Overview of GST and Its Applicability in Tally Prime

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax levied on every value addition. Tally Prime simplifies GST compliance by enabling businesses to configure, record, and manage GST transactions efficiently. This article provides an overview of GST and explains how to use GST features in Tally Prime with a real-world example.

1. What Is GST?

GST is an indirect tax applicable in India, replacing multiple indirect taxes such as VAT, Service Tax, and Excise Duty. It is categorized into:

• CGST (Central GST)
• SGST (State GST)
• IGST (Integrated GST)

GST is applicable based on the type of transaction:

• Intra-State: CGST + SGST
• Inter-State: IGST

2. GST Features in Tally Prime

Tally Prime supports GST-related features such as:

• Configuring GST rates
• Recording GST-compliant transactions
• Generating GST returns

3. Enabling GST in Tally Prime

To use GST features in Tally Prime, follow these steps:

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 GST details such as:

• State
• GSTIN
• Applicable from date

Press Ctrl + A to save.

4. Configuring GST Rates for Items

Assign GST rates to 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 altering a stock item, specify the GST rate under "Taxability." For example:

• Item: Mobile Phones
• GST Rate: 18%

5. Recording GST Transactions

Record GST-compliant transactions such as sales and purchases.

Example:

A business sells mobile phones (GST 18%) worth ₹50,000 to a local customer. The sale involves:

• CGST: ₹4,500 (9%)
• SGST: ₹4,500 (9%)

Step 1: Open Sales Voucher

Navigate to:

• Gateway of Tally → Vouchers → F8 (Sales)

Step 2: Enter Transaction Details

Enter the customer and item details:

• Customer: Local Customer
• Item: Mobile Phones
• Quantity: 10
• Rate: ₹5,000
• Tax: GST @ 18%

Press Ctrl + A to save.

6. Viewing GST Reports

Tally Prime provides various GST reports for compliance and filing.

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: Summary of GST

7. Real-World Example of GST Report

Based on the example sale, the GSTR-1 report will display:

8. Summary

To summarize:

• Enable GST features in Tally Prime.
• Configure GST rates for items.
• Record GST-compliant transactions.
• Generate GST reports for compliance.

9. Conclusion

GST compliance is essential for businesses, and Tally Prime makes it easy to manage GST-related tasks. By using its features effectively, businesses can streamline tax filing and maintain accurate records.