In this post you are going to learn in detail step by step about how you can easily create GST Accounting Entries in Tally.
Especially we are going to look at how you can create sales and purchases entries along with stock items in Tally.
In this GST Series so far, you have learned how you can upgrade Tally to the version 6.0 which includes GST functionality and how to enable and set GST details in Tally.
In this post, I am going to explain the entire working of GST regarding Sales and Purchases entries in Tally.
If you are familiar with the previous taxation entries in Tally for VAT or Service Tax, then GST entries for sales and purchases in Tally will be a cup of cake for you. 🙂
It is almost same as if you are passing entries for service tax but instead of service tax, you will be passing entries for GST.
That is the critical difference.
Now, let us start with the main part. Creating Sales and Purchases entries for GST.
But before we can create Sales and Purchases Entries for GST i.e. GST Accounting Entries in Tally, we need to create certain ledgers and alter certain ledgers if you have not already created them.
Before creating GST Accounting Entries in Tally…
As I said, we need to create certain ledgers as well as alter certain ledgers.
We have to create taxation ledgers for recording the GST.
Now, GST includes majorly 3 types.
- CGST – Central Goods and Services Tax
- SGST – State Goods and Services Tax
- IGST – Integrated Goods and Services Tax
There is another type of GST called UTGST – Union Territory GST which I will not be discussing here because it is not much in use.
So, coming back to the GST ledgers, we need to create the following GST ledgers in Tally. They are:
- Output CGST Ledger – when you sell goods or services inside your state
- Output SGST Ledger – when you sell goods or services inside your state
- Output IGST Ledger – when you sell goods or services outside your state
- Input CGST Ledger – when you buy goods or services inside your state
- Input SGST Ledger – when you buy goods or services inside your state
- Input IGST Ledger – when you buy goods or services outside your state
All the ledgers will be under Duties and Taxes as all of them are taxes.
Remember, when you sell goods or services, there will always be Output Tax and when you buy goods or services, there will always be Input Tax.
While creating GST taxation ledgers, you need to take extreme care of one thing and that is rate of tax.
If you have already enabled and set up GST in Tally, you must have set the GST rates in Statutory and Taxation in the Configuration menu.
That rate will be automatically taken up when you create a purchases or sales voucher in Tally.
Therefore, while creating GST ledgers, you need to put the tax rate to zero.
Let me show you how you can create 1 ledger from the above list because the rest of the ledgers have to be created in the same way.
How to create GST Taxation Ledgers in Tally
Creating GST taxation ledgers in Tally is as easy as creating ledgers in Tally. Let’s start.
- From Gateway of Tally, go to Accounts Info.
- Select Ledgers
- Select Create under Single Ledger. Now the real fun starts.
Take a look at the picture above because that is exactly, how you will need to create the Input CGST Ledger in Tally.
- The name will be Input CGST as it is input tax which we pay when we purchase goods or services attracting GST.
- As I said, it will be under Duties and Taxes.
- Now, in Type of Duty/tax option, select GST.
- For Tax type, select Central Tax for now.
- You have to select State Tax for SGST and Integrated Tax for IGST and Cess for Cess.
Tax Type while creating GST Ledger in Tally
- You have to select State Tax for SGST and Integrated Tax for IGST and Cess for Cess.
- The option Inventory Values are affected will be set to No because it has no use for this ledger.
- Percentage of calculation should be set to 0%. It is because Tally takes the percentages from your configuration or the stock items or the classification.
This is crucial to know because if you set the percentage here you will not get the amount automatically calculated while creating an entry which includes GST. - Rounding method that I have selected is Normal Rounding. However, you can select the method as per your choice.
- Rounding limit is set to zero. Again, it is my choice. You can select a different number.
- Now, just press Enter till you save the ledger.
- Congo! You have created a GST ledger, specifically an Input CGST ledger in Tally.
You can easily create all the GST Ledgers as in the list above by following this method.
Just change the name, the Tax Type and you are done with creating all the ledgers. Repeat the same method and in no time you will have all the six ledgers required for passing the GST accounting entries in Tally.
Now that you have created all the GST tax ledgers, we need to make sure that certain other ledgers are configured for GST applicability otherwise they won’t work as required.
Those ledgers are important for passing GST Accounting Entries in Tally. They are:
- Sales and Purchases Ledger
- Stock Items Ledger
- Sundry Debtor and Sundry Creditors Ledger
We need to configure these ledgers so as to make them GST enabled in Tally. Here is how you can do it.
Follow me. 🙂
How to Set GST Details in Sales Ledgers in Tally
Let us start with altering Sales Ledger to enable it for GST. You can follow the steps even if you want to create a new GST Sales Ledger.
Please note that if you do not alter the Sales Ledger and do not enable GST in that ledger, GST will not be automatically calculated and will not get displayed while creating a Sales Voucher which includes GST.
I have already created a Sales Ledger in Tally named Domestic Sales. I will alter it right now in front of you.
Have a look at the Statutory Information section on the left hand side. That is what we have to alter to enable the sales ledger for GST.
- First Option – Is GST Applicable? should be set to Applicable.
- Second Option is Set/alter GST Details. Press Y and press Enter. You will see a GST Details menu which is exactly the same as was at the time we set the GST details for Tally in the previous post.
- Here is how it looks like:
GST Rate Details in Sales Ledger in Tally - Enter the Description and the HSN Code which you can get from your GST registration.
- Nature of Transaction is important here. There are different natures of transaction. Have a look at in the picture below.
Natures of Transaction in GST in Tally - When you select Nature of Transaction, you will see the Natures of Transaction on the right hand side of the screen as in the picture above.
- You will have to select the nature of transaction here according to your business.
- For sales inside your state, select Sales Taxable, Exempt or Nil Rated.
- For sales outside your state, select Interstate Sales Taxable, Exempt or Nil Rated.
