Supplies by GST SEZ Companies in TallyPrime: 4 Steps + Example

Supplies by GST SEZ (Special Economic Zone) companies are treated with distinct GST implications due to their tax benefits and compliance requirements.

Here’s a comprehensive guide to handling such transactions in TallyPrime:

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1. Understanding SEZ Supplies in GST in TallyPrime

1. Zero-Rated Supplies:

Supplies to or by SEZ entities are generally zero-rated under GST.

This means no GST is charged if the supplier opts for supplies without payment of tax under LUT (Letter of Undertaking).

2. With Payment of Tax:

SEZ suppliers may also supply goods or services with the payment of GST, which can be claimed as a refund later.

3. Example Scenario:

An SEZ company purchases raw materials for manufacturing from a domestic supplier under LUT.

The supplier does not charge GST but must report the transaction in GSTR-1.

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2. Steps to Configure SEZ Supplies in TallyPrime

1. Enable GST and SEZ Settings

1. Navigate to Gateway of Tally > Features (F11) > Statutory & Taxation.
2. Enable GST and set the applicable GST rates.
3. Under GST details, enable the option for Applicable for SEZ for the respective company or ledger.

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2. Record SEZ Sales

For sales to an SEZ company:

1. Go to Accounting Vouchers (F8) and select the Sales Voucher.
2. Select the SEZ Customer Ledger. Ensure the GST details are enabled and linked to the SEZ classification.
3. Enter the item details, quantities, and rates.
4. GST is automatically zero-rated (if under LUT) or charged (if opted with payment).

1. Example:

• Customer: XYZ SEZ Pvt. Ltd.
• Item: Machinery
• Amount: ₹1,00,000
• GST: ₹0 (under LUT)

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3. Record SEZ Purchases

For purchases from an SEZ company:

1. Go to Accounting Vouchers (F9) and select the Purchase Voucher.
2. Select the Supplier Ledger. Set the supplier’s GSTIN and configure them as SEZ under GST settings.
3. Enter item details.
4. GST input credit (if charged) or zero-rated purchase is recorded accordingly.

1. Example:

• Supplier: ABC SEZ Ltd.
• Item: Raw Material
• Purchase Value: ₹50,000
• GST: ₹0 (as zero-rated supply)

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4. Reporting SEZ Transactions in TallyPrime

1. View SEZ sales and purchase details under GST Reports.
2. Access GSTR-1 for outward supplies and GSTR-2 for inward supplies.
3. Verify SEZ transactions are appropriately classified in returns.

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3. Advantages of Using TallyPrime for SEZ Supplies

1. Automation: Automatic application of GST rates based on SEZ configuration.
2. Compliance: Simplified generation of GST reports and returns, reducing errors.
3. Flexibility: Handles both zero-rated and taxable SEZ supplies.

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4. Conclusion

TallyPrime ensures seamless handling of SEZ transactions by automating tax calculations, maintaining compliance, and streamlining reporting.

Whether you’re dealing with inward or outward supplies, TallyPrime helps businesses focus on operations while ensuring they adhere to GST laws.