GST payment and filing of returns are key compliance activities for businesses registered under GST in India. Tally Prime simplifies the process of paying GST and filing GST returns such as GSTR-1, GSTR-3B, and GSTR-9. This step-by-step guide will walk you through the process of making GST payments and filing GST returns in Tally Prime with real examples.
1. Understanding GST Payments and Returns
Businesses must file periodic GST returns to report their sales, purchases, and tax liability to the government. The returns include:
GSTR-1: Details of outward supplies (sales) made by the business.
GSTR-3B: Summary of outward and inward supplies, and the overall GST liability.
GSTR-9: Annual return for a complete summary of transactions during the financial year.
2. Enabling GST Features in Tally Prime
Step 1: Enable GST in Tally Prime
Go to Gateway of Tally → F11: Features → Statutory & Taxation → Enable GST.
Set Enable GST to "Yes".
Fill in the required details such as GSTIN, GST registration type, and other relevant information.
Press Ctrl + A to save the settings.
Step 2: Create GST Ledgers
You must have the appropriate GST tax ledgers created for GST payments. Examples include:
CGST, SGST, IGST, and Cess for the tax liabilities.
GST Receivable for input tax credits (ITC).
3. Making GST Payments in Tally Prime
Step 1: Calculate GST Liability
To pay GST, first ensure that your sales and purchase transactions are recorded in Tally Prime. The system will automatically calculate the GST liability based on the entries you’ve made. This includes both CGST, SGST, and IGST depending on whether the transaction is intra-state or inter-state.
Step 2: Create a Payment Entry for GST Payment
Once the GST liability is calculated, you need to make a payment entry. For example, let's assume the total GST liability is ₹10,000 (₹5,000 CGST and ₹5,000 SGST).
Go to Gateway of Tally → Accounting Vouchers → Payment.
Enter the payment details:
Under the Particulars section, select the bank or cash account from which the GST payment will be made.
In the Account section, select CGST and enter ₹5,000 as the amount.
Similarly, select SGST and enter ₹5,000 as the amount.
Press Enter to complete the payment entry.
Step 3: Generate GST Payment Challan
After entering the payment, you can generate a payment challan for GST payments:
Go to Gateway of Tally → Display → Statutory Reports → GST Reports → Payment.
Select the payment date and the applicable GST liability period.
The GST payment challan will be displayed, and you can take a printout or export it for your records.
4. Filing GST Returns in Tally Prime
Step 1: File GSTR-1 (Outward Supplies)
GSTR-1 contains the details of all outward supplies (sales) made by the business. To file GSTR-1:
Go to Gateway of Tally → Display → Statutory Reports → GST Reports → GSTR-1.
Select the period for which you want to file the return (e.g., monthly or quarterly).
The GSTR-1 report will show a list of sales transactions along with GST amounts. Verify all the details.
If everything is correct, you can export the GSTR-1 report in JSON format by selecting Export → JSON.
This JSON file can then be uploaded to the GST portal for filing.
Step 2: File GSTR-3B (Summary Return)
GSTR-3B is a summary return that businesses need to file monthly. It includes details of total sales, purchases, and the GST liability. To file GSTR-3B:
Go to Gateway of Tally → Display → Statutory Reports → GST Reports → GSTR-3B.
Select the applicable period to view the summary report for outward and inward supplies.
Verify the GST liability, input tax credit (ITC), and other relevant details in the report.
If everything looks accurate, export the report in JSON format by selecting Export → JSON.
Upload the JSON file to the GST portal for filing.
Step 3: File GSTR-9 (Annual Return)
GSTR-9 is an annual return that consolidates the data of all monthly or quarterly returns. It must be filed by all GST-registered businesses.
Go to Gateway of Tally → Display → Statutory Reports → GST Reports → GSTR-9.
Verify the data for the entire financial year, including outward and inward supplies.
If all details are correct, export the GSTR-9 report in JSON format and upload it to the GST portal.
5. Key Points to Remember When Filing GST Returns
Ensure that all sales and purchase transactions are recorded accurately in Tally Prime to avoid discrepancies.
Verify the GST amount and reconcile the ITC claimed with the GSTR-2A and GSTR-3B reports before filing the returns.
Ensure timely filing of GST returns to avoid penalties and interest charges.
Make sure that GST payments are made before the due date to avoid late payment fees.
6. Conclusion
GST payment and filing returns are critical components of the GST compliance process. Tally Prime simplifies the calculation, payment, and filing of GST returns by automatically updating tax liabilities and generating GST reports. By following the steps outlined in this article, you can ensure that your GST payments and returns are accurate and filed on time, thereby maintaining compliance with GST regulations.