GST Annual Computation for Sales of Service to SEZ dealer as SEZ unit in TallyPrime

Here’s a detailed explanation of the natures of transactions and their corresponding sections in GSTR-1, GSTR-3B, and GST Annual Computation (GSTR-9) for sales of services to a Regular-SEZ dealer by an SEZ unit:

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1. Nature of Transactions for Sales of Service to SEZ dealer as SEZ unit in TallyPrime

1. Transaction Type: Sales of services.
2. Supply Type: Inter-State Supply.
3. Taxability:
   • Zero-rated supply (services provided by SEZ units qualify as zero-rated supplies under GST).
   • Can be under:
     • With payment of tax: Using IGST.
     • Without payment of tax: Executed under LUT/Bond.

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2. Reporting in GSTR-1 for Sales of Service to SEZ dealer as SEZ unit in TallyPrime

Purpose: Captures outward supplies.

1. Table 6B: Supplies to SEZ (services):
   • Supplies with IGST payment.
2. Table 6C: Supplies to SEZ without payment of tax:
   • For zero-rated supplies executed under LUT/Bond.
3. Table 12: HSN Summary of Outward Supplies:
   • Records the HSN code (SAC for services), taxable value, and tax rate.

Example:

• Service Provided: Consultancy for ₹1,00,000.
• Tax Rate: 18% IGST.

For IGST paid:

• Taxable Value: ₹1,00,000.
• IGST: ₹18,000.

For LUT/Bond:

• Taxable Value: ₹1,00,000.
• Tax Payable: ₹0.

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3. Reporting in GSTR-3B for Sales of Service to SEZ dealer as SEZ unit in TallyPrime

Purpose: Monthly summary of transactions and ITC.

1. Table 3.1(b): Zero-rated supplies:
   • Records zero-rated services whether under IGST or LUT/Bond.
2. Table 3.2 (Inter-State Supplies):
   • Includes inter-state supplies to SEZ dealers, with state details.

Example:

For IGST Paid:

• Zero-rated supplies: ₹1,00,000.
• IGST: ₹18,000.

Under LUT/Bond:

• Zero-rated supplies: ₹1,00,000.
• Tax Payable: ₹0.

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4. Reporting in GST Annual Computation (GSTR-9) Sales of Service to SEZ dealer as SEZ unit in TallyPrime

Purpose: Consolidates annual data of supplies.

1. Table 5C: Supplies to SEZ without payment of tax:
   • For supplies under LUT/Bond.
2. Table 4C: Supplies to SEZ with payment of tax:
   • For zero-rated supplies with IGST paid.
3. Table 17: HSN-wise Summary of Supplies:
   • Detailed information for service codes (SAC), taxable values, and taxes paid.

Example:

For IGST paid:

• Taxable Value: ₹1,00,000.
• IGST: ₹18,000.

Under LUT:

• Taxable Value: ₹1,00,000.
• Tax: ₹0.

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5. Steps to Record in TallyPrime

1. Enable GST:
   • Activate GST and mark the entity as SEZ Unit in TallyPrime settings.
2. Create Ledgers:
   • Service Ledger:
     • Group: Sales Accounts.
     • Nature of Transaction: SEZ Sales (Taxable/Zero-rated).
   • GST Ledgers:
     • IGST Ledger: 18% under Duties & Taxes.
3. Record the Invoice:
   • Specify the service description, taxability (with/without tax), and taxable value.
4. Generate GST Reports:
   • Navigate to Display More Reports → GST Reports → GSTR-1/GSTR-3B.

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6. Benefits of Accurate Classification in TallyPrime

1. Compliance: Aligns with GST law for SEZ supplies.
2. Tax Credits: Allows the recipient to claim ITC.
3. Simplified Filings: Reduces errors in monthly and annual returns.
4. Audit Readiness: Ensures transparent reporting and smooth audits.

By following this classification, SEZ units can maintain proper compliance and streamline their GST filing process effectively.