The box, filled
The seven statutory figures on the opening screen, with commas, ready to re-key — plus the three-line Schedule-GST that Form 26 asks for from tax year 2026-27.
Free Chartford add-on for TallyPrime
Clause 44 of Form 3CD · Tax audit
The clause that costs you a fortnight, every audit.
Clause 44 wants the whole year’s expenditure split by the GST status of each supplier — seven columns, every rupee placed. Tally has no such report, so it gets rebuilt in Excel each year. This one fills the box inside TallyPrime, from the vouchers you already posted.
or scroll down to see it work ↓
Form 3CD · Clause 44the box you have to fill
(2)Total expenditure
Expenditure in respect of entities registered under GST
(7)Not registered
—Excluded
(3)Exempt supplies
(4)Composition
(5)Other registered
(6)Total (3+4+5)
Inserted by the Income-tax (Eighth Amendment) Rules, 2018 and required in full since AY 2022-23: the break-up of total expenditure into payments to registered persons — exempt, composition and other — and to persons not registered under GST.
TallyPrime 3.0 and above · installs in 2 minutes · read-only · your data never leaves your computer
Why this clause eats a week
Your books hold every figure. Nothing in Tally joins them up.
The registration status sits on the supplier’s ledger. The expenditure sits on the expense ledger. Clause 44 asks you to cross the two — for every voucher of the year — and Tally has no report that does it. So the job becomes an export, a pivot, and a fortnight of judgement calls that nobody records.
What the clause requires
Break up the total expenditure incurred during the year: the amount relating to entities registered under GST — split into exempt supplies, composition dealers and other registered entities — and the amount relating to entities not registered under GST. Capital expenditure is in. Salaries, depreciation and provisions are not a supply and stay out.
And it is not a formality any more. The figures are reconciled against your GST returns, so a break-up assembled by guesswork is an exposure — for the assessee and for the auditor who signed it.
See it at rest
Open it, and the box is already filled.
The statutory line first — the seven figures you re-key into Form 3CD. One key opens the working behind them: every expense ledger, what it contributed to each column, and the vouchers underneath.
Clause 44 of Form 3CD — expenditure by GST statusDEMO COMPANY PVT LTD · 1-Apr-25 to 31-Mar-26
| Expenditure head | (2) Total | (3) Exempt | (4) Compo | (5) Other regd | (7) Not regd | Excluded |
|---|---|---|---|---|---|---|
| Purchase Accounts | ||||||
| Local Purchase | 59,04,940 | 59,04,940 | ||||
| Import Purchase | 68,91,773 | 68,91,773 | ||||
| Packing Material | 4,26,180 | 50,000 | 1,12,400 | 2,63,780 | ||
| Sub Total — in Clause 44 | 1,32,22,893 | 50,000 | 1,12,400 | 61,68,720 | 68,91,773 | |
| Excluded from Clause 44 — GST not applicable, or tagged | ||||||
| Customs Duty | 3,13,889 | 3,13,889 | ||||
| Sub Total — excluded | 3,13,889 | 3,13,889 | ||||
| Indirect Expenses | ||||||
| Commission Paid | 8,40,000 | 6,90,000 | 1,50,000 | |||
| Freight Outward | 2,74,180 | (–)50,000 | 3,24,180 | |||
| Salaries & Wages not a supply | 41,20,000 | 41,20,000 | ||||
Demo company — no real supplier, ledger or balance is shown. A credit note reduces its column (the freight row), and what is not a supply under GST is grouped out, in red, where you can see it and act on it.
What it does
It reads the status where the status lives — on the supplier’s master.
3CD
vchr
Voucher by voucher
Every voucher of every expense ledger is placed in one column from its supplier’s GSTIN or registration type. Not ledger balances. Not a sample.
excl
Excluded, grouped
Salaries, depreciation, provisions and levies sit under their own red band with their own sub-total, inside each head — so you can see what is out and regroup it if you disagree.
sup
Supplier-wise, by status
Creditors banded by GSTIN and registration type. Open a band, see each supplier’s expenditure and the column it reports in, open a supplier, see its vouchers.
tag
Your judgement, saved
Force a ledger or a supplier into any column, or exclude it. The choice is written to the master, so next year’s audit opens already classified.
=0
Proof it is complete
A books check on the face: what the report walked against the same ledgers’ own period balances. The difference must be zero — and it says so.
rule
The rules, with their basis
One key opens every rule the report applied, what it rests on, what to include or exclude, and links to the ICAI Guidance Note and the Income-tax site to verify it.
safe
Read-only, on your data
A report inside your own TallyPrime. It posts no voucher, changes nothing, uploads nothing. No licence key, no expiry.
How it works
Email to filled box in four steps.
- Tell us where to send it. Your name, firm and TallyPrime release — we email you the file, free.
- Load it into TallyPrime. F1 → TDLs & Add-Ons, point it at the file, Ctrl+A. It appears under Gateway of Tally → Chartford.
- Set the audit year (F2). The box fills from your own company data the moment it opens.
- Review and file. Alt+N opens the ledger-wise working; tag anything you would treat differently; re-key seven figures into Form 3CD.
Get it free
No payment, no card, nothing to expire.
Tell us where to send it and we email you the file with install steps and the user manual. It’s free and it stays free — nothing to buy, nothing to activate, yours to keep and to share with the firm next door.
Three emails and nothing else: the file, one check-in the next day, and a version update if one ships. One-click unsubscribe on every one.
Straight answers
Common questions
How does it decide whether a supplier is registered?
From the supplier’s own ledger master: a GSTIN, or a Regular / SEZ registration type, means registered; Composition means column (4); nothing on the master and no GST on the voucher means column (7). It reads what your books already say and does not second-guess it. Where the master is blank, the supplier appears in its own band so you can fill it in or classify it.
What about salaries, depreciation and provisions?
They are not a supply under GST, so they are excluded — grouped under a red band inside their own expenditure head, with a sub-total, never silently dropped. If you treat something differently, one keystroke includes it or forces it into a column, and the choice is saved on the ledger for next year.
Does column (2) include the excluded items?
Your choice, and it is named on screen. The default follows the TAQRB reading — column (2) = (6) + (7), with excluded items outside it. One key switches to the Guidance Note reading, where column (2) is the whole books figure and the excluded items sit inside it. State whichever you followed in Form 3CA / 3CB.
How do I know nothing was missed?
The report prints a books check on its face: the total it walked from the profit-and-loss expense ledgers against those same ledgers’ own period balances, and the difference. On a live company that difference is zero to the paisa — if it ever isn’t, the report says so rather than quietly reporting a short figure.
Is it advice?
No. It is a working aid that applies stated rules to your own data and shows you the basis for each one, with links to the ICAI Guidance Note and the Income-tax site. Reverse charge, imports, SEZ and mixed vouchers need a reviewer’s call — the report flags them and lets you force the treatment your working paper supports. Verify every figure before you file.
Which TallyPrime versions does it work on?
TallyPrime 3.0 and above, where the GSTIN lives on the supplier’s registration details. It is built and tested on 7.1. Tell us your release and we’ll confirm.
Does my data leave my computer?
No. It runs inside your own TallyPrime on your own company data. Nothing is uploaded to us or to anyone else.
Is it really free? What’s the catch?
No catch — no licence fee, no trial clock, no activation key. We ask for your email so we can send the file, check in once to ask if it worked, and tell you if an update ships. We build these because they bring the right people to Chartford.
