GST Return Effective Date in TallyPrime: 2 Steps + 3 Examples

In TallyPrime, the GST Return Effective Date allows businesses to specify the date from which GST details should be considered for GST returns.

This feature ensures that transactions before a particular date are not included in the GST reports, making compliance and tax filing more accurate.

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1. Why is the GST Return Effective Date Important?

• It ensures that only relevant transactions are included in GSTR-1, GSTR-3B, and Annual Returns.
• If a company started GST compliance at a later date, transactions before that are excluded from GST reports.
• Useful for businesses that migrated to GST later or registered voluntarily after a specific date.

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2. How to Set the GST Return Effective Date in TallyPrime?

Step 1: Open GST Details in Company Features

1. Open TallyPrime.
2. Navigate to Gateway of Tally > F11: Features > GST.
3. Select Enable Goods and Services Tax (GST): Yes.
4. Enter the GST Registration Details.
5. Locate the GST Return Effective Date field.

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Step 2: Set the GST Return Effective Date

1. In the GST Return Effective Date field, enter the date from which GST returns should be calculated.
2. Press Enter to save.

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3. Example Scenarios for Using GST Return Effective Date in TallyPrime

Example 1: Business Registered Under GST from a Specific Date

Scenario: ABC Traders registered under GST on 1st April 2024, but they have transactions recorded in TallyPrime from January 2024 (before GST registration).

Solution:

• Set GST Return Effective Date as 01-04-2024.
• This ensures that transactions before April 2024 are excluded from GSTR-1 and GSTR-3B.

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Example 2: Voluntary GST Registration

Scenario: XYZ Enterprises voluntarily registered for GST on 1st July 2024, but business operations began in May 2024.

Solution:

• Set GST Return Effective Date as 01-07-2024.
• Transactions before July 2024 will not reflect in GST reports.

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Example 3: Transition from Composition to Regular Scheme

Scenario: A company was under the Composition Scheme until 30th June 2024 and shifted to the Regular Scheme from 1st July 2024.

Solution:

• Set GST Return Effective Date as 01-07-2024.
• Transactions before July 2024 will be treated as composition transactions, and only post-July transactions will be included in GSTR-1 and GSTR-3B.

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4. Impact of GST Return Effective Date on Reports in TallyPrime

• GSTR-1 & GSTR-3B Reports: Transactions before the effective date are not included in GST filing.
• GST Computation Report: Only considers transactions from the effective date onwards.
• Mismatch Prevention: Avoids errors in tax liability calculations.

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5. Verifying the GST Return Effective Date in TallyPrime

• Navigate to Gateway of Tally > Display More Reports > Statutory Reports > GST Reports.
• Open GSTR-1, GSTR-3B, or GST Computation Report.
• Check whether transactions before the set date are excluded.

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Conclusion

The GST Return Effective Date in TallyPrime ensures compliance by excluding pre-GST transactions from GST filings.

It helps businesses avoid mismatches, incorrect tax calculations, and compliance issues.