- Similarly select a particular transaction type as per your business.
- Finally, set the tax rates under the option Tax Type as show in the picture above and press Enter to save the details.
- Here is how it looks like:
- Now comes another important option i.e. Type of Supply. There can be either Goods or Services in your business. Select one of the options. I have selected Goods.
- Next option is for Service Tax applicability. You can either put it to Undefined or Not Applicable. I have put it Undefined as it was default selection.
- Now just press Enter few times and save the ledger with all the details that you have entered.
We have successfully created a Sales Ledger in Tally and have enabled GST details for the ledger too.
It is good to name your GST Sales or Purchase Ledger according to the GST percentage rates.
For example, for 28% GST on sales, the name of the ledger can be GST Sales 28%. This will differentiate all the sales according to the rates in Profit and Loss Account in Tally and it will be easy for you to see sales in different rates of GST.
This will help us pass GST accounting entries in Tally, be it sales or purchases with very much ease.
You have to create a Purchase Ledger. And guess what? You have to follow the exact same method which I have described above.
The only difference will be that it will be a Purchase Ledger instead of Sales Ledger.
So, go ahead and create a Purchase Ledger and simply follow the steps above. You will in no time have successfully created a GST Purchase Ledger in Tally.
From now on I am assuming that you have created the required GST Tax Ledgers and enabled GST in Purchase and Sales ledgers in Tally.
These ledgers are required for passing GST Accounting Entries in Tally so create or alter them with care for perfect entry at the end.
Now, comes Stock Items.
How to create GST Stock Items in Tally
Anything you sell or purchase can be recorded in Tally in stock items if you have created them.
Basically a stock item is a unit through which you can record the number of items sold or purchased. For example, if you sell a mobile, then stock item here is mobile.
We have to alter the stock items to enable them for GST so we can pass the entry for GST Sales or Purchases.
Again, creating a stock item in Tally is almost same as altering it.
I will be explaining you here, how you can alter it or enable GST in your stock item in Tally.
Here you go! Let’s start.
- From Gateway of Tally, go to Inventory Info.
- Select Stock Items
- Select Alter under Single Stock Item. (or you can select create for creating a new stock item)
- I have already created a stock item called Mobile under a group called Mobiles.
- What you have to look here is the GST details under Statutory Information as shown in the picture below.
- If you notice, the statutory information menu is almost same as was while we were creating a sales ledger.
- Now, select Applicable against GST Applicable option.
- Next option is Set/alter GST Details. Press Y and press Enter.
- You will see the same GST Tax Rate Details menu which you saw when we were creating Sales Ledger and filling up the GST details in that ledger.
- But, there is one single difference and that is Calculation type.
- For this post, select On Value because On Item Rate is an advanced option and I want to explain GST in as simple manner as possible.
- Set the rates, the same way you had set while creating the Sales Ledger above and press Enter to save the details.
- Now, you will come back in the outer menu. Select Type of Supply as Goods or Services as per your requirement.
- Press Enter till you save the ledger.
- Congratulations! You have just created or altered a GST Stock Item in Tally.
- Similarly, you can create as many as GST Stock Items in Tally as you want.
Now, let us go and alter the Sundry Debtor and a Sundry Creditor Ledger to make them GST supported in Tally.
This is necessary to pass GST Accounting Entries in Tally at the end.
How to create GST Sundry Debtor/Sundry Creditor Ledger in Tally
I already have a Sundry Debtor created in my Tally.
I will alter it here and will show you how to add the GST details in the Sundry Debtor ledger.
Even if you are creating Sundry Debtor Ledger for the first time, the procedure is simple and almost the same.
Here you go. Let’s start.
- From Gateway of Tally, go to Accounts Info.
- Select Ledgers from the menu.
- Select Alter under Single Ledger or Create under Single Ledger if you want to create a new Sales Ledger.
- There is a Sundry Debtor named Amit which I have created. I will be altering it.
- In the picture above, go to Set/Alter GST Details under the Tax Registration Details option on the bottom right.
- Press Y and press Enter.
- Here, select the Registration type as per the details from your debtor. In most cases it will be Regular.
- Enter the GSTIN or UIN
- Select the Party Type. There will be 3 options which are
- Not Applicable – Most cases
- Deemed Export and
- SEZ (Special Economic Zone)
- Last option is for E-Commerce Operator. E-commerce operators are sites like Amazon or Flipkart who allow other people to sell their goods on their sites. If you are selling your own goods from your site and no one else is selling goods except you on your own site than you are not an e-commerce operator.
- Save the details and press Enter until you save the whole ledger.
- Congratulations, you have successfully created or altered a GST Sundry Debtor Ledger.
The best thing is, you can similarly create or alter the GST Purchases Ledger in Tally. I have already created GST Sundry Creditor Ledgers in my Tally.
But, if you face any difficulty in creating GST Sundry Creditor Ledger, you can always comment below and I’ll be happy to help.
Now, let us quickly recap what we have done till now.
By the way, if you have followed this post till now and you have simultaneously created or altered all the ledgers in Tally, then hats off to you.
Only a few handful of people are able to do this.
Coming back to the recap, here is what we have completed till now.
- Created/Altered GST Taxation Ledgers in Tally
- Entered GST Details in Sales as well as Purchase Ledgers in Tally
- Created/Altered Stock Items in Tally for GST in Tally
- Created/Altered GST Sundry Debtors and Sundry Creditors Ledgers in Tally.
Now it is the time to create an actual sales and a purchase entry in Tally which will include GST.
This was what I was talking about till now. The real time to create GST Accounting Entries in Tally.
Creating GST Accounting Entries in Tally
For this post, we will be creating a sales entry as well as a purchases entry which will include GST in Tally.
I am assuming that you have created all the ledgers above and are ready to pass sales and purchases entry in Tally.
In short, everything is set and we are ready to go to pass the sales entry along with the GST in Tally or one of the GST accounting entries in Tally.
