For GST Transaction in Tally.ERP9, first we have to Activate GST in Tally.ERP9 as a Regular Scheme. Next, the following Ledgers are essential and required to Create for GST transactions..
- Bank Account
- Party Ledger (Debtor / Creditor)
- GST Ledger
- Sales Ledger
- Purchase Ledger
- Service Ledger
- Rounded Off (+/-) Ledger
1- Activate GST for Your Company in Tally.ERP9
To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Once activated, GST-related features are available in ledgers, stock items, and transactions, and GST returns can be generated.
GST Registrations are of two types…
1. GST Regular Scheme ( for Regular Dealer)
The GST regular scheme is for the general taxpayers whose turnover is above the threshold limit.
Under the GST regular scheme, all individuals with turnover above 40 lacs are required to take GST Registration. They are required to pay GST on goods & services as per the applicable rates and do regular GST return filing
2. GST Composition Scheme ( for Composite Dealer)
The composition scheme is meant for small businesses whose turnover of taxable goods not more than₹1.5 crores, where GST has to be borne by the seller @1% of such turnover by traders, @2% bymanufacturers, 5% for Restaurants & 6% for Service Providers.
A Composition Dealer has to issue Bill of Supply. They cannot issue a Tax Invoice. This is because the tax has to be paid by the dealer out of pocket. A Composition Dealer is not allowed to recover the GST from the customers.
(A) Activate GST for Regular Dealers
1. Open the company for which you need to activate GST.
2. Press F11 > F3 .
3. Enable Goods and Services Tax (GST) – Yes .
4. Set/alter GST details – Yes . The GST Details screen appears.
5. State – shows the State name as selected in the Company Creation screen. This helps in identifying local and interstate transactions according to the party’s state.
6. Set the Registration type as Regular .
7. You can keep the rest default fields as same and don’t change ( but you can change as per your requirements)
(B) Activate GST for Composition Dealers
1. Open the company for which you need to activate GST.
2. Press F11 > F3 .
3. Enable Goods and Services Tax (GST) – Yes .
4. Set/alter GST details – Yes .
5. The State field helps in identifying local and interstate transactions according to the party’s state. If you change the state here, the company details will get updated.
6. Set the Registration type as Composition .
7. Based on your business type, select the Basis for tax calculation .
[ For outward supplies, the total of taxable, exempt and nil rated will be considered as the Taxable Value .
For inward supplies, the total value of purchases made under reverse charge will be considered as the Taxable Value . ]
You can record transactions using the ledgers with GST details, and print invoices with GSTIN.
2. Creating Bank Account Ledgers in Tally.ERP9
Bank ledgers contain relevant information about a bank that you use to make or receive payments. You can provide information such as Bank name, Account no., IFS code, and address while creating bank ledgers.
To create a bank ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the bank for the bank ledger.
3. Select Bank Account from the List of Groups, in the Under field.
Note: The Books Beginning date is pre-filled in Effective Date for Reconciliation field.
4. Provide the following details in Bank Accounts details:
- A/C holder’s name – It prefills the company name; however, you can alter this name by pressing Backspace.
- A/c no. – Provide the account number of your bank.
- IFS code – Provide the IFS code for your bank.
Note: If the IFS code in incorrect, the system prompts the warning message “Invalid IFS Code. The IFS Code must contain 4 alphabets, followed by 0 and 6 numbers/alphabets. For example, UTIB0000221.”
- Bank name – Select the bank name from the List of Banks.
The Ledger Creation screen appears as shown below:
Note: The List of Banks is displayed only when TSS and internet connectivity is available. Additionally, the Bank Configuration displays options that are applicable for the bank you select.
5. Under Bank Configuration: o Enable Set cheque books. Enter the details of the cheque range in the Cheque Book Management screen as shown below:
- Enter the correct cheque numbers and press Enter to navigate to the Ledger Creation screen.
- Enable Set cheque printing configuration? to Yes. [ If your want to Print Cheque]
[Practical Assignment]
Create the following Bank Ledger with Opening Balances given:
| Bank Account : | Opening Balance |
| HDFC Bank Axis Bank ICICI Bank State Bank of India | 10,000 65,000 80,000 30,000 |
3. Creating Party Ledgers (Sundry Debtor / Sundry Creditor) in Tally.ERP9
A business deals with customers, wholesalers, retailers, Suppliers and many such business parties on a day-to-day basis. You need to create party ledgers to record transactions that you make, which may involve Sales , Purchase, Receipts or Payments, or Sales or Purchase from these parties.
