What is Tally and GST?

What is Tally?

Tally is an advanced Accounting software. It is Developed by Tally solution Pvt. Ltd, which is in Bangalore based IT solution Company.

It is a Windows-based Software and a Stand-alone Application.

Tally is a record all the daily event of the business.

Description:-

A tally is an accounting tool which is managed your Inventory Info, Purchase and Sales Return, CGST (Central Goods & Service Tax), GST Rate Slabs, Manufacturing, etc.

It is used for

  • Inventory Maintenance
  • Daily Accounting
  • Different reports for tax filing
  • Balance sheet finalization

There are different types of tally version:-

  1. Tally 4.5   5. Tally 8.1
  2. Tally 5.4   6. Tally 9.0
  3. Tally 6.3   7. Tally ERP 9.0
  4. Tally 7.2

The latest version of tally is ERP 9.0 (Enterprise Resource Planning).

Tally ERP 9 is the best software to manage Accounting, Inventory, Invoicing, sales & purchases.

What is GST ?

GST (Goods and Services Tax) is an Indirect tax. Which has replaced much indirect tax in India? GST was implemented on July 1, 2017.

GST is a single value-added tax levied on the multi-stage, comprehensive, sale, destination-based and consumption of goods and services at the national level.

France was the first country to implement GST in 1954. There was other countries with GST is India, Brazil, South Korea,

United Kingdom, Spain, Italy, Australia, etc.

There are 4 types of GST in India

1● CGST (Central Goods and Services Tax)

2● SGST (State Goods and Services Tax)

3● IGST (Integrated Goods and Services Tax)

4● UTGST (Union territory Goods and Services Tax)

  • CGST is collected by the Central Government. SGST is collected by the State Government. Also CGST is applicable to goods and services. CGST tax revenue is for central government whereas SGST tax revenue is for state government.
  • CGST & SGST rate will be applicable on intra-state transactions.
  • In CGST replace all central taxes like Custom duty, CST, Service tax, SAD (Special additional Duty of customs), Central Excise Duty, etc. and it is levied by the central government.
  • In SGST replace the existing tax like luxury tax, Entry tax, Sales tax, Taxes on a lottery, Entertainment tax, betting and gambling, Entry tax not in lieu of Octroi, State cesses and Surcharges in so far as they relate to supply both goods and services, etc. are subsumed.

Example of CGST and SGST

If Ravi is a dealer in Gujarat who sold goods to Ramesh in Gujarat worth Rs.20000. GST rate of 18% will apply. They comprising of 9% SGST and 9% CGST rate. The SGST tax amount here is Rs.1800 (9% of RS 20,000) which are going to the Gujarat government and other Rs.1800 will go to the Central government.

What is IGST ?

  • IGST refers to the integrated both goods and services tax. It is a combined form of IGST and CGST and it is laid on by the government. In IGST tax will be shared between State and Central Government.
  • IGST is applicable on all inter-state supplies goods or/and services and It will supply goods and/or services in both cases export and import from India. Under IGST, Exports would be zero-rated.
  • In IGST supply goods or /and services one Union territory or State to another State or Union territory.
  • An example of IGST:-

If Ravi is a dealer in Gujarat who sold goods to Ramesh in Gujarat worth Rs.50000. The GST rate of 18% will apply. They comprised of 18% IGST. In this case the dealer has to charge Rs.9000 which are going to the Central Government.

  • UTGST is directly under the governance of the central government. The purpose of UTGST bill is to apply a collection of tax on every Intra UT

Supply of goods and service in the union territories in absence of legislature and has similar properties as that of SGST.

  • UTGST is applicable to 5 Union territories.

1● Andaman and Nicobar

2● Lakshadweep

3● Dadra and Nagar Haveli

4● Diu and Daman

5● Chandigarh

  • In Union territories such as New Delhi and Pondicherry both have their own legislatures so the SGST can be applied in UT.
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