GST Ledger Scrutiny

In this blog, lets look at how GST Accounting is done in Tally and how LedgerVision is designed to carry out GST Ledger Scrutiny.

 

GST Accounting in Tally

There are various accounting styles used by accountants while posting GST transactions. Accounting styles differs as per GST rates, Expenditure ledgers, Stock items, GST ledgers etc. Following are some of the accounting treatments used in tally:

1. Separate GST Ledgers are defined by Input / Output and Rate wise GST

For e.g. Input CGST 5% , Input SGST 5%, Output CGST 5%, Output SGST 5% and so on

 

2. GST Ledgers are not defined Rate-wise but only input and Output ledgers are created

For e.g. Input CGST, Input SGST, Output CGST, and Output SGST etc. In this case, rates are maintained at ledger master, stock items or stock item classifications level. If stock items are not maintained then rates are maintained at Expenditure Ledgers or Ledgers classifications

 

3. GST is Combined with only three ledgers of CGST, SGST, and IGST are used.

If GST ledger is debited it will be treated as Input. If Ledger is credited, then it will be treated as output. GST Rates are used as described in point no 2 above

 

4. GST Ledgers are not kept in Duties & Taxes

Normally GST ledgers are kept under Duties and taxes group under current liabilities. But in some cases Input GST ledgers are kept under Purchases Group and Output GST ledgers are kept under Sales Group

 

GST Scrutiny using LedgerVision

LedgerVision scrutinizes each and every accounting entry involving GST.

It is designed to carry our GST Scrutiny for various Accounting Styles in Tally. Common mistakes found and reported in GST accounting are as follows:

  1. Both CGST ledgers or Both SGST ledgers are used instead of one CGST and one SGST ledgers
  2. CGST ledger with different GST rate than GST rate used for SGST ledger
  3. IGST applicable but CGST and SGST posted or vice versa
  4. Stock Items used with different rate and GST entry posted at GST ledgers with different rate
  5. Purchase entry with Output GST ledger or Sales entry with Input GST ledger
  6. Debit note with Output GST ledgers or Credit note with Input GST ledgers

All above mistakes are captured by LedgerVision and listed in GST Scrutiny Report

 

GST Data Bifurcation

Due to various GST accounting styles explain point no 1 above, it is very time consuming to bifurcate data required for GSTR 9 and GSTR 9C filing .LedgerVision bifurcates data in few minutes in following way:

 

1. Party wise and Rate wise GST Data Bifurcation

LedgerVision bifurcates GST data in party and rate wise format.

It gives tabular report with Ledger Group, Party Name, GST Rate, Total Amount of Income / Expenditure with Input and Output GST Details.

 

2. Expenditure wise and Rate wise GST Data Bifurcation

This tabular report includes ledgers from P&L and Fixed Asset group. Data is bifurcated by expense ledger, GST rate and Input and Output GST Details.

This report is useful for filing GSTR 9 and GSTR 9C and TAB 14 table.