Invoices are a vital instrument for any business. At Tally, we very well understand that you need to raise different types of GST bill/invoice and this may seem a bit daunting in the GST regime since you are getting used to the new system. Not to worry!

In this blogpost, we will guide you to raise different types of GST Bill/invoice using Tally.ERP 9 and help ensure that you stay GST compliant.

  1. What is a Tax Invoice?

      2. How to create Tax Invoices using Tally.ERP 9 Release 6?

      3. What is Bill of Supply?

      4. How to create Bill of Supply using Tally.ERP 9 Release 6?

      5. How to create Advance Receipt and Advance Payment vouchers in Tally.ERP 9 Release 6?

      6. Transportation of goods without Invoice

What is a tax invoice?

As a registered business, when you sell taxable services or goods then you issue a Tax Invoice.

As per the GST law, the place of supply of goods or services determines the type of tax (CGST, SGST or IGST) that you will be required to charge depending upon whether it is an intrastate transaction, interstate transaction, SEZ (Special Economic Zone) transaction or an export.

How to create tax invoices using Tally.ERP 9 Release 6?

a) Single rate GST bill/invoice: In order to generate a Single Rate GST Invoice in Tally.ERP 9, you need to define tax at item level. Based on the selection of specific item, Tally.ERP 9 will automatically charge respective tax. Make sure that the accounting group/ledger which is chosen in this transaction does not have any defined tax rates. Else, Tally.ERP 9 will first pick rates at accounting group/ledger level, rather than at item level rates.

b) Multi rate GST bill/invoice: Similarly, to generate a Multi Rate GST Invoice, you can define the tax details at each item level. The moment you select those specific items, Tally.ERP 9 automatically selects respective tax rates and generates the invoice.

For ‘Inclusive of tax items’, you can enable the option ‘Allow entry of rate inclusive of tax for stock item’ under F12 configuration in sales invoice and generate an inclusive of tax invoice.

c) Sales and service GST bill/invoice: Let’s suppose, you want to raise an invoice for an intrastate or an interstate sale of goods and services together. Invoice for sale and service together is termed as Composite Supply, and you must determine the principal good and associated service with it. The tax rate applied on the principle good will also be applicable on associated service.

For Example: In GST, along with the supply of steel bars; transport, freight, packing, insurance or labour charges will also get taxed at the same tax rate as that of the steel bars.

In Tally.ERP 9, make a service ledger and define tax details for the service. For the goods, you can define tax details at stock item level. ERP 9 automatically detects the place of supply from the party ledger, tax details from the item level as well as the service ledger; it computes tax based on these details and generates the Tax Invoice.

What is bill of supply?

Dealers registered under Composition Scheme (dealers with turnover of 1 Cr) are not allowed to charge any tax. In such cases, a Bill of Supply is issued instead of a Tax Invoice.

How to create bill of supply using Tally.ERP 9 release 6?

  • Exempted goods or services: Let’s assume that you have sold some exempted goods and services. In Tally.ERP 9, you can set taxability as exempt in two ways. You can do this either in the GST details screen at master level of the exempted goods/services, or while passing the entry you can select the applicable nature of transaction from the tax classification details as Sales Exempt. Tally.ERP 9 will consider the transaction as an exempted sale and generate the Bill of Supply.
  • Seller is a composition dealer: If you are a composition dealer, you will make a normal sales entry but without charging any GST. You can generate invoice by changing the title of the invoice to Bill of Supply by selecting Titling in the print features instead of Tax Invoice.
  • Intrastate branch transfers: If you make an intrastate branch transfer from your main godown to any other branch, then you are not supposed to charge tax. In Tally.ERP.9, you can select Nature of Classification as Branch Transfer Outward and issue a Bill of Supply.

How to create advance receipt and advance payment vouchers in Tally.ERP 9 Release 6?

Sometimes, your supplier might ask for some advance or you may seek advance against an order. In such a case, you will create an advance receipt voucher in Tally.ERP 9 and advance payment vouchers respectively. In GST, the supplier is liable to pay tax on the advances received.

Advance receipt: To create an advance receipt in Tally.ERP 9, go to the receipt voucher section and press Alt +V to mark the transaction as an advance receipt.

In the advance receipt details screen, select the stock item (goods enabled for GST) or ledger (services enabled for GST) and enter the advance amount. Relevant taxable value and tax amount will auto populate. Now you can print this voucher. Select the option Print GST Advance Receipt in the print screen.

Advance payment: If you make an advance payment to a registered dealer, then you do not need to pay tax. But if do so to an unregistered dealer, then you need to issue an advance payment receipt. You can follow the above steps and generate a GST payment invoice by changing the title in the print screen.

Transportation of goods without invoice

In case you have transported goods but not generated GST invoice, then, you can generate Delivery Note while transporting and issue the tax invoice later.

Conclusion

The GST regime calls for altering some business practices in a fundamental way, the most important of which is to inculcate the habit of digitizing business data. You need to digitize your GST bills/ invoices so as to be compliant to GST and Tally.ERP 9 is built with the same perspective.