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How to Record GST Transactions in Tally Prime
If you’re working with accounts or learning Tally Prime, one of the most important skills you must master is recording GST transactions.
Since GST is mandatory for most businesses in India, every accountant needs to know how to handle GST invoices, purchases, sales, and tax reporting inside Tally.
The good news? Tally Prime makes GST accounting simple — once you know the correct setup and process.
🛠 Step 1: Enable GST in Tally Prime
Before entering any GST transaction, you must activate GST for your company.
Go to:
Gateway of Tally → F11 (Features) → Statutory & Taxation
Enable:
- ✔ GST – Yes
- ✔ Set/Alter GST Details – Yes
- ✔ Enable Tax Calculation – Yes
Now enter details like:
- GST Number
- State & Jurisdiction
- Invoice Type (B2B/B2C)
Save → Ctrl + A
📦 Step 2: Create GST-Applicable Ledgers
1️⃣ Customer or Supplier Ledger
- Under: Sundry Debtors / Sundry Creditors
- Enable GST → Yes
- Enter GST Registration Type
- Add GSTIN (if applicable)
2️⃣ GST Tax Ledgers
Create separate ledgers for:
- ✔ CGST
- ✔ SGST
- ✔ IGST
Path: Gateway of Tally → Ledger → Create
Under: Duties & Taxes → Type: GST
3️⃣ Sales/Purchase Ledger
- Under: Sales / Purchase Accounts
- Select GST Rate (5%, 12%, 18%, etc.)
- Choose Category: Goods or Services
🧾 Step 3: Record a GST Sale Transaction
Go to: Accounting Vouchers → F8 (Sales)
- Select Customer
- Enter Item Name / Qty / Rate
- GST Auto Calculates
Save → Ctrl + A
🛍 Step 4: Record a GST Purchase Transaction
Go to: Vouchers → F9 (Purchase)
- Select Supplier
- Enter Invoice Number & Item
- GST Calculates Automatically
Save Entry
📊 Step 5: View GST Reports
Path: Display → Statutory Reports → GST
Reports include:
- Tax Summary
- Invoice Summary
- Mismatch Report
- Return Status
⚠️ Common Mistakes to Avoid
- 🚫 Wrong GST Rate
- 🚫 Missing HSN/SAC Code
- 🚫 Not enabling GST for ledgers
- 🚫 Wrong invoice type setup
