Managing multiple GST rates on a single sales invoice is one of the most common requirements for Indian businesses. Whether you are selling a mix of goods and services or dealing with products taxed at different slabs, Tally Prime handles it with precision. This guide walks you through the entire process step by step so you can create accurate, compliant invoices without confusion.
What Are Multiple GST Rates in a Sales Invoice?
A single invoice can carry items taxed at different GST rates — 5%, 12%, 18%, and 28% — depending on the HSN/SAC code assigned to each item. Tally Prime automatically calculates the correct tax for each line item and consolidates the totals at the bottom of the invoice. This is essential for businesses dealing in diverse product categories under a single transaction.
Prerequisites Before You Begin
Before creating the invoice, make sure the following are in place in your Tally Prime company.
Your company must have GST activated under Company Features. Each stock item must be assigned the correct HSN code and GST rate under its master configuration. The sales ledger should be linked to the appropriate GST tax type — IGST for interstate or CGST/SGST for intrastate transactions. The customer ledger must also carry the correct state and GSTIN details.
Step-by-Step: Creating a Sales Invoice with Multiple GST Rates
Step 1 — Open the Sales Voucher
Go to Gateway of Tally, then select Vouchers, and press F8 to open the Sales voucher. Alternatively, you can navigate through Accounting Vouchers and select Sales.
Step 2 — Select the Voucher Mode
Tally Prime gives you two modes — Item Invoice and Accounting Invoice. For GST compliance with multiple items and rates, always use Item Invoice mode. Press Ctrl+H if you need to change the mode.
Step 3 — Fill in the Party Details
Select the customer ledger from the Party A/c Name field. Tally Prime will auto-populate the billing address, GSTIN, and state. Verify that the Place of Supply is correctly set, as this determines whether IGST or CGST+SGST is applied.
Step 4 — Add Items with Different GST Rates
In the item table, add each product one by one. For every item, Tally Prime picks up the GST rate from the stock item master. You can add items with 5%, 12%, 18%, or 28% GST on the same invoice. The system calculates tax per line item independently.
Step 5 — Verify the Tax Breakup
After entering all items, scroll down to the tax ledger section. Tally Prime automatically splits the tax into CGST and SGST (or a single IGST for interstate). You will see a separate row for each GST slab. Confirm these figures match your expectation.
Step 6 — Add Narration and Save
Add a narration if required, then press Ctrl+A or Enter to save the voucher. Tally Prime validates the GST details before saving.
GST Rate Slab Reference for Invoicing
| GST Rate | CGST | SGST | IGST | Common Items |
|---|---|---|---|---|
| 5% | 2.5% | 2.5% | 5% | Essential food items, transport services |
| 12% | 6% | 6% | 12% | Processed foods, business class air travel |
| 18% | 9% | 9% | 18% | IT services, most manufactured goods |
| 28% | 14% | 14% | 28% | Luxury goods, automobiles, tobacco |
Key Settings to Check in Stock Item Master
Getting the stock item master right is the foundation of accurate multi-rate invoicing. For each item, open the stock master via Inventory Info and confirm the following fields are correctly filled.
The HSN/SAC code must match the official GST schedule for that product. The GST Rate should reflect the applicable slab. The Taxability field must be set to Taxable, not Exempt or Nil Rated. If the item has any cess applicable, that should also be configured here.
How Tally Prime Handles Tax Calculation Automatically?
Tally Prime does not require manual entry of tax amounts for each line. Once the stock item masters are set up correctly, the software reads the GST rate from the item, applies it to the transaction value, and places the tax amounts against the respective CGST, SGST, or IGST ledgers. On a multi-rate invoice, you will see a consolidated tax section at the bottom that groups all CGST together and all SGST together across different slabs, which is the correct GST invoice format as per GSTN requirements.
Printing a GST-Compliant Invoice
After saving the voucher, press Alt+P to print. Tally Prime’s default GST invoice print format includes the GSTIN of both parties, HSN/SAC codes, item-wise rate and tax amount, and the tax summary at the bottom. You can customise the print format under Print Configuration if your business requires a branded layout.
Common Mistakes to Avoid
Assigning the wrong HSN code to a stock item leads to incorrect GST rate application and potential GSTR-1 mismatches. Not setting the Place of Supply correctly results in IGST being applied on intrastate transactions or vice versa. Mixing exempt and taxable items without proper ledger separation causes reconciliation issues. Always run a GST Audit report in Tally Prime after month-end to catch such errors before filing.
Frequently Asked Questions
Q1. Can I include both goods and services on the same invoice in Tally Prime?
Yes. Goods carry HSN codes and services carry SAC codes. Tally Prime handles both on a single invoice and applies the respective GST rates without any conflict.
Q2. What if a stock item has no GST rate assigned in the master?
Tally Prime will either show an error or treat the item as non-taxable. Always ensure GST details are filled in the stock item master before invoicing.
Q3. How do I handle a sales return for a multi-rate invoice? Use the Credit Note voucher (Ctrl+F8) in Tally Prime. Reference the original invoice and the system mirrors the same rate-wise tax structure in reverse.
Q4. Does Tally Prime auto-populate HSN codes on the invoice printout?
Yes, as long as the HSN code is entered in the stock item master, it appears on the printed invoice automatically.
Q5. Can I edit the GST amount manually on the invoice?
Tally Prime allows manual override in certain configurations, but it is strongly advisable to let the system calculate automatically to avoid GSTR-1 and GSTR-3B mismatches.
Q6. How do I check if my multi-rate invoice is correctly captured in GSTR-1?
Go to GST Reports under Display More Reports. Open GSTR-1 and check the B2B or B2C section depending on the buyer type. Each rate slab will appear as a separate row.
Q7. Is there a limit on how many different GST rates can appear on one invoice?
No, there is no such limit in Tally Prime. You can have all four major slabs — 5%, 12%, 18%, and 28% — on a single invoice and the software will handle the computation correctly.
Conclusion
Creating a sales invoice with multiple GST rates in Tally Prime is straightforward once your masters are configured correctly. The software does the heavy lifting of rate application, tax segregation, and invoice formatting. Focus on keeping your stock item masters and customer ledgers accurate, and Tally Prime will ensure your invoices are GST-compliant every time.
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