How to use Item-wise GST Report

January 12, 2024

The introduction of Goods and Services Tax (GST) in India has revolutionized the way businesses manage their taxes. One of the essential aspects of GST compliance is the generation of detailed item-wise GST reports. For Tally.ERP9 and Tally Prime users the GST calculation is done at the total level in invoices and hence the item wise GST breakup is not visible in the sales and purchase register reports.

This becomes a problem for businesses wanting to track the item-wise or rate-wise GST amounts calculated.

In this blog, we’ll explore the significance and benefits of item-wise GST reports available in EasyReports for Tally Users.

Seamless Integration with Tally Software

Item-wise GST reports in EasyReports seamlessly integrate with Tally.ERP9 and Tally Prime. Which allows users to access detailed insights without the need for additional tools. The familiarity of the environment enhances user experience and simplifies the process of managing GST-related transactions.

Problems of Calculating Item wise GST

In Tally, you can setup GST rates for items in various ways:

• At company level
• At the stock group level
• At the classification level, or
• At the individual item level

Based on the setup of the rates when you enter the items in an invoice the GST is calculated automatically on the selection of the GST ledgers in the transaction. You may choose to modify the amount calculated if you want.

Now at the sales and purchase register report level, the break up of the GST item-wise is not available directly. Also if you have modified the calculated amount then the auto-calculated amount based on the rate setup is not valid.

How EasyReports helps in Item wise GST Report

EasyReports follows a specified logic to generate the item-wise GST report which is enumerated below:

1. The item-wise GST rates are imported during the master sync. This is done based on applicable from dates. To ensure logic for changes in rate from specified date is taken care of
2. The transaction data is available in the EasyReports database with the total GST amount per invoice
3. The GST amount is proportionately allocated to the items based on the GST rate of the items as per applicable rates defined in the masters
4. This ensures that if the calculation of GST is correct then the amount of GST calculated and applied matches the rate
5. If the GST has been overridden or the master rate changed post the transaction entry then the rate will not match. This can be validated simply through a formula field

Benefits of Item Wise GST Report

In conclusion, Tally.ERP 9 and Tally Prime users can unlock a multitude of benefits by harnessing the power of item-wise GST reports. Moreover, these reports, specifically designed for Tally software, not only facilitate tax compliance but also empower businesses with valuable insights, such as the GST-inclusive sales amount. Additionally, from the statutory side, the item-wise GST reports enable you to ensure the correct GST calculation. Also, the break up is available to the accounting and taxation teams. Consequently, as Tally users navigate the dynamic landscape of GST, embracing the capabilities of item-wise reporting becomes a pivotal step toward achieving success in modern tax management.