GST’s integration with Tally in Organizations

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.