To create a Party Ledger:
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the Party ledger
3. Select Sundry Creditors / Sundry Creditors from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to No,.
5. In Mailing details, the State is your default local State. You can change name of State from the State List if your Suppliers belongs to Outside State.
6. Enable the option Set/Alter GST Details? to open the GST Details screen.
- Select the relevant Registration Type from the List of registration Types.
- Enter the 15-digit GSTIN or UIN issued by the tax authority.
- If the supplier is an e-commerce operator, then enable the option Behave as e-Commerce Operator?
The GST Details screen appears as shown below:
- Press Ctrl+A to accept.
The Ledger Creation screen displays as shown below:
Important Points:
- GST involves within State (Local) and Outside State (Outside).
- GST within State transactions are classified into CGST & SGST & Outside State transaction is IGST.
- Tally.ERP9 will select CGST , SGST (with state transaction) or IGST (outside State transaction) on the basis of Party Ledger Address i.e. State & Party Registration type i.e. Composition or Consumer or Regular or Unregistered. If Party is Registered either under Composition or Regular, then GSTIN / UIN No. has to be mentioned. Tally.ERP9 will validate the GSTIN / UIN No. on the basis of State selection under Mailing details.
- So the most important part at the time creation of Party Ledger is its selection of State in Mailing Address and type of Registration under Tax Registration Details as per screen below:
- Tally.ERP9 will calculate GST automatically on the basis of GST Rate given in Items & Goods in case of Accounts with Inventory and in case of Accounts only GST Rate given in Sales or Purchase Ledger:
Maintain Balances Bill-by-Bill & Default Credit Period (if you require) :
This functionality is available only, if you have Set Maintain Bill-wise details to Yes in F11: Features > F1: Accounting Features.
This option is applicable when you want the balances to be maintained Bill by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is displayed as shown.
If the total amount of all your bills covers the Opening Balance, the On Account becomes NIL. You could have Bills totalling beyond the Opening Balance. In the screen shown above, there are two bills 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account.
Define the Default Credit Period :
The credit period may be given for Sundry Debtors and Sundry Creditors. The number of credit days or period can be defined in various ways:
| Suffix | Example | |
| Days | None | 5 is considered as 5 days. |
| Weeks | W | 5 W is considered as 5 weeks. |
| Months | M | 5 M is considered as 5 months. |
| Year | Y | 5 Y is considered as 5 years. |
Set the option Check For Credit Days During Voucher Entry to Yes to get a warning message when the party ledger selected in a transaction has exceeded the credit period, and outstanding bills have not been cleared. The warning message appears as shown below:
This will ensure that there is better control over credit period and outstanding amounts to be received and paid.
[Practical Assignment]
Create the following Sundry Debtor and Sundry Creditor Party Ledgers with all information given:
Sundry Debtor
| Name of Party | Address with State | Registration Type | GSTIN / UIN No. | Opening Balance |
| Corporate Customer: | ||||
| Adarsh Tiles Pvt. Ltd. | Odisha | Regular | 21AAACC1206D2ZR | 10,000 |
| Kanan Co | Odisha | Regular | 21AAACC1206D2ZR | 5,000 |
| Lexsite Pvt. Ltd. | Odisha | Regular | 21AAACC1206D2ZR | 1,50,000 |
| Rony Antony & Co | Odisha | Regular | 21AAACC1206D2ZR | 1,00,000 |