Creating GST Sales Entry in Tally
- From Gateway of Tally, go to Accounting Vouchers under Transactions.
- Press F8 to select Sales Voucher.
- In Party A/c name, select the Sundry Debtor. In my case, I am selecting Amit.
- In Sales Ledger, select the GST Sales Ledger that we have created above. Here it is Domestic Sales.
- Now, you need to select a Stock Item you have created. Here, it is Mobile.
- Enter the quantity and rate for the Stock Item which here is 1 Mobile for ₹20,000.
- Press Enter 2 times after entering the Amount and you have to select the GST Tax Ledgers.
- Select Output CGST as well as Output SGST. You will notice that the amount of GST will be calculated automatically.
- Enter the Narration and press Enter to save the voucher.
- Congratulations! You have successfully created a GST Sales Entry in Tally. Have a look at the picture below to see what I am talking about.
You can click on the image above to see it clearly.
Now, similarly, we will create a GST Purchases Voucher in Tally. The procedure is almost the same and the only difference is that it is a Purchase Voucher.
Basically both Purchases and Sales vouchers are a type of accounting entries and therefore you can also call them GST Accounting Entries in Tally.
Creating GST Purchases Entry in Tally
- From Gateway of Tally, go to Accounting Vouchers under Transactions.
- Press F9 to select Purchases Voucher.
- Enter the Supplier Invoice no, enter the Date and press Enter.
- Select the Sundry Creditor with GST Details which in our case is Rohan.
- Select a Purchase Ledger as we created/altered above with GST Details which in our case is Domestic Purchases.
- Select a Stock Item from the List of Stock Items. In our case it is Mobile.
- Enter the Quantity and Rate. The Amount column then will automatically get filled in.
- Press Enter exactly 2 times when in Amount column.
- Select Input CGST and Input SGST and the GST amount will be automatically calculated in Tally.
- Enter the Narration and save the voucher.
- Congratulations! You have created a GST Purchases Entry in Tally.
You have also created second of the most important GST accounting entries in Tally which is GST Purchases Entry in Tally.
GST Accounting Entries in Tally ERP 9 – Video
At the End…
A huge congratulations to you because you have successfully, with flying colors learned how you can create GST Purchase Vouchers or Entries in Tally as well as GST Sales Vouchers or Entries in Tally.
In short, you have learned how to create GST Accounting Entries in Tally.
If you remember, I asked you to create IGST ledgers also.
Well, they are used whenever you are selling outside the state or purchasing from the other state.
In Tally, just select IGST ledgers whenever you want to pass entry in Tally which involves sales or purchase outside the state instead of CGST and SGST ledgers.
That’s it.
I know this post is long, but I want you to fully know the working of GST in Tally, especially in Sales and Purchases.
I am sure, you will have questions and I am ready to answer them in the comments below.
Other than that, I am sure you have learnt a lot from this post so please share this post for everybody to learn GST in Tally for free.
Hi Rishit ,
In jewellery business how to enter Making charges and KDM wastage in tally. For jewellery it is 3% GST for Making charges 5% GST. Example: Purchase cost of 1gms is 2600+100(making charges) and sales price 1gm is 2700+150(making charges). Kindly advise me how to do this entry.Thank You.
Hi, Magesh!
This kind of entries contain 2 different types of GST rates in the same bill.
I am preparing a course for GST in Tally and will release it soon.
It will have the explanation to your problem.
hello sir i am param . i am install the tally 6.0 education mode version but sale bill which is missing quantity pls sir providing setting
thk
Please select item invoice from the option.
Hello
I want to know that if I don’t want to maintain stock in tally then …it is ok or not?
Hi, Chaitali!
It is okay if you don’t want to maintain stock in Tally.
Dear sir,
This is very useful. Thank you.
Thank you Pravin! 🙂
explain igst for services in tally.. sellin service to othr States
Hi, Shebu!
It is same as I have explained in the post.
Just select IGST instead of CGST or SGST.
Also, select the state of the debtor accordingly while creating a ledger for it in Tally.
hii, shebu
IGST- refer to the inter state sales which is used
when invoice created in tally , then IGST applicable within different slabs.
We are selling our product through e-commerce operator, while entering sundry debtors under GST details we will show e-commerce and later on it will ask GST Number. My question is whether we have to enter e-commerce GST Number or party to which we are selling their GST Number. Most of the parties are not having GST Number. Please clarify the same.
How to enter in GSTR1 return also.
Hi, Gayathri!
You have to enter the number of the seller to whom you are selling.
For example, if you are selling anything through Amazon i.e. e-Commerce operator, to a certain person in India, you have to write the name of the person to which you are selling.
Most of the persons purchasing online will not have a GST number and therefore, you have to select it as a Consumer or GST Not Applicable in Tally.
What is different between IGST,CGST,SGST. PLZZ can u explain m
Hi, Jabar Singh!
CGST and SGST are applicable when you sell in your own state.
IGST is applicable when you sell outside your state.
As per your tutorial, we need to create 8 (In & Out for SGST, CGST, IGST and CESS) ledgers for each tax rate? For example, for 3%, 5%, etc. Isn’t there any simpler or other way? Like, we can give % at the time of creating invoice?
Hi, Dharmen!
There is one simpler method.
Put the % to 0 in the taxation ledgers and instead set the percentages in the stock items and sales ledgers.
For that, you need to set No for the option of using common ledgers.
You can find that option when you go to Configure while in the Sales or Purchase Voucher.
This way you only need to create different sales and purchases ledgers for each tax rate which makes sense.
Hi Rishit ,
I want to know all GST rates. So can you explain me.
Hi, Roushan!
I will starting a whole new GST Series of Posts and will explain in them.
Hi Rishit ,
If i install new tally series 6.1 than my backup will erase or not? please tell me.
Not it will not be erased.
