In this article, you will learn all about the latest GST updates and the process of using Tally Software for best results. But before we overload you with information, let’s start with a few basics.
What is GST?
GST , or Goods and Services Tax, is a unified tax applicable in the whole of India. This single uniform indirect tax effectively replaces all other indirect taxes, such as VAT, CENVAT, and many others. GST is touted to be one of the most uniform taxes of all times. It applies to all business, whether large, small or even micro-scaled.
Applicable on both Goods and Services, GST employs a dual system through which both State and Centre stay independent of each other. The Union Finance Minister heads the GST Council with various State Finance Ministers as members.
What are the tax slabs under GST?
GST follows a four-tiered system wherein goods and services will be taxed at 5%, 12%, 18%, and 28%, depending upon various categories. For essential goods, the tax is kept at a standard 0%. This includes what and rice among many others.
Who is taxable under GST?
A very simplistic answer for this is as follows - any person who carries out any business in any part of India is liable to pay GST.
Now that you’re familiar with the basics of GST, let’s move on to the Tally Software.
What is Tally?
A tally is an accounting software, used to manage accounts and inventories. With multiple uses and an easy-to-use interface, Tally is one of the most popular accounting software in India.
Some uses and features of Tally
- Account Management
- Daily accounting
- Finalization of Balance Sheet
- Inventory Maintenance
- Generation of reports for various uses, including tax filing.
Is Tally better than manual accounting?
To put it simply – YES!
In manual accounting, you would first have to pass entries. This is usually followed by making ledgers, trial balance, and profit and loss. Finally, a balance sheet is prepared. Often, balance sheet asset and liability don’t even tally. Not to mention that the entire process is painstaking and time-taking.
With Tally, all you need to do is make a ledger and pass entries. From balancing to profit and loss, it takes care of all other processes. The balance sheet is automatically tallied with each entry and the entire process is smooth and simple and takes almost no effort at all.
Can Tally be used for anything other than accounting?