| Sodexo Gift Voucher | Odisha | Regular | 21AAACC1206D2ZR | 1,20,000 |
| Wholesale Customer: | ||||
| Adersh and Computers | Odisha | Regular | 21AAACC1206D2ZR | 11,500.00 |
| Eric Lazarus | Odisha | Regular | 21AAACC1206D2ZR | 2,000.00 |
| Mr. Sachar | Odisha | Regular | 21AAACC1206D2ZR | 10,000.00 |
| Shweta & Co (Debtors) | Odisha | Regular | 21AAACC1206D2ZR | 7,500.00 |
| Stabilo Computers | Odisha | Regular | 21AAACC1206D2ZR | 9,000.00 |
| Sudershan and Co | Odisha | Regular | 21AAACC1206D2ZR | 8,000.00 |
| Tams & Co | Odisha | Regular | 21AAACC1206D2ZR | 5,000.00 |
| Local Customers: | ||||
| Chitra & Co. | Odisha | Consumer | 10,000 | |
| DFG Co. | Odisha | Consumer | 5,000 | |
| FGH PL | Odisha | Unregistered | 1,50,000 | |
| Kanchan.Com | Odisha | Composition | 21AAACC1206D2ZR | 1,00,000 |
| Laxmi & Com | Odisha | Composition | 21AAACC1206D2ZR | 1,20,000 |
| Shailesh and Sons | Odisha | Consumer | 10,000 | |
| Outside Customers (IGST): | ||||
| Akhil & Co | KARNATAKA | Regular | 29AAACC1206C2ZB | 6,000 |
| Darshan and Sons | PUNJAB | Regular | 03AAACC1206D1ZQ | 8,000 |
| Eric Enterprise | TAMIL NADU | Regular | 33AAACC1206D1ZN | 10,000 |
| HJK Industries | MAHARASHTRA | Regular | 27AAACC1206D1ZG | 10,000 |
| Shrinivas & Co. | WEST BENGAL | Regular | 19AAACC1206D2ZC | 7,000 |
| Shrinivas Pvt.Ltd. | CHHATISGARH | Regular | 22AAACC1206D1ZQ | 5,000 |
Sundry Creditor
| Name of Party | Address with State | Registration Type | GSTIN / UIN No. | Opening Balance |
| Local Creditor: | ||||
| ACER India Ltd | Odisha | Regular | 21AAACC1206D2ZR | 35,000 |
| Ezone Computers | Odisha | Regular | 21AAACC1206D2ZR | 35,000 |
| HCL Limited | Odisha | Regular | 21AAACC1206D2ZR | 75,000 |
| i Ball Industries | Odisha | Regular | 21AAACC1206D2ZR | 40,000 |
| Intel Solutions | Odisha | Regular | 21AAACC1206D2ZR | 50,000 |
| Radian Techno Ltd | Odisha | Regular | 21AAACC1206D2ZR | 70,000 |
| Samsung Pvt Ltd | Odisha | Regular | 21AAACC1206D2ZR | 60,000 |
| Other Creditors: | ||||
| Supreme Furniture | Odisha | Unregistered | 8,000 | |
| Excel IT Care | Odisha | Composition | 21AAACC1206D2ZR | 4,500 |
| Honda Motors Ltd. | Odisha | Consumer | 3,500 | |
| Shree Enterprises | Odisha | Regular | 21AAACC1206D2ZR | 0 |
| N. Jatania & Co, | Odisha | Regular | 21AAACC1206D2ZR | 0 |
| PD Advertising | Odisha | Regular | 21AAACC1206D2ZR | 0 |
| Outside Creditor (IGST): | ||||
| Sarala & Co | DELHI(UT) | Regular | 07AAACC1206D1ZI | 40,000 |
| Shwetha & Sons | RAJASTHAN | Regular | 08AAACC12061ZG | 20,000 |
| Sony India Limited | MAHARASHTRA | Regular | 27AAACC1206D1ZG | 90,000 |
| Tally DCP | UTTARAKHAND | Regular | 05AAACC1206D1ZM | 1,00,000 |
| Tally MTP | ASSAM | Regular | 18AAACC1206D1ZF | 46,000 |
| Thakral Infotech Ltd | TAMIL NADU | Regular | 33AAACC1206D1ZN | 82,000 |
4. Creating GST Ledger (CGST / SGST / IGST) under Duty and Taxes Group in Tally.ERP9
Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like GST, and other trade taxes and total liability.
To account for the different taxes to be paid under GST (central tax, state tax, union territory tax, integrated tax, and cess), you have to create a tax ledger for each tax type.
The following GST Ledgers will be created :
i. SGST [ State Tax for both Purchase and Sale within State ]
ii. CGST [ Central Tax for both Purchase and Sale within State ]
iii. IGST [ Integrated Tax for both Purchase and Sale Outside State]
I. To create ‘SGST’ ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. In Under, select Duties & Taxes.
3. Select GST as the Type of duty/tax.
4. Select State Tax as the Tax type.
Note : Percentage of Calculation should be 0% ( Don’t Change ) due to multiple Tax Rate
Similarly, you can create ledgers CGST & IGST by selecting the relevant Tax type under GST.