We are purchasing product , . My question is how to alter purchase ledger and how is the tax rate ?? and also incase of sales
Hi, Muhsin!
If you want to alter a purchase ledger, you can do it by pressing ALA from Gateway of Tally consecutively.
Setting up tax rates for GST – here is the link – https://www.tallyschool.com/set-gst-details-in-tally/
Hi Ritesh, plz explain that how can one enter multiple tex items in single sale or purchase ledger.
Hi, Harsh!
I will be shortly publishing the post about that.
Thanks for asking!
We didn’t maintain the stock, simply book the sale. So can i use the % in Sales ledger as well as output ledger?.
Yes, Sourabh!
Definitely you can use % in Sales Ledger as well as output ledger without inventory.
Your invoices will be accounting invoices and not item invoices.
Hi Rishit,
How to pass entries for purchase bill with free quantity under gst. Kindly note GST is charged on Free quantity.
Well, in that case, you have to enter the tax amount manually every time because tax amount is calculated on the basis of billed amount.
Enter the amount of free goods as 0 and enter the tax amount in the GST tax ledgers.
How to apply tax only on sub total after allowing discount.
Ex : Bill amount : 20000, Disc: 5000, Final Amount : 20000-5000=15000. I want to charge gst only on 15000/- but tally calculates on 20000.
Hi, Chirag!
Create a ledger called Discount under Direct Expenses.
While creating the ledger, make sure you select Include in assessable value calculation for GST and set it on Value.
Now, while passing entry select this ledger before GST ledgers and enter the amount in negative like -5000 for Rs.5000 discount.
And, you have it.
Its very useful tutorial for accounts people.
please can send any cv for 3 years of experience accounts with inventory field.
Hi, Siva! Thank you for your appreciation!
I am getting problem regarding purchase in P/L a/c. actually it showing purchase + gst amount. but in p/l a/c it should be only purchase value excluding gst. Please solve my issue.
Thanks in advance.
Hi, Deepak!
If you have followed the steps that I have directed, it should not happen. Although, here are some points you can check for solving your issue.
Firstly, make sure the GST Taxation Ledgers are created under Duties & Taxation.
Secondly, check if you are passing the entries correctly and using the GST Taxation Ledgers after the total of the amount of purchases as I have shown in the post.
Check your Balance Sheet if it shows the GST amount because if it shows in P/L account and the Balance Sheet, it will be double effect.
Please reply to this comment if you have solved the issue or if the problem is still there are checking the above steps.
Actually, I have one CGST, SGST & IGST ledger under Duties & Taxes. Sales entry are ok, but in case of purchase, GST calculation is correct in purchase entry. But it includes GST value in purchase in P/L a/c but not in case of sale.
In B/S under duties & taxes, GST on sales shows but GST on purchase don’t as it is already showing in P/L a/c.
I have created one purchase ledger & sales ledger for both tax code (5% & 18%), it automatically calculates as defined in stock.
I have also tried your given steps but in case of purchase i have the same problem.
as i can’t do much change in tally as it is my company data.
Hi, Deepak!
You need to set different GST Taxation ledgers for sales and purchases.
For sales, you have to create Input CGST, Input SGST and Input IGST ledgers under Duties and Taxes.
Similarly, for purchases, you need to create Output CGST, Output SGST and Output IGST ledgers under Duties and Taxes.
Thanks for the reply!!!
but i have solved myself by altering the group duties & taxes option “Method to allocate when used in purchase invoice”. I have set to “Not Applicable”, previously it was “on Value”. and now everything working fine.
Purchase A/c in P/L showing gst exclusive purchase & in purchase register it showing inclusive GST. also in B/S gst on purchase is showing under “Duties & Taxes”.
Hi, Deepak!
I am happy that your question got solved. Keep up the work and keep learning. 🙂
I want to add a lot of items and it is not possible for me to do it individually for 1000s of items! Is there any other method of creating stock items so that all the details ( Name, GST rates, HSN, etc) are displayed at once under my inventory info! Also, it’s not possible for my business to keep a proper inventory(Quantity) Is it mandatory to provide exact inventory in Tally? Thank you.
P.S. Great work! You’re helping a lot of people get through GST with ease!
Hi, Anuj!
It is currently not possible to add thousands of items at once with all the details like you have in one screen.
You have to manually enter each of them while creating the Stock Items.
You can do one thing.You can create a GST Classification and create different classifications of rates, HSN and all the details which you can quickly use while creating Stock Items.
That you will not have to enter the details each and every time.
You can create it under Accounts Info. > Statutory Info. > GST Classifications.
our company have purchased the laptop through amazon not mentioning our GST no. how the entries to be passed in tally.
The entries will be passed in a similar way but as you have not mentioned your GST number, you might not be able to take the credit for that.
Hi Rishit,
I am maintaining seperate software for inventory and for accounts using tally ERP 9, please advise, can I enter GST entries in tally and can file GST Returns through tally ERP 9. please explain in detailed. thanks
Hi, Pari!
You cannot file the GST returns directly through Tally. Tally will give you a file and you need to use the GST Offline utility for uploading the return.
You can definitely create GST Entries in Tally. In fact, I have created a full GST Course.
Sir If A and B are the partners and a has given his land on rent what will be the entry in tally
Hi, Suraj!
The entry in Tally for land given on rent by A to the business will be:
Land A/c Dr.
To Capital A/c
Hi,Mr.Rishit how i m be an complete accountant ……….
Hi, K.Das!
Start learning accounting. Start learning Tally.
Make sure you know all the basic concepts of accounting.
Slowly and steadily you will be an accountant.
sir gst all gmail me bhej do
Ji apko milna chalu ho jayega! 🙂
Can input igst of a particular month say july17 is adjust from sep17 cgst output. Please reply
Hi, Deepak!
You have pass an adjustment entry for GST in Tally. Then it will get adjusted.
