
Goods and Services Tax (GST) is the backbone of indirect taxation in India. TallyPrime simplifies GST compliance with automation features that cover everything—from invoice creation to return filing.
This guide will help you activate GST, configure ledgers, make compliant entries, and generate return-ready reports within TallyPrime itself.
✅ Basic Requirements to Enable GST in TallyPrime
Ensure the following are ready:
- ✅ Latest version of TallyPrime installed
- ✅ Business registered under GST
- ✅ Valid GSTIN
- ✅ Email ID & Mobile Number linked to GST portal
- ✅ Correct Financial Year and State set in company configuration
- ✅ Applicable GST rates as per your industry
⚡ Quick Shortcuts
Action | Shortcut Key |
---|---|
Open Statutory & Taxation Settings | F11 → F3 |
GST Details Setup in Masters | Alt + G |
GST Reports & Returns | Alt + G → GST |
View GSTR-1 | Display → Statutory Reports → GST |
File Returns (GSTR-1, 3B) | Alt + E |
🛠️ How to Activate GST in TallyPrime
- Press
F11
→F3
(Statutory Features) - Set “Enable Goods and Services Tax (GST)” to Yes
- Enter Company GSTIN, State, and applicable registration type
- Enable reverse charge mechanism, if applicable
- Accept settings with
Ctrl + A
📁 Master Configuration
🎯 Ledger Creation
A. Sales Ledger
- Under: Sales Accounts
- Is GST Applicable: Yes
- Set Type of Supply: Goods/Services
- Tax Rate: As applicable (e.g., 18%)
B. Purchase Ledger
- Under: Purchase Accounts
- GST Classification: Local/Interstate
- Tax Rate: As per item (e.g., 5%, 12%, 18%)
C. Party Ledger
- Under: Sundry Debtors/Creditors
- Set GST Registration Type: Regular, Composition, etc.
- Enter Party GSTIN
🎯 GST Tax Ledgers
Create three tax ledgers:
- CGST (Central GST)
- SGST (State GST)
- IGST (Integrated GST)
Each under: Duties & Taxes → GST
🎯 Stock Item Creation (for Goods)
- Enable GST: Yes
- Tax Rate: Mention (e.g., 12%)
- HSN/SAC code entry: As applicable
🧾 Recording GST Transactions
A. Sales Voucher
- Go to
F8
(Sales) - Choose party ledger with GSTIN
- Select stock item
- Auto-calculate CGST/SGST or IGST based on state
- Tally generates GST invoice format
B. Purchase Voucher
- Press
F9
(Purchase) - Choose vendor ledger
- Add stock items
- Tax auto-applied
- Save invoice for credit claim
C. Credit Note / Debit Note
- Use
Ctrl + F8
/Ctrl + F9
- Mention original invoice number
- Used for purchase/sales returns
📈 GST Compliance Chart
Document Type Purpose GST Impact
------------------------------------------------------------------------
Tax Invoice Sales entry Taxable outward supply
Purchase Invoice Vendor entry ITC claim
Credit Note Return/discount Tax reversal
E-Way Bill Goods transport > ₹50,000 Mandatory
GSTR-1 Monthly outward supplies Filing
GSTR-3B Summary return Filing
📊 Sample GST Sales Entry Flow
Step | Action |
---|---|
Step 1 | Create Customer Ledger with GSTIN |
Step 2 | Create Sales Ledger with GST rate |
Step 3 | Select Stock Item (with GST Rate) |
Step 4 | Choose state (for IGST/CGST+SGST) |
Step 5 | Auto GST tax calculation by Tally |
Step 6 | Finalize and save voucher |
📄 GST Return Filing from Tally
TallyPrime supports export of GST returns in JSON or Excel formats. Direct filing is supported via connected platforms.
A. GSTR-1
- Go to Display → Statutory Reports → GST → GSTR-1
- Verify invoice-wise data
- Export JSON
- Upload to GST Portal
B. GSTR-3B
- Auto-populated monthly
- Export summary JSON
- File return online
C. GSTR-9
- Annual return with sales, ITC, and liability details
🧮 GST Reconciliation Tips
- Cross-check GSTR-2B and Purchase Register
- Match ITC claimed with vendor invoices
- Use Tally’s Mismatch Report to identify errors
- Review reverse charge transactions monthly
💡 Pro Tips
- Regularly update HSN/SAC codes
- Use
F12
configuration for invoice format control - Enable “Show GST Breakup” in invoices
- Track composition scheme eligibility automatically
❓ Frequently Asked Questions (FAQs)
- What is the use of enabling GST in TallyPrime?
It automates tax calculation, reporting, and return generation based on real-time transactions. - Can I file GST returns directly from Tally?
Tally supports exporting returns in JSON, which can be uploaded on GST portal. - What happens if GST is not configured properly?
Tax may not be calculated, or reports may be incorrect, affecting compliance. - What is the difference between CGST, SGST, and IGST in Tally?
Tally determines tax split based on the location of buyer and seller. - Is GST applicable to service-based companies using Tally?
Yes, service companies can configure service-ledgers and SAC codes. - Can I view tax liability summary in Tally?
Yes, under Display → Statutory Reports → GST → GSTR-3B - How to correct mismatched GST returns in Tally?
Use the “Mismatch in Returns” report and rectify voucher-level errors. - Does Tally support e-invoice and e-way bill?
Yes, e-invoicing and e-way bill modules are available in premium setups. - Can I enable both GST and TDS in the same company?
Yes, you can enable both under F11 → F3 and configure ledgers accordingly. - What if customer/vendor doesn’t have GSTIN?
Tally treats it as unregistered, and tax is calculated accordingly (or exempted based on category).
How to File your Income Tax Return (ITR) in 10 minutes | Easy Filing Process of self prepared ITR |