.
2. Table 3.1(b): Outward taxable supplies (zero-rated):
   • Used for zero-rated supplies under LUT.

Example:

• With IGST:
  • Taxable Value: ₹2,00,000.
  • IGST: ₹36,000.
• Under LUT:
  • Zero-rated supplies (3.1(b)): ₹2,00,000.

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4. Reporting in GSTR-9 (Annual Return) in TallyPrime

Purpose: Reconciles the annual data filed in GSTR-1 and GSTR-3B.

1. Table 4C: Supplies to SEZ with payment of tax:
   • For services where IGST is charged.
2. Table 5C: Supplies to SEZ without payment of tax:
   • For zero-rated supplies under LUT/Bond.
3. Table 17: HSN Summary:
   • HSN details for service codes (SAC), taxable value, and tax.

Example:

• If IGST applied:
  • Taxable Value: ₹2,00,000.
  • IGST: ₹36,000.
• If under LUT:
  • Taxable Value: ₹2,00,000.
  • Tax: ₹0.

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5. Steps to Record Transactions in TallyPrime

1. Enable GST:

• Activate GST and select “SEZ Unit” under statutory details.
• Go to Gateway of Tally → Features → Statutory & Taxation.

2. Create Ledgers:

• Service Ledger:
  • Group: Sales Account.
  • Nature of Transaction: SEZ Sales (Taxable or Zero-rated).
  • Tax Rate: 18% (if applicable).
• GST Ledgers:
  • IGST Ledger: Under Duties & Taxes with the respective tax rate.

3. Record Sales Invoice:

• Specify the service, rate, and tax (if applicable).
• Choose Nature of Supply as SEZ with/without Tax.

4. Verify GST Reports:

Check GST computation under Display More Reports → GST Reports → GSTR-1/GSTR-3B.

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6. Benefits of Proper Classification in TallyPrime

• Compliance: Ensures compliance with GST rules for SEZ transactions.
• Accuracy: Reduces errors in GST filings and supports seamless audits.
• Tax Credits: Allows recipients to claim tax benefits where applicable.
• Transparency: Facilitates clear reporting in annual returns.

By recording these transactions accurately in TallyPrime, businesses can ensure error-free GST filings and maintain transparency in their books of accounts.