II. To Create CGST Ledger :
III. To Create IGST Ledger :
[Practical Assignment]
Create the following GST Ledgers :
| Duties & Taxes: CGST SGST IGST |
5. Creating Sales and Purchase Ledgers for GST Compliance in TallyERP9
If many items you sell have the same tax rate, specify the tax rate and other GST details in your sales ledger. Similarly, if the items you purchase have the same tax rates, update your purchase ledger.
If you sell items with multiple tax rates, you can still maintain a single Sales Ledger for both within and outside State Sales, and record all GST details at the stock item or stock group level. You can create a single Purchase Ledger both for within as well as outside State Purchase, similarly.
I. Creating a Sales Ledger: Sales-GST/IGST (both for Local & Outside State)
To Create a Sales Ledger i.e. GST-Sales
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the Sales ledger i.e. GST-Sales
3. Select Sales Account from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to Yes ,.
5. Is GST Applicable – Applicable.
6. Set/alter GST Details – No,
Don’t specify the details in the GST Details because GST Rate specified in all Items will automatically Calculate the CGST and SGST as well as IGST,.
7. Select the Type of supply. By default the type of supply is set to Goods.
8. Press Ctrl + A to save.
[ Note : Only one Ledger i.e. GST-Sale will be created for all type of GST Sales ]
II. Creating a Purchase Ledger: Purchase-GST/IGST (both for Local & Outside State)
To Create a Purchase Ledger i.e. GST – Purchase (Local)
- Follow the steps used for Creating the Sales Ledger i.e. GST-Sales as above.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the Sales ledger i.e. GST-Purchase (Local)
3. Select Purchase Account from the List of Groups in the Under field.
4. Set the option Inventory values are affected? to Yes ,.
5. Is GST Applicable – Applicable.
6. Set/alter GST Details – No,
Don’t specify the details in the GST Details because GST Rate specified in all Items will automatically Calculate the CGST and SGST as well as IGST.
7. Select the Type of supply. By default the type of supply is set to Goods.
8. Press Ctrl + A to save.
[ Note : Only one Ledger i.e. GST-Purchase (Local) will be created for all type of GST Purchase within State ]
[Practical Assignment]
Create the following Purchase & Sales Ledgers:
| Sales Account: Sale – GST/IGST Purchase Account: Purchase – GST/IGST |
6. Creating Service Ledger with GST Compliance in Tally.ERP9
In case of Service oriented Business like…Chartered Accountant, Lawyer, Advertising Agency, Consultant, Architectures etc.. they provide Service to the customer and provide Bill / Invoice with GST Compliance. So in this case, Tally.ERP9 provides Accounting Invoice with auto GST Calculations, provided all Service Ledgers has to be created with GST Rate ( as applicable).
For Example:
Create a Ledger – Audit Free with GST 28%
Setup: Create a Ledger, ‘Audit Fee’ under Direct Income with GST Applicable and Set/Alter GST Details – YES , with Type of Supply – Service as per screen below:
1. Set/alter GST Details – Yes , specify the details in the GST Details screen below, and save.
Nature of transaction : Select Sales Taxable from the Natures of Transactions List as above.
[Select Sales Exempt , if the type of supply is exempted from tax under GST, or select Sales Nil Rated , if the tax rate applicable to the type of supply is 0% under GST.]
To specify further GST-related details , click F12: Configure .
2. Type of supply – Services .
3. Press Ctrl + A to save.
[Practical Assignment]
Create the following Service Ledger under Direct Income with GST Compliance :
| Direct Income | GST Rate |
| Service Charges (12%) | 12% |
| Installation Charges (5%) | 5% |
| AMC Charges (15%) | 18% |
7. Creation of Rounded off (+/-) Ledger for rounding the Invoice Value in Tally.ERP9
You can create a Ledger ‘Rounded off (+/-)’ to round-off the invoice value automatically.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create / Alter .
| Note : If you already created the given Ledger Rounded Off (+/-), you can alter as below |
2. Set Type of Ledger? as Invoice Rounding .
3. Select the Rounding method as Normal Rounding and enter the Rounding limit to 1 .
4. Under Statutory Information, all options should be set to Not Applicable .