GST B2C Sales (Small & Large Invoices) in TallyPrime: 2 Easy Steps

Feb 10, 2024

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by

Rishit Shah

in Difficult, GST in Tally

TallyPrime differentiates between small and large B2C (Business to Consumer) sales for GST reporting purposes.

Here’s how to record them:

Table of Contents

1. Identify Threshold for Large Invoices:

The current threshold for “large” B2C invoice in India is ₹2.5 Lakhs. Any sale exceeding this amount falls under the “Large B2C Invoices” category.

2. Recording Process:

Both small and large B2C sales follow the same general recording process in TallyPrime, with one key difference in tax configuration:

1. Basic Steps:

Create Sales Voucher: Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
Enter Basic Information: Date, customer (select the dedicated B2C sales ledger), optional reference number.
Add Sale Items: Select relevant sales ledgers, enter quantities and rates.
Enable Tax Details: Access through Enter key.

2. Tax Configuration:

Nature of Transaction: Choose based on the item type (Goods, Services).
Place of Supply: Select the appropriate state/country for interstate or intrastate transactions.
HSN/SAC codes: Add relevant codes (mandatory for some industries).
Taxability:
- Intra-state B2C Sales: Apply the applicable SGST & UTGST rates.
- Inter-state B2C Sales:
  - Within India: Apply IGST rate for both small and large invoices.
  - From India to Outside India: Set Taxability to Nil Rated for both small and large invoices.

3. Key Difference for Large Invoices:

In the tax configuration window, after enabling tax details, press F12: Configure.
Choose the appropriate option based on the sale value:
- Purchase – Goods – RCM for intra-state purchases exceeding ₹2.5 lakhs.
- Interstate Purchase – Works Contract for inter-state services exceeding ₹2.5 lakhs.
- Purchase – Goods or Purchase – Services for small B2C invoices (not exceeding ₹2.5 lakhs).

4. Complete the Voucher:

Select the payment ledger (if paid) or outstanding liability ledger (for credit sales).
Press Ctrl+A to save the voucher.

Additional Notes:

Ensure your customer ledger has the correct Registration Type (Unregistered).
Maintain proper documentation for invoices and supporting documents.
Regularly reconcile your GST returns with TallyPrime data for accuracy.

Important Tips:

Consult a qualified accountant for specific guidance on tax calculations and compliance based on your location and industry.
Consider using separate voucher types for small and large B2C sales for easier differentiation and reporting.
Explore e-invoicing options in TallyPrime if applicable for your business size and GST registration type.

By following these steps and understanding the distinction in tax configuration for large invoices, you can accurately record B2C sales in TallyPrime, ensuring proper tax treatment and fulfilling your GST reporting obligations.

Remember, seeking professional advice can significantly benefit your business by avoiding potential errors and penalties.