Many accounting software such as, Tally has been made available for helping the clients to prepare their account books, in accordance to the GST rules. This has been done with the implementation of Goods and Service Act in India.

Goods and service tax or GST came into effect in India since July 1st, in the year 2017. This had been done through the implementation of One Hundred and First Amendment of Constitution of India.

How to use Tally for accounting, in accordance to GST rules?

Tally, the accounting software has recently introduced the latest version of Tally ERP (Enterprise source Planning) 9, with latest features of GST. This latest version of Tally ERP 9, helps the users to generate GST ready invoices. It also helps in filing correct GST returns. The user can also generate GSTR-1 and GSTR-2 in JSON format by uploading directly GSTR-2 in the portal of GSTN.

This latest version of Tally ERP 9 GST Release 6, handles all the user’s requirements, those are related with GST. It handles the requirements of generating GST ready invoice, to filing GST returns.

One needs to follow the under mentioned steps, for using the accounting software, Tally.

Step One- To create a company.

Step Two- To enable features of GST.

Step Three- To create a ledger.

To discuss the steps in detail:

Step One- How to create a company?

One needs to follow the following steps to create a company:

  • One needs to go to Gateway of Tally, Following the path Alt+F3>Create Company.
  • One has to then enter the basic information, such as the user’s name, the user’s address, user’s mailing name, address of the company, symbol of currency that is being used in transactions etc.
  • One needs to select “Accounts Only” or “Accounts with inventory” in the “Maintain Field”, as per the requirements of the company.
  • The first date of current financial year is to be shown in the “Financial Year from”. For Example, 1-4-2017 is displayed by default. The user can change the date as per her/his requirements.
  • Next, the Tally Vault password is to be entered, if it needs to be entered.
  • Lastly, Enter or Y is to be pressed to accept and save.

Step Two-How to enable GST features in Tally?

One needs to follow the undermentioned steps to enable features of GST in Tally:

  • One needs to go to Gateway of tally at first. To follow the path Tally>F11: Features>F3: Statutory and Taxation.
  • The screen displays the following options-
    Enable Goods and service tax, GST: YES
    Set or Alter GST Details: YES
  • Another screen will then come into display, where the user will find the option to set the details of GST of the company. For example, the name of the state where the company is registered, the type of company registration, GSTIN number etc.
  • The user now needs to press Enter or Y to accept and save.

Step Three- How to create a ledger?

The user has to now create a ledger, after the creation of the company and the activation of the features of GST have been completed. This creation of ledger will help the user to pass the entries of the accounts in Tally.

Following steps are to be followed by the user, to be able to create a ledger-

  • The user needs to go to the Gateway of Tally, by following the path Tally>Accounts Info>Ledgers>Create.
  • Now the name of the ledger has to be entered, the ledger the user wishes to create. These may be purchase, sales, state tax, central tax, integrated tax, names of stock items and many such more.
  • Now the user needs to select the correct group to which the selected ledger belongs to. For example, the group may be State Tax under duties and taxes group.
  • The other relevant information is to be entered next, by the user.
  • Lastly, the user needs to press the Y key or the Enter key, to accept and save.

The user can start entering or making entries related to accounting, in Tally, after the user has completed all the three above mentioned steps.

For entering the accounting entries in Tally, one has to go to the Gateway of Tally and follow the path Tally>Accounting Vouchers. Tally has several accounting vouchers. These accounting vouchers include Payments, Receipts, Sales, Contra, Purchase and many such more accounting vouchers. The user needs to select the relevant voucher and start passing the entries for the accounting.

The Advantages of Tally ERP 9, Release 6-

  • It helps in maintaining business data of both VAT and GST regimes, in a single company. There is no need to split the data.
  • The user can get an annual financial report containing both GST and VAT data, on the clicking of a button.
  • It helps in minimising the chances of user’s GST return’s rejections.
  • The user can have full confidence on this latest version of Tally ERP 9 to file her/his GST returns easily and conveniently. These GST returns will also be submitted correctly and on correct time by Tally ERP 9.
  • Tally ERP 9 helps in keeping the valuable financial data of the user fully safe and secure, in Tally Vault.
  • The tally ERP 9 helps the user in introducing inventory, payroll, manufacturing, banking, user level security controls, modules of new compliances and many such more.
  • It becomes easy for the user to generate GST ready invoices, with Tally ERP 9 Release 6.
  • Tally ERP 9 detects errors early, saving the time of the user to be able to file accurate returns for GST, with comfort and convenience.
  • The user can generate GSTR-1 and GSTR-2 in JSON format, with the help of tally ERP 9. These can be uploaded in the portal of GSTN.
  • Tally ERP 9 allows printing of GSTR-3B, in a word document, for filing GSTR-3B in the portal.
  • Tally ERP 9 feature of “Marked Voucher” helps in updating the tax consultant of the user on changes made, by sending only the list of updated invoices.
  • Tally ERP 9 helps the user to update her/his tax consultant of all the modified transactions done off late, including the last-minute changes.

Tally ERP 9. Release 6 is the correct accounting software of the current GST era.