GST Configuration in Tally Prime

Goods and Services Tax (GST) is a key aspect of taxation for businesses in India. Tally Prime simplifies GST configuration, ensuring seamless compliance and efficient handling of GST-related transactions. This guide walks you through the process of configuring GST in Tally Prime with a real-world example.

1. Why Configure GST in Tally Prime?

Configuring GST in Tally Prime enables businesses to:

  • Record GST-compliant transactions.
  • Generate GST returns.
  • Maintain accurate tax records.

2. Enabling GST in Tally Prime

Follow these steps to enable GST features:

Step 1: Open Features Configuration

Navigate to:

  • Gateway of Tally → F11 (Features) → Statutory & Taxation

Step 2: Enable GST

Set Enable Goods and Services Tax (GST) to "Yes." Fill in the required details:

  • State: Select the state where the business is registered.
  • GSTIN: Enter the GST Identification Number.
  • Applicable From: Enter the date from which GST is applicable.

Press Ctrl + A to save the configuration.

3. Configuring GST Tax Rates

Define GST rates for stock items or ledger accounts.

Step 1: Open Stock Item Creation

Navigate to:

  • Gateway of Tally → Create → Stock Item

Step 2: Enter GST Details

While creating or editing a stock item, specify the following details:

  • Taxability: Taxable
  • GST Rate: Enter the applicable rate, e.g., 18%.

Press Ctrl + A to save the item.

4. Configuring GST for Ledgers

Set GST details for sales or purchase ledgers.

Step 1: Open Ledger Creation

Navigate to:

  • Gateway of Tally → Create → Ledger

Step 2: Enter GST Details

Specify the following:

  • Under: Select "Sales Accounts" or "Purchase Accounts."
  • Tax Type: GST
  • Applicable GST Rate: Enter the rate, e.g., 18%.

Press Ctrl + A to save.

5. Real-World Example of GST Configuration

A company sells mobile phones at an 18% GST rate. Here's how to configure GST for this scenario:

Step 1: Enable GST

Enable GST in Statutory & Taxation as described above. Enter the company's GSTIN and state.

Step 2: Configure Stock Item

Create a stock item for mobile phones with:

  • Name: Mobile Phones
  • GST Rate: 18%

Step 3: Configure Sales Ledger

Create a ledger named "Local Sales" under "Sales Accounts" with an 18% GST rate.

Step 4: Record a Sale

Record a sales transaction for ₹50,000 using the configured stock item and ledger. The system will automatically calculate GST as ₹4,500 CGST and ₹4,500 SGST.

6. Viewing GST Reports

Tally Prime generates GST reports automatically after configuring GST.

Step 1: Open GST Reports

Navigate to:

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

Step 2: Select a Report

Choose from reports such as:

  • GSTR-1: Outward Supplies
  • GSTR-3B: Monthly Summary

7. Summary

To summarize:

  • Enable GST features in Tally Prime.
  • Configure GST rates for stock items and ledgers.
  • Record GST-compliant transactions.
  • View and generate GST reports for compliance.

8. Conclusion

GST configuration in Tally Prime is essential for businesses to manage taxation effectively. By following these steps, you can ensure compliance and streamline GST-related processes.




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