Introduction:
With GST becoming a core part of business compliance, Tally Prime makes it easy to configure and manage GST returns, ledgers, and invoices.
This guide will help you enable GST in Tally Prime and start using it for billing and returns
Step 1: Enable GST in Company Setting
- Open your company in Tally
- Press F11 (Features) → Choose F3: Statutory & Taxation
- Set “Enable Goods and Services Tax (GST)” to Yes
- Enter the following
- State
- GSTIN (15-digit number)
- Applicable date (usually 01-Apr of the year)
- Press Ctrl + A to save
Step 2: Create GST Tax Ledgers
- Go to Accounts Info → Ledgers → Create
- Create the following ledgers:
- CGST (Duties & Taxes → GST → Central Tax)
- SGST (Duties & Taxes → GST → State Tax)
- IGST (for inter-state transactions)
Step 3: Create GST-Enabled Items
- Go to Inventory Info → Stock Items → Create
- Set GST Rate under Tax Rate Details
- Select HSN Code and applicable tax category
Step 4: Create GST-Enabled Parties
- Go to Accounts Info → Ledgers → Create
- Choose group: Sundry Debtors or Creditor
- Add:
- GST registration type (Regular/Unregistered/Composition)
- GSTIN (if available)
- State (must match GSTIN prefix)
Step 5: Start GST Billing
- Use Sales Voucher (F8) or Purchase Voucher (F9)
- Select items and ledgers created above
- Tally will auto-calculate GST based on transaction type
Step 6: View GST Reports
- Use Display More Reports → Statutory Reports → GST
- You can view:
- GSTR-1, GSTR-3B
- Input Credit Summary
- HSN Summary
Common Errors to Avoid:
- Wrong GSTIN format
- Mismatched state codes
- Missing GST in stock or party ledger
Need GST setup or monthly GST return support? Contact Us for support or remote help.
FAQs – GST Configuration in Tally
No, it is only required for businesses that are registered under GST and want to maintain GST-compliant books and invoices
Yes, Tally Prime provides data export and integration features that help you file GST returns via the offline tool or Tally GSTR app.
Incorrect GSTIN will lead to mismatch in returns and invoices. Always verify GSTIN using government portal before entering.
Yes, Tally allows you to apply item-wise GST rates, HSN codes, and tax classifications.
Go to Display More Reports → Statutory Reports → GST to view GSTR-1, GSTR-3B, and ITC summaries.