GST’s integration with Tally in Organizations

Recently passed GST (Goods & Services Tax) by the Indian Government has proved to be a boon not only

for the Indian tax system but also for the common man. It has helped to simplify the tax processing for

the businesses as well as for a layman. It’s also believed that the GST will help to boost the country’s

revenue system and help lessen the corruption in the country thus helping the overall development.

Earlier, many people would look to avoid taxes due to India’s complicated multiple taxation process.

With GST giving out many benefits to the businesses, one of the benefits that can’t be ignored is the fact

that it allows organizations to automate their businesses. The fact that it integrates seamlessly with

Tally accounting software is a big sigh of relief for those who use Tally ERP for their organizational

functioning. Filing returns for any organization/dealer is a tedious task and it involves lot of manpower

and time. However, with seamless GST integration, filing returns will be much easy thus saving a lot of

time and money required on additional manpower.

Seamless GST Roll Out with latest Tally Release

6 states within India including Maharashtra, Madhya Pradesh, Gujarat, Tamil Nadu, Bihar and Delhi are

ready to roll out the GST ready version of Tally ERP starting 01 July, 2017. Tally ERP 9’s latest update

5.4.3 incorporates GST Tax Bill feature that allows organizations bring a high level of transparency in the

business transactions. Industry experts also opine that Tally ERP 9 will play a major role in automation of

accounting for businesses as all transactions including the return files will be filed under GST integrated

with Tally.

With GST (Goods & Services tax) coming in few months from now, it’s surely going to be a revolution

that would change the dynamics of Indian tax system. This tax system would create a platform wherein

India would be a one common market and the businesses would be at ease to function with big savings

in the costs of logistics from firms across all industries. Some firms stand to gain a lot as the GST rate is

considered to be lower than the current taxes paid by them, while others stand to lose a little as they

think the GST rate will be on a higher scale than the prevailing tax rate.

Integrating GST with Tally ERP 9 would have a really positive impact on all industries and firms of every

size. The latest news is that the GST ready version of Tally ERP is ready for rolling in some of the Indian

States and Union Territories including Delhi, Maharashtra, Madhya Pradesh, Gujarat, Bihar, and Tamil

Nadu. In Tally’s latest update, by using the GST feature, complete transparency in business transactions

can be brought in. From 01 July 2017, a Tally user can file his/her GST tax returns from the software.

Many see it as a really important feature due to its time and cost efficiency, if the user maintains the

masters suitably. Many estimate that around 9 million businesses will be registered under GST, so Tally

ERP is an apt accounting software to be integrated with GST that will help businesses function effectively

thus customizing their resources to the optimum.

There’s very little doubts in the minds of the industry experts that the GST will face lift the tax structure

of India. Though as of now it’s tough to enumerate the GST effects on varied sectors, we can only

know the real impact once the government starts levying it, i.e. from 01st July 2017. Though, the tax slab

rates that the Indian Government has proposed of 5%, 12%, 18% & 28% is viewed to be quite exciting

across varied sectors. Let’s have a look on some of the sectors on which GST will have an impact.

FMCG

Several of the rapidly moving consumer goods companies such as HUL, ITC, P&G will benefit immensely

by this tax structure of a GST rate less than or equalling to 18%. Also, much relies on the exemptions

which are being retained along with the excise benefits. Benefits aren’t expected to be huge and will

happen slowly as per several of the analysts.

E-Commerce

With GST, India will be a single unified market wherein there will be free movement and supply of goods

in every corner. Bringing in more efficiency in costs of the products, this tax system will also eradicate

the spilling effect of taxes on customers.

Automobiles

Industry experts opine that GST will lead to the dropping of on road price of vehicles by 8%. There will

be several key beneficiaries of GST including some really giant companies.

With GST rolling out in few months down the line, it’s important that every industry/sectors get to know

what exactly it is. In order to make aware about the GST regime and for its seamless adoption, the

Confederation of All India Traders (CAIT) has joined hands with Tally Solutions, a software product

company that has created Tally ERP 9.

