Apply GST Details in Service Ledger in TallyPrime: 2 Examples

Applying GST details in a service ledger in TallyPrime is crucial for tracking GST compliance and calculating tax for service-based transactions.

Below is a step-by-step explanation, along with examples:

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1. Steps to Apply GST Details in Service Ledger in TallyPrime

1. Enable GST in TallyPrime

1. Navigate to Gateway of Tally > F11: Features > Statutory & Taxation.
2. Enable GST and set Set/alter GST details to “Yes.”
3. Enter your GST registration details, including GSTIN, applicable tax rates, and state.

2. Create or Alter the Service Ledger

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create/Alter.
2. Name the service ledger (e.g., “Consulting Services”).
3. Set Group as Sales Accounts for income services or Purchase Accounts for expenses.
4. Set Maintain GST to “Yes.”

3. Specify GST Details

1. Under GST details:
   • Nature of Transaction: Select an appropriate transaction type, e.g., Sales Taxable or Purchase Taxable.
   • Taxability: Choose Taxable, Exempt, or Nil Rated based on the nature of the service.
   • Integrated Tax Rate: Enter the GST rate applicable to the service, e.g., 18%.
   • HSN/SAC Code: Provide the SAC code relevant to the service.

4. Save the Ledger

After entering all required details, save the ledger for future transactions.

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2. Example 1: Service Ledger for Consulting Services in TallyPrime

1. Scenario:

You provide consulting services with 18% GST applicable.

Steps:

1. Create a ledger named Consulting Services under Sales Accounts.
2. Enable GST and set:
   • Nature of Transaction: Sales Taxable.
   • Taxability: Taxable.
   • Integrated Tax Rate: 18%.
   • SAC Code: 998311 (for management consulting services).
3. Save the ledger.

Recording a Sales Invoice:

• Invoice Amount: ₹50,000.
• GST Calculation:
  • CGST @ 9%: ₹4,500.
  • SGST @ 9%: ₹4,500.
• Total Invoice Value: ₹59,000.

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3. Example 2: Service Ledger for Software Maintenance in TallyPrime

1. Scenario:

You purchase software maintenance services with 12% GST.

Steps:

1. Create a ledger named Software Maintenance under Purchase Accounts.
2. Enable GST and set:
   • Nature of Transaction: Purchase Taxable.
   • Taxability: Taxable.
   • Integrated Tax Rate: 12%.
   • SAC Code: 998314 (for IT support services).
3. Save the ledger.

Recording a Purchase Voucher:

• Invoice Amount: ₹30,000.
• GST Calculation:
  • CGST @ 6%: ₹1,800.
  • SGST @ 6%: ₹1,800.
• Total Invoice Value: ₹33,600.

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4. Benefits of Applying GST in Service Ledger in TallyPrime

1. Accurate Tax Reporting: Ensures precise GST computation and filing.
2. Compliance: Avoids errors in GST returns.
3. Automated Calculations: TallyPrime calculates GST based on the ledger details.
4. Efficient Recordkeeping: Organizes service-based transactions for easy reference.

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5. Conclusion

Applying GST details in service ledgers in TallyPrime is a straightforward process that enhances compliance and accuracy in financial reporting.

By specifying the SAC code, GST rate, and transaction nature, businesses can ensure seamless tax computation for service-based transactions.

This functionality simplifies GST filing and reduces the likelihood of errors.