You can view it by month too as you have said.
Hi Rishit,
This article helped me a lot.
Thank you.
You welcome, Swati! 🙂
First of all i want to thank you Rishit Sir for such a lively post…while going thru d post i felt as if you were right in front of me & explaining all d stuff live…well i wud like to share dat i am a new user … just took licensed version of tally…now coming to my query…when i passed opening entries as of 01.04.2017…my balance sheet is ok wid al d items except opening stock….
i placed 31.03.2017’s closing stock as 01.04.2017’s opening stock…..my balance sheet is not tallying…n d difference amt is same as opening stock amt… a message is showing in d balance sheet as “difference in opening balances”…how to tally dis difference… kindly suggest solution to this…Thnx again…:)
Hi Priti!
Thank you so much for your good words. It really feels good to hear them.
Coming to your question, you have enter opening stock as the opening balance of the ledger when you create the ledger. If you have already created a ledger for closing stock, alter it and enter the opening balance which is at the bottom of the ledger creation or alteration screen.
Your method is unfortunately incorrect.
As suggested i have deleted the opening stock ledger & altered the closing stock ledger by writing the difference amount in opening balance shown at the bottom of the screen. But still the same difference is visible in the balance sheet.
Hi, Priti!
I didn’t ask you to delete the opening stock ledger.
Okay, do one thing.
Create the stock items which is your stock and add the opening balance in there.
Now, see what happens. Most likely it will be stored.
this was a bad one.
Hi, XYZ!
Can you tell me what is bad so I can rectify it? Otherwise the rest of the people who commented cannot be wrong. 😉
Dear sir,
Please tell me
1. If i use only Accounting invoice for purchase entries in Tally, how can i submit GSTR2 HSN summary
2. If i just accept the HSN Summary uploaded by my suppliers in GSTR1 , wont this let them to make malpractices
3. I dont want to maintain stock for purchase items. But to avoid any malpractice from my supplier, i am making Purchase entries in Tally with Stock items.
In this case how can i offset the stocks that stands in stock summary. (Because my purchase items are processed and sold. So the purchase items and sale items are different. We dont want to maintain delivery and procurement of items from my processor(WEAVER). ) Can i use any Journal entry to do that ?
Hi, Arunkumar!
1. If you are using only accounting invoice, you have set the GST details in the ledger which you are using for sale or purchase. For example, you purchased clothes, then you have set the ledger for clothes for GST details and in there you can enter the HSN code.
Then you can go to Display > Statutory Reports > GST > GSTR2 and you will find the information about this entry.
2. Yes, it can but HSN summary doesn’t change everyday. Therefore once you get your products, you can check it.
3. Just leave as it is. You don’t need to do anything if it is not bothering you. In any case, you were not going to maintain the stock summary.
we want to know if we are invoice one part which is made from many many small parts(parts are entered in tally) then how can we do i. e all parts are reduce from tally.
Hi, Varsha!
As far as I am understanding your question, you want to know about many small different parts together put in Tally and you are selling one single part made from it.
For that you need to create manufacturing entries in Tally. First you need to pass a Stock Journal entry in Tally for combining all the products and making them into one product.
Then, you can sell that single product.
how i download tally shortcuts from your website
Hi, Niraj!
Here is the link to download Tally Shortcuts from here – https://www.tallyschool.com/tally-shortcut-keys/
While passing sales entry there is a message showing i.e. Negative stock (along with the amount entered in the quantity column). what to do?
Hi, Priti!
This is one of the most common problems.
This happens because you try to create a sales entry without any quantity of stock and hence negative stock.
I suggest you create a purchase entry for the stock first and then try to create a sales entry.
The problem will be solved.
Dear Sir
how can booking purchase entry for item discount receive.
example for i have purchase Thums up 10 bottle 1000 Rs and also discount kinley bottle 200 Rs how can pass entry under Gst regime
Hi, Bhavnesh!
Create a ledger for discount ledger under direct expenses.
Now, when you create a purchase entry, select the discount ledger after the stock items and enter the negative balance.
That’s it. Let me know if it works for you.
Now Domestic Sales other sales A/c pickup in all voucher creation-(Accounting Invoice,Item Invoice,service Invoice) Previously when i created Sales Ledger i choose Type of supply Services instead of Goods Now i Understood where i made mistake in Ledger. Thanking You
You welcome Sowrirajan!
I am more than happy that I am able to solve your doubts.
how can i record retail sales in gst tally?
Hi, Nasir!
I will be releasing a DVD as well videos and posts on GST soon which will include retail sales of GST Tally.
sales voucher or purchase voucher me quantity or rate per ko enable kaise kare sir , mere tally erp 9 gst enabled hai but jab me purchase ya sale me stock enter kar rha toh direct amount par jaa rha hai quantity or rate per nhi aa rha hai, kya kare ???/
Hi, Prashant!
Iske liye apko Units of Measure enable karna hoga.
Uske liye aap ye post ko padh lijiye to apko pata chal jayega.
https://www.tallyschool.com/stock-items-stock-groups-units-of-measure-in-tally
is there any diffrence between sale to consumer and sale to an unregistered dealer ?
Yes, Nasir!
You have to specify each of them differently in the GST returns.
In terms of money, nothing much of a difference.
in gstr-1 these transactions comes under which heads(b2b,b2c(small)…etc)?
Hi, Nasir!
That depends upon whom you are selling.
If you are selling to dealer, it will come under B2B and if to the end consumer, it will come under B2C.
For more detailed answer, you need to check the GST Law.
Dear Friend, I just want to ask you that how we create a expense head if we purchase that item from local (from same state) & outsider ( from other state) under GST?
Hi, Abhishek!
When you create a ledger for expense, say Packing Charges under Indirect Expenses, there are options for GST while creating the ledger.
