Creating GST Tax Ledgers (CGST, SGST, IGST) in Tally Prime

GST (Goods and Services Tax) is an essential tax regime for businesses in India. In Tally Prime, GST tax ledgers such as CGST, SGST, and IGST need to be created to maintain tax calculations accurately. This article provides a step-by-step guide on creating these tax ledgers in Tally Prime with a real-world example.

1. Importance of GST Tax Ledgers

GST Tax Ledgers are used to record the GST amounts in transactions. These ledgers are categorized into:

  • CGST: Central Goods and Services Tax
  • SGST: State Goods and Services Tax
  • IGST: Integrated Goods and Services Tax (for inter-state transactions)

Accurate creation and use of these ledgers ensure that GST returns are calculated correctly and the business remains GST compliant.

2. Steps to Create GST Tax Ledgers in Tally Prime

Follow these steps to create CGST, SGST, and IGST ledgers in Tally Prime:

Step 1: Go to Ledger Creation

Open Tally Prime and navigate to the following path:

  • Gateway of Tally → Accounts Info → Ledgers → Create

Step 2: Creating CGST Ledger

To create the CGST ledger, follow these steps:

  • Name: Enter "CGST" as the ledger name.
  • Under: Choose "Duties and Taxes" from the list of available groups.
  • Type of Duty/Tax: Select "GST" from the drop-down menu.
  • GST Type of Supply: Choose "Output GST" as CGST is a tax collected on sales.
  • GST Rate: Enter the applicable CGST rate (e.g., 9%).

Press Ctrl + A to save the CGST ledger.

Step 3: Creating SGST Ledger

To create the SGST ledger, follow these steps:

  • Name: Enter "SGST" as the ledger name.
  • Under: Choose "Duties and Taxes" from the list of available groups.
  • Type of Duty/Tax: Select "GST" from the drop-down menu.
  • GST Type of Supply: Choose "Output GST" for SGST.
  • GST Rate: Enter the applicable SGST rate (e.g., 9%).

Press Ctrl + A to save the SGST ledger.

Step 4: Creating IGST Ledger

To create the IGST ledger, follow these steps:

  • Name: Enter "IGST" as the ledger name.
  • Under: Choose "Duties and Taxes" from the list of available groups.
  • Type of Duty/Tax: Select "GST" from the drop-down menu.
  • GST Type of Supply: Choose "Output GST" for IGST.
  • GST Rate: Enter the applicable IGST rate (e.g., 18%).

Press Ctrl + A to save the IGST ledger.

3. Example: GST Tax Ledger Creation for a Sale

Let's assume that a business sells goods worth ₹10,000 to a customer in the same state. The GST rate is 18%, which includes both CGST and SGST at 9% each. Here's how you would create the tax ledgers and record a sale in Tally Prime:

Step 1: Create Ledgers for CGST, SGST, and Sales

Follow the steps mentioned earlier to create CGST, SGST, and a "Sales" ledger under the "Sales Accounts" group.

Step 2: Record a Sale Transaction

To record a sale transaction, follow these steps:

  • Voucher Type: Select "Sales" from the voucher menu.
  • Party Name: Enter the customer's name.
  • Item: Select the item being sold (e.g., "Mobile Phones").
  • Amount: Enter the sale amount (e.g., ₹10,000).
  • GST Details: The system will automatically calculate CGST and SGST (₹900 each, totaling ₹1,800).

Press Ctrl + A to save the voucher.

4. Viewing GST Reports

After recording the transaction, you can view the GST details in the reports section.

Step 1: Open GST Reports

Navigate to:

  • Gateway of Tally → Display More Reports → Statutory Reports → GST Reports

Step 2: View GST Summary

Select the "GSTR-3B" or "GSTR-1" report to view the taxes calculated for CGST, SGST, and the total GST amount.

5. Summary

To summarize:

  • GST Tax Ledgers (CGST, SGST, IGST) need to be created under the "Duties and Taxes" group.
  • These ledgers help in tracking taxes for both intra-state and inter-state transactions.
  • Sales and purchase transactions will automatically calculate and apply the relevant GST amounts based on the rates set.

6. Conclusion

Creating GST tax ledgers in Tally Prime is essential for businesses to manage and comply with GST requirements. By following the steps outlined in this article, businesses can ensure that their GST-related transactions are accurately recorded, making tax filing and reporting easier.




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