Setting Up TallyPrime for GST (SEZ): 4 Simple Steps + Example

1. Understanding SEZ GST in TallyPrime

Special Economic Zones (SEZs) in India have specific GST rules and regulations.

When setting up TallyPrime for an SEZ unit, it’s crucial to configure the software to accurately handle SEZ-specific transactions.

2. Key Steps for Setting Up TallyPrime for SEZ:

1. Company Creation:

• Create a new company in TallyPrime.
• Enter the SEZ unit’s details, including:
  • Legal Name
  • PAN
  • GSTIN
  • SEZ Unit Code
  • Developer Code
  • Unit Type

2. Master Data Setup:

• Ledgers: Create ledgers for various accounts, including:
  • Sales Account (Domestic and Export)
  • Purchase Account (Domestic and Import)
  • Input Tax (IGST, CGST, SGST)
  • Output Tax (IGST, CGST, SGST)
  • Duty Drawback
  • SEZ Unit Expenses
• Stock Items: Create stock items with appropriate HSN/SAC codes.
• Parties: Create ledgers for suppliers and customers, including foreign suppliers and customers.

3. GST Settings:

1. GST Rates:

Configure GST rates for different products and services, considering applicable exemptions and concessions for SEZ units.

2. Place of Supply Rules:

Set up rules for determining the place of supply for domestic and export transactions.

3. Import/Export Transactions:

Configure settings for import and export transactions, including customs duty and IGST.

4. Duty Drawback:

Set up the duty drawback scheme and configure the related ledgers and calculations.

4. SEZ-Specific Settings:

1. SEZ Unit Details:

Ensure that the SEZ unit details are correctly configured in the company information.

2. SEZ Rules and Regulations:

Familiarize yourself with the specific rules and regulations applicable to your SEZ unit.

3. Tax Exemption Certificates:

Maintain copies of relevant tax exemption certificates.

3. Example Scenario of Setting Up TallyPrime for GST (SEZ):

Let’s assume an SEZ unit imports raw materials, manufactures products, and exports them.

1. Import of Raw Materials:

• Create a purchase invoice.
• Enter the supplier details, product details, and import duty.
• The system will automatically calculate the IGST and credit the Input Tax ledger.

2. Domestic Sales:

• Create a sales invoice.
• Enter the customer details, product details, and applicable taxes (if any).
• The system will calculate the output tax based on the place of supply.

3. Export Sales:

• Create a sales invoice.
• Mark the transaction as an export sale.
• The system will calculate the applicable export duties and taxes.

4. Duty Drawback Claim:

• Create a journal entry to record the duty drawback claim.
• Debit the Duty Drawback Received account and credit the Input Tax account.

4. Additional Tips while Setting Up TallyPrime for GST (SEZ):

1. Consult with Tax Professionals:

Seek advice from tax experts to ensure compliance with the latest SEZ regulations.

2. Regular Updates:

Keep your TallyPrime software updated with the latest GST updates and patches.

3. Maintain Proper Records:

Maintain accurate records of all transactions, including import/export documents and duty drawback claims.

4. Utilize TallyPrime’s Reporting Features:

Generate various reports to analyze your business performance and identify potential tax benefits.

By following these steps and considering the specific requirements of your SEZ unit, you can effectively use TallyPrime to manage your GST compliance and optimize your business operations.