You can put the details in there and while doing the entry, calculate GST as I have said in this post.
your notes are good. But I have only a free version for studying tally.I follow your steps .The problem is I can’t get the amount of GST will be calculated automatically.why it happens?
Hi, Saumya!
This is because you might have done one of things incorrect.
They can be:
1. Incorrect creation of sales ledger
2. Incorrect creation of GST Taxation Ledgers
3. Using IGST in intra-state transactions or using CGST and SGST in inter-state transactions
4. Stock Items not properly defined for GST
Please check the above ones and still if your problem is not solved, email me and I will try to solve it.
Hi Ritish ji
my self p.k.srivastava my problem is how to make goods entry as purchase and sales also under GST on total bill amount . right the real concept using tally erp.
thanking you.
Hi, Pradeep!
This post is all about purchases and sales entry under GST in Tally.
Aapko koi specific problem ha to bataiye, me madad karunga! 🙂
Hi,
Your information is very good and useful for us.Now i have one problem,please let me the know the solution.In our purchase bill,the GST is calculated on the value after discount,means they have done sum of items rate and form this amount discount amount is minus and the GST is calculated on that amount.But how can i take this entry in tally?
Hi, Sangita!
You have to enable the option of using separate discount column in invoices.
For that, go to F11 – Features.Then go to Inventory Features.
Now, under Invoicing, you will see the last option of using separate discount column in invoices.
After enabling the option, you will see a column of discount when you create a Sales or Purchase Invoice in Tally even with GST.
Use that and you will get discounted value.
Nice explanation in simple way to understand
Thank you so much Satyanarayana! 🙂
After creating self. Invoice for labour charge under RCM in gst the cost is not allocated to cost of item. Pl tell me how to do this in tally.
2. As per GST rule 52 I have to issue a payment voucher to payment receiver such as labour under RCM with full details like in purchase voucher. This makes the cost entered through self invoice and while making payment voucher cost name such as labour charge.
Please guide me through this
Hi, Ashok!
The details that you are asking, I have explained them in the GST DVD Course which I’ll be releasing soon in one or two days.
Please teach us regarding to Final Accounts in Tally and My second query is how to Print Capital AC, P&L Ac and Balance Sheet on single page like CA do.
Hi, Vishakha!
Final Accounts in Tally are automatically prepared and you just have to create accounting entries. Final accounts means Profit and Loss account – this includes Trading Account and Balance Sheet.
All of them are accessible from Gateway of Tally.
Several Software print Capital A/c, P/L and Balance Sheet on one page. In Tally you cannot do that.
But what you can do is, export all of them to Excel and simply copy it in one sheet.
Hi Rishit,
Awesome…!!!!
The post really helped me in understanding the concept.
Regards,
Hira Goyal
Thanl you so much Hiralalji!
I am happy that you understood the concept. 🙂
Nice explanation. Thank you so much
You welcome, Siddu!
what a simple procedure u describe ………wow. ..
Hi, Sonia!
Thank you for your appreciation. 🙂
Hi rishit,
Thank you for making me understandable about gst entry in tally.
You welcome Umesh!
I appreciate your good words.
We are sale product how to alter particular item unit changes and i have try to alter units but no success how to changes k.g to nos
Hi, Nitya!
You cannot change the unit of stock item once you have created entries. You have to delete all the entries to change the unit from kg to nos.
THANK YOU RISHIT.
You welcome, Nitya! 🙂
hello sir, thank you, Its very usefull
Thank you Monisha, for your appreciation!
Hi Rishit,
how to entry reverse charges in tally and give an example.
Hi, Nitya!
I have explained that in Full Tally Course with GST and I will re-release it soon.
Hai i’m e commerce seller. i receive service bill from e commerce operator monthly. i enter this in purchase voucher and create commission and service fee ledger under purchase account. but i have doubt about it please clarify this. and also clarify how accounting in tally for e commerce.
Hi, Umar!
Can you tell me the details of ecommerce service bill? That way, I can clearly tell what entries are to be done.
Each Month E-commerce Seller Receives Tax Invoice From E-commerce operator. For Commission Fee And Courier Fee Plus Service Tax. I Need To Claim That Input Service Tax Credit. So I Enter This Transaction In Purchase Ledger. This Is Right? And Another Doubt Is Commission Fee And Courier Fee Ledgers Comes Under Indirect Expense?
Hi, Umar!
Yes, it can be taken as a Purchase Transaction of services and it would be an Accounting Invoice. That is right.
I recommend you put them under Direct Expenses because these expenses are directly related to your business.
i love u
What?
I love me too!
Thanks for the compliment!
In gst rate set up it is coming as taxability not applicable. Wat should i do??
Hi, Rishi!
This can be because of several reasons.
But the most probable reason I think is that you might have not enabled the GST details in Statutory Details.
Please enable it.
If that is not the problem, please reply what else the problem.
Dear rishit sir
After giving me congratulations for passing the test ,I am awaiting yourself for attending gst classes.please let us know at the earliest.
Thanking you
Yours sincerely
Pradeep kumar
Hi, Pradeep!
I will let you know as soon as it is complete.
Hi can you tell me gstr-1
Hi, Ankit!
Yes, it is automatically created when you pass the necessary sales and purchase entries.
Hi Rishit
i am Narendra and I have problem in understanding gst calculation on commission based business. for example i sell a service like stay in resort to the customer for Rs.1000/- per day and i get Rs.1000/- but for that i pay to the vendor Rs.720/- and i receive Rs.280/- as commission for this business. on which amount I need to calculate Output GST either on Rs.1000/- or Rs.280/- ? Please suggest me.
Hi, Narendra!
You need to calculate GST on the commission amount because that is what you are charging.
The vendor will calculate on ₹720 because that is what he is charging from the customer.
HOW TO PASS ENTRIES OF SALES PAYMENTS OF SERVICE IN TALLY ERP9
Hi, Niki!
