Introduction

Tally is one of the most widely used accounting software for GST compliance in India. Whether you are a small business owner or an accountant, knowing how to enter GST transactions in Tally is essential. In this guide, we’ll walk you through step-by-step GST entries in Tally, including setting up GST, creating invoices, and filing returns.

Step 1: Enable GST in Tally

Before recording GST transactions, you must activate GST features in Tally.

How to Enable GST in Tally?

1. Open Tally ERP 9 or Tally Prime.
2. Go to Gateway of Tally > F11: Features > Statutory & Taxation.
3. Set Enable Goods and Services Tax (GST) to YES.
4. Enter your GST details like GSTIN, state, and applicable tax rates.
5. Save the settings.

Step 2: Create GST Ledgers

To record GST transactions, you need to create different GST ledgers.

Creating GST Tax Ledgers

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create.
2. Create CGST, SGST, IGST ledgers under Duties & Taxes.
3. Set Type of Duty/Tax to GST and select the relevant tax rate.
4. Save the ledgers.

Creating Sales & Purchase Ledgers

1. Go to Ledger Creation and create a Sales Ledger under Sales Accounts.
2. Select GST Applicable and choose the correct tax type (Local/Interstate).
3. Similarly, create a Purchase Ledger under Purchase Accounts.

Step 3: Record GST Sales Entry

When making a sale, you need to enter the invoice details correctly.

Steps to Record a GST Sales Entry

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Select the Sales Ledger (with GST enabled).
3. Select the Customer’s Ledger (Ensure GST details are added).
4. Add the items with applicable GST rates.
5. Select CGST/SGST/IGST Ledgers based on the transaction type.
6. Enter the invoice details and save.

Step 4: Record GST Purchase Entry

For purchases, the process is similar to sales entry but under the purchase voucher.

Steps to Record a GST Purchase Entry

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Select the Purchase Ledger (with GST enabled).
3. Choose the Supplier Ledger (Ensure GST details are added).
4. Enter the item details and applicable GST rates.
5. Select the appropriate GST tax ledgers.
6. Save the voucher.

Step 5: Generate GST Reports & Filing Returns

Tally helps in generating GST reports and filing GST returns easily.

Steps to Generate GST Reports in Tally

1. Go to Gateway of Tally > Display > Statutory Reports > GST Reports.
2. View GSTR-1, GSTR-2, GSTR-3B based on your transactions.
3. Export the reports in JSON format for GST portal filing.

Conclusion

Mastering GST entries in Tally is essential for accurate tax filing and compliance. By following these steps, you can efficiently record sales, purchases, and generate GST reports.

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