Introduction:
HSN (Harmonized System of Nomenclature) codes are essential for GST compliance in India. They help in the systematic classification of goods. If you’re using Tally Prime for accounting and GST filing, it’s crucial to know how to create and assign HSN codes properly.
In this blog, we’ll guide you step-by-step on how to create HSN codes in Tally Prime and assign them to inventory items for accurate GST reporting.
Step 1: Enable GST in Tally Prime
Before adding HSN codes, make sure GST is enabled.
- Go to Gateway of Tally > F11 (Features) > Statutory & Taxation
- Set Enable Goods and Services Tax (GST) to Yes
- Enter your company’s GST details.
Step 2: Enable HSN/SAC Code Entry
- Press F12 (Configure) in the GST Details screen.
- Set Enable HSN/SAC code to Yes
- Save the configuration.
Step 3: Create or Alter HSN Code at Company Level
- Go to Gateway of Tally > F11 > Statutory & Taxation
- Under GST Details, set the default HSN code if your business deals in a single product line.
Step 4: Create or Modify Stock Items with HSN Code
- Go to Gateway of Tally > Inventory Info > Stock Item > Create
(or Alter if already created)- Under GST Details, enter:
- HSN Code
- Applicable GST Rates (CGST, SGST/UTGST, IGST)
- Save the item.
Tip: If you sell multiple categories of goods, it’s best to assign HSN code at the item level rather than company level.
Benefits of Assigning HSN Code in Tally Prime
- Ensures GST return accuracy (GSTR-1, GSTR-3B)
- Helps auto-calculation of tax
- Avoids notices from tax authorities
- Makes invoicing cleaner and compliant
Final Words
Configuring HSN codes in Tally Prime is a simple but crucial step to ensure GST compliance and smooth business operations. Whether you’re a small trader or a GST-registered business, getting this right saves time and avoids errors in return filing.
Need GST setup or monthly GST return support? Contact Us for support or remote help.
FAQs – HSN Code in Tally
Yes, assigning the correct HSN code is mandatory under GST for proper classification and filing of returns.
Absolutely! You can assign unique HSN codes to each stock item based on its nature and classification.
You can use the official GST HSN finder or consult your tax advisor to identify the right HSN code
HSN codes appear in your GSTR-1 and invoice reports automatically if configured correctly.