You have to select Accounting Invoice instead of Item Invoice in Sales Voucher in Tally for passing GST Accounting Entries for services.
key points for auto calculation of GST amount in tally
Hi, Hemant!
The above the were the keypoints for automatic calculation of GST in Tally.
Most important point is you select proper GST rates in every ledger in Tally.
Nice
Thank you Akhiruzzaman!
hi,
how to calculate per purchase invoice profit/loss?
Hi, Muhammad!
You can look at the Profit and Loss Account for knowing the profit or loss.
It gets automatically calculated in Tally.
Hi Rishit,while creating sales and purchase ledger its fine. But when i created sales entry its not considering unit & quantity help me please and i have more doubts do needful
Hi, Prathyusha!
You need to create Units of Measure for this while creating Stock Items in Tally.
Because of this you are not able to enter the quantity and rate in Tally.
before adding stock item should we 1st create stock group to enable quantity and unit while passing entry
No, you need to create Units of Measure for this as I said in another comment.
what to do if supplier not issue credit note for returned goods? they don’t know about credit note. they used to reduce bill value in next purchase. im confused about this accounting maintenance in tally. hope you can help me with this. thank you..
Hi, Umar!
If the supplier does not issue you a credit note than what you have to do is cancel the Purchase Entry for which no credit note is issued.
Do, the next entry at the reduced amount of the next purchase.
but supplier and me both filed gst return of first bill. i have also increase my tax liability for taking debit note and gst return filed this month. what can i do ?
Then you have to tell the supplier to issue a credit note. There is no other choice.
thanks for the explanation sir……………… 🙂
You welcome Shabnam! 🙂
How can I get auto popup of CGST/SGST/IGST after entering item wise entry in Sales entry without entering the CGST/SGST/IGST after completion of items in Sales
Hi, Koeswara Rao!
You can do it in Tally.
Go to Accounting Info from Gateway of Tally and then go to Voucher Types.
Select Alter and select Sales from the list of vouchers.
Now, come to the Name of Class option and give a name you like and press Enter.
You will see a screen with different options. Come to the last option Additional Accounting Entries (e.g. taxes and other charges) to be added in Invoice.
Select CGST and SGST. Repeat this process and create a new class for IGST.
Now, when you select Sales Voucher, Tally will ask you for class selection. Select the class according to your transaction i.e. interstate or intra state transaction and CGST, SGST and IGST ledgers will show up automatically.
Dear sir,
It is possible to work gst in tally.erp9 releases 1. Can we pass entries in vat tally for gst work. If it us possible so how…..??
Hi, Arun!
You can pass the entries related VAT in the latest version of Tally along with GST.
I can tell you the process if let me know the kind of entries you want to pass.
I liked the way you explain,In a very simple and accurate way, you tell about the GST and the tally.
thank you
Thank you so much Lalit for your good words!
Hi Rishit,
After enable and alter GST. Automatically output CGST is not calculated in sales voucher 🙁
Hi, Prathyusha!
It can be if you are putting CGST and SGST in inter state sales or IGST in same state sales.
Please check that and if it right, please email me the screen shots so I can help you better.
RESPECTED SIR HELP ME REGARDING HOW TO PASS GST ENTERIES IN TALLY SIR
Hi, Satish!
This post has all the information regarding passing GST entries in Tally.
What do you want to know specific? Can you please tell me that so that I can help you?
Hi sir, i import machine from abroad, so how can i put entries with DUTY and GST.. gst is okay but what about duty entry??
Hi, Recky!
The same way you put the GST ledger, you have to create a ledger for Duty under Duties & Taxes and then add it while doing the entry.
Hi, Recky!
The samwe way you put the GST ledger, you have to create a ledger for Duty under Duties & Taxes and then add it while doing the entry.
will you please tell me
how to entry milling store in tally
Hi, Mahesh!
Can you please describe the exact entry so that I can help you better.
Sir,
One person running functional hall.
Rent from customer functional hall 25000.+2000 gst collected
Electricity ,parking ect for 25000. +2000 gst collected . Gst accounting entries for tally.
Hi, Sundaraiah!
Here are the entries for your question.
Bank A/c or Cash A/c Dr 25,000
GST A/c Dr 2,000
To Income from Rent A/c 27,000
Same entry for electricity, parking etc.
Dear Sir,
i have passed a sale entry and i have entered all the details of a company but when i m going to print a sale invoice but my company complete details are not shown.
Hi, Ranjan!
When you print the Sales Invoice in Tally, there are certain printing options present in the bottom right hand corner of Tally.
At the place, there is an option called Configure.
Go in that option and check what details you need to print – in our case you need to print complete company details.
Again – press F12 and you will se Advanced Sales Configuration options in which you can further customize the details that you want to print on your sales invoice.
This will solve your problem.
Pls read &verify your statement under the heading
“Before creating GST Accounting Entries in Tally…”
(about making GST ledgers, you said:)
“All the ledgers will be under Duties and Taxes as all of them are taxes”.
following are the ledgers.
(for selling: )
1.Output CGST,
2.Output SGST,
3.Output IGST,
(for purchasing)
4.Input CGST
5.Input SGST
6.Input IGST
Input taxes are under Duties and taxes because it is a Liability. we(the retailers) have to pay in order to get items from the supplier.
BUT
When we sell, we get that amount from the Customer.
It is our money. that money is our Asset NOT Liability! .
So we have to Put OUTPUT TAX under Current Asset NOT under Duties and Taxes.
What do you think?
SHIHAB. H
Hi, Shihab!
Actually, both the Input and Output GST will be under Duties & Taxes.
The reason is because when you purchase something from someone, you pay bill amount + GST and that is your asset and it will reflect on the debit side of the Duties & Taxes ledger, hence the asset.
When you sell something, you take bill amount + GST. It is not your asset because you have taken the money from the customer and it is your liability to the government.
