Most month-end pain in Zoho Books traces back to how tax was set up on day one. Get GST, TDS and TCS configured correctly at the start and reconciliation becomes a routine, not a fire drill. Here’s how we approach each.
GST
Turn on GST and register your details
Enable GST in Settings → Taxes, enter your GSTIN, registration type (Regular / Composition) and the date your registration is effective. If you operate in more than one state, set up each GST registration so place-of-supply logic works.
[edit] Confirm your registration type and the states you’re registered in.
Tax rates, HSN and SAC
Zoho Books ships the standard GST slabs. Attach the correct HSN code to goods and SAC code to services, and set each item’s default tax rate so invoices calculate the right split of CGST/SGST vs IGST automatically.
Place of supply — the thing that trips people up
Intra-state supply splits into CGST + SGST; inter-state becomes IGST. This is driven by place of supply, which follows the customer’s state (with special rules for certain services). Make sure every customer has the correct state on file, or your tax split will be wrong.
Reverse charge
Flag transactions that fall under reverse charge (RCM) so the liability is recorded correctly and shows up in the right return. Set this at the item or transaction level as applicable.
[edit] List the RCM cases that actually apply to your business.
TDS
For applicable vendor payments, enable TDS and set up the relevant sections and rates you deduct under. In Zoho Books:
- Create TDS tax rates for the sections you use.
- Apply TDS on bills/payments so the deducted amount and net payable are recorded.
- Track TDS payable so you can deposit and file on time.
[edit] Confirm the exact TDS sections and rates that apply to you with your CA — don’t assume defaults.
TCS
Where TCS is applicable on your sales, configure TCS tax rates and apply them on invoices so the collected amount is captured and reported correctly.
[edit] Note whether TCS applies to your sales and under which provision.
Reconciling with GSTR-2B
The point of a clean setup is a clean reconciliation. Each period, match your purchase records against GSTR-2B to confirm the input tax credit you’re claiming is actually available. Zoho Books’ GST reports make this a comparison exercise rather than a manual hunt.
A calm month-end routine
With the above in place, month-end becomes a short checklist:
- Review the GST summary (output vs input).
- Reconcile purchases against GSTR-2B.
- Confirm TDS/TCS ledgers before deposit.
- Generate returns from Zoho Books and file.
Want your Indian tax setup reviewed on your own data? Book a free demo and we’ll walk through it with you.