GST is an indirect tax for the entire nation that will make India a unified common market. Right from the

manufacturer to the consumer, it’s a single tax on the supply of goods and services. Due to credits of

input taxes paid at each stage being available in the following stage of value addition, GST which is now

integrated with Tally software essentially is a tax only on value addition at each stage.

How GST differs from present tax structure?

It’s important to understand the fundamentals of GST as it’s a dual concept tax system. Under this

system, tax is managed, collected and shared by both the State and Centre governments, based on the

nature of transaction. It certainly differs from the present tax structure and would make the life of

people easy, once implemented. Let’s have a look at how GST will differ from the current tax structure:

In the present tax structure there are separate laws for separate tax whereas in GST there would

be only one such law as GST will include several taxes

Currently there are separate rates. In this system there would be one CGST rate and a uniform

rate of SGST across all states

In current system there’s a cascading effect due to credit of CST and several taxes aren’t

allowed. In GST, this situation won’t arise as CST concept is being eliminated with introduction

of IGST

Under current scenario, tax burden on tax payer is quite high. In GST, tax burden is expected to

lessen since all taxes are integrated which make it possible the burden to be divided equally

between manufacturing and services

Due to the existence of cascading effect, some taxes become part of the cost. In GST, the cost

burden is lessened as the mechanism eliminates such effect by offering credit

At present, there’s no concurrent power to both Centre and State on same subject tax matter in

the present tax system. In GST, both Centre and State are entrusted with the power to make law

on GST due to the proposed Article 246A of the constitution

Currently, tax compliance is complex due to the multiplicity of laws and their necessities to be

followed. in GST, tax compliance would be easier as only one law including other taxes need to

be followed

Currently, tax is imposed at two stages in broad manner, i.e. when product moves out of factory

and the other at retail outlet. GST needs to be imposed only at final destination of consumption

and not at several points. This leads to transparency and corruption free tax administration.

Tally ERP 9’s latest release 5.4 rolls out integrating GST bill amendment. As India is preparing for the

biggest tax regime in Indian Taxation history and the scenario of different taxes per state is going to end

soon, Tally ERP 5.4.3 is all set to cover up. This latest release of Tally’s most popular version is unleashed

with the GST feature as it has come with considerable innovations, product & performance

enhancement. So, in order to understand to do both of this path breaking innovations covering Asia’s

largest market sector, we need to understand these two separately, i.e. Release 5.4.3 and GST Bill.

With GST rolling out on 1st July 2017, everyone has been speculating about the tax a lot and about the

time it will be implemented. However nevertheless, the question that’s troubling several SMEs is

whether their business/ERP software is ready for GST and their accounting system has ability to handle

GST effectively. GST (Goods and Services Tax) is undoubtedly one of the most vital tax reforms to be

passed by the Government of India. Under the current tax regime, there are several taxes imposed at

various stages which are borne by the producers and eventually the consumers. With GST all the

multi-level taxation gets eliminated and a single tax is imposed which is quite easier and simple to

understand.

The businesses in India, especially the Indian Manufacturing sector is set to benefit from this singular

taxation module as the sector will become more competitive and will save both time and money. With

GST in place, other taxes such as Excise, VAT, Octroi, Service tax are likely to go out. The GST will work

on a formula which will divide the tax between the centre and the state which will be acceptable to

both. GST is being seen as a long term strategy and the businesses are gearing up to brace the change.

They are adopting the best GST Accounting software that’s set to make their taxation quite easier.

In today’s scenario, nearly all the organizations including small, medium and large firms need accounting

software for their business to execute their accounts, finance, journal, ledger, inventory and tax

payment. This is the most common mentality of every business owner. Keeping this in mind several

accounting firms have now come up with an accounting software that allows auto GST calculations and

support any type of businesses including: service providers, sales & service, jewellery, trade &

distribution, manufacturers, job works and textiles.