Is online accounting possible in Tally? If yes, how?
Hi, Joshy!
I am sorry but online accounting is not possible in Tally but you can connect online via Tally in your computer and do the data entry.
Also, you can connect your mobile with your Tally and can see basic information on your mobile.
How to create stock item….it is not shown above …..
just that u hve created stock “mobile” under mobile…so explain it
Hi, Richa!
Here is the process of creating a stock items in tally – https://www.tallyschool.com/stock-items-stock-groups-units-of-measure-in-tally/
hello sir i am param . i am install the tally 6.0 education mode version but sale bill which is missing quantity pls sir providing setting
thk
Hi, Param!
You need to select item invoice in tally.
Then you will see missing quantity.
I have applied gst rates in inputcgst But when I do a payment voucher and select inputcgst , i have to enter Rate why does rate automatically enters?
Hi, Hemil!
Input CGST and GST rates work automatically only in purchase and sales and related vouchers.
It does not work in payment voucher.
When I apply gst rates in sales account and save it then when we again alter it , it shows no in set/alter gst details,Show me the right way
Hi, Hemil!
It will show you NO in set/alter GST details after you save it.
It is because when you save it for the first time, it will be for setting GST details.
Next time, when it shows No, it will be for altering GST details. So it will show NO, unless you want to alter it.
A company gets a bill in the name of the company, but Bill gives it from another account. So how to enter the entry in tally
Hi, Rajesh!
The entry will be same as if you are passing for that company.
Also, if you can please explain a little bit more about the entry, I can help you.
Where I need a guide is, taking cash from Naira Cash Account, changing it to USD and posting or lodging it into a USD Bank Account. How does the USD Bank Account accept the posting from Cash Account(Cr) to USD Bank Account (Dr)?
Hi, Stephen!
For that you need to enable the option of multi-currency in tally.
After that whenever you pass an entry which involves different currency, just use the symbol before amount in tally.
For example, you want to pass a contra entry as per your requirement – in the amount column in contra voucher – enter the symbol for $ and tally will give you the options for conversions.
HI, RISHIT
1.How to pass TDS entries under GST ?
Hi, Sunil!
Go to this link for learning TDS entries under GST – https://www.tallyschool.com/tds-entry-in-tally/
SIR SOME OF PURCHASES ARE SHOWN WITH GST IN PUCHASE A.C AND SOME ARE SHOWN WITHOUT GST . AS ALL THE PURCHASES SHOULD BE SHOWN WITHOUT GST. PLEASE GUIDE ME WHAT TO DO AS I AM FACING THIS PROBLEM DURING 1 PARTY BILL OF STATE PURCHASE AND OTHER PARTY STATE PURCHASE AND INTERSTATE PURCHASE IS SHOWN WITHOUT GST
Hi, Shubham!
If GST is there on a bill, you need to include that in tally for which you have to create different purchase account with GST details.
If there is no GST in the bill, then you have to select a different purchase ledger without the GST details.
Dear Sir,
I have done entry of TDS under GST but how can I see impact of TDS in tally with output GST amount?
Hi, Rajal!
TDS under GST is in essence GST only.
So, it will look under GST. If it is on sales, it will look under Output GST under this method and purchase under Input GST.
we need to create CESS ledger also for GST compulsory !
Hi, Sunpreet!
You need to create a cess ledger only if cess is applicable on your product along with GST.
Otherwise, it won’t be necessary.
Hi how can we save these ledger? Where?
Hi, Amey!
Everything you do in tally is automatically saved.
If you have created ledgers in tally, they are already saved.
You can see them by pressing DAL consecutively.
plz can u send me Practices Question Papers of tally
Hi, Suraj!
For that you have to buy the Tally Expert Course which includes questions.
Here is a link for more detail – https://www.tallyschool.com/tally-expert/
Why don’t upload video of this lesson. Videos are well understood.
Thank you Faiza for your suggestion. I will do it today!
i just wanted to know what details we have to collect from the custmer for making sales entry in tally
Hi, Arun!
If you are making sales to a GST registered person then all the GST details, address and name of the firm.
If the person is not registered with GST, then just the name and address would be sufficient. Take PAN if the sales value is big in the range of ₹50,000+.
Sir I am business man and I will use tally but it creat problem because when I will buy product then tha amount is 500rs but I will sale it in 510
But in gst it will show 510+5%=535.5
But I want it 500+10rs on gst =510 to sale it in proper way
Plz sir help me it will create many problem to me
Hi, Rajat!
You can enable this option in tally.
While in sales voucher, select Configure and set Yes for the option – Rate Inclusive of Tax for Stock Item.
This way, GST will be calculated inclusive of ₹510 as you want.
Sir,
what if i want to create a account say Aman a/c and i created it under the group of bank..but later aman turns out to be my debtor..so do i have to make another acc for aman under the group of sundry debtors?
No, Radhika!
You can alter the ledger in tally as well.
Go to Accounts Info > Ledgers > Alter.
This way you can change the ledger group as you want.
Here is the link to the list of ledger accounts in tally.
I m unregistered dealer and I m selling something to other state ,that time can i take gst?,if yes than what would be entry in tally.erp9
Please give me the suggestion
No, Rashid!
If you are an unregistered dealer, you cannot take the GST credit or GST.
This is what I am understanding in your question.
What is meaning of Gst and TDS
GST is Goods and Services Tax.
TDS is Tax Deducted at Source.
TDS on GST means your GST will be deducted when you sell something to a government company. They will deduct TDS in the form of GST and will give you the rest of the payment.
You can check that out here – https://www.tallyschool.com/tds-entry-in-tally/
Where I can find journal entries?
You can find it here – How to create Journal Entries in Tally
Hello sir ,after pass all the entries of purchase, sale gst in balances sheet duties and taxes are in negative
Hi, Adnan!
Negative means you will get a refund from the government or you can set it off against the future tax liability.