GST Taxation Ledgers in Tally – 5 GST Ledgers – Free PDF Download

GST Taxation Ledgers in Tally - 5 GST Ledgers - Free PDF Download

Whenever you pass a GST accounting entry in tally, you need to use the GST taxation ledgers in tally.

GST taxation ledgers in tally are such that they are calculated automatically but for that you have to create them in a correct way.

What you will learn in this post

  • How to create GST taxation ledgers in tally – CGST, SGST, IGST
  • Learn create GST taxation ledger for Cess in tally
  • How to create GST taxation ledger for UTGST in tally
  • When to use which GST taxation ledger in tally
  • GST taxation ledger in tally creation – PDF download

Introduction to GST Taxation Ledgers in Tally ERP 9

There are total 5 types of GST Taxation Ledgers in tally. They are:

  1. CGST – Central Goods & Services Tax – Applicable in intra-state transactions.
  2. SGST – State Goods & Services Tax – Applicable in intra-state transactions.
  3. IGST – Integrated Goods & Services Tax – Applicable in inter-state transactions and import transactions.
  4. UTGST – Union Territory Goods & Services Tax – Applicable if you are in union territory in replacement with SGST.
  5. Cess – Applicable on certain items in addition to the above GST.

In this post, we will see how you can create these GST taxation ledgers in a way that whenever you use them, GST is calculated automatically in tally.

How to Create GST Taxation Ledgers in Tally – Step by Step

Creating GST taxation ledgers in tally is exactly same as creating any other ledger in tally just with some modifications.

Let’s see how you can create a ledger in tally for CGST step by step.

  • From Gateway of Tally, go to Accounts Info.
  • Then go to Ledgers and then select Create under Single Ledger.
  • Now, you will see a big ledger creation screen.
  • You have to fill up all the details as in the picture below.
Creating CGST Ledger in Tally
Creating CGST Ledger in Tally
  • In the name field, you need to enter CGST.
  • It will be under the head Duties & Taxes in the list of groups in tally.
  • Next option is Type of duty/tax. It will be GST.
  • Tax Type will be Central Tax as we are creating a ledger for CGST.
  • Type NO in the option – Maintain balances bill-by-bill.
  • All other advanced options if enabled, will also be set to NO.
  • Percentage of Calculation will be – 0%. It is because we want tally to take the GST rate from stock items or GST purchase ledgers.
  • Rounding method option will be set to Not Applicable.
  • Set the options of TDS and TCS to Undefined.
  • Leave the Opening Balance option blank and save the ledger.

Congratulations! You have successfully created a GST taxation ledger for CGST.

In the exact similar way, you have to create the ledgers for SGST and IGST.
The only difference will be of Name and Tax Type.

For name, you have to type in SGST and IGST respectively, when you are creating those ledgers.

For Tax Type, select State Tax for SGST and Integrated Tax for IGST.

That’s it. You have now successfully created 3 GST taxation ledgers in tally which are CGST, SGST and IGST.

Now, let us look at how you can create a ledger for cess in GST in tally.

How to Create GST Taxation Ledger for Cess in Tally

The process of creating GST ledger for cess in tally is actually almost same as creating GST ledgers for CGST, SGST and IGST.

But, there is a minor difference that you need to see and I am going to explain you that right now.

Let’s start.

  • From Gateway of Tally, press ALC from your keyboard consecutively, one by one. It is one of 380 + the tally shortcut keys for creating a ledger in tally.
  • Select GST in Type of Duty/Tax and in the option, Tax Type, select Cess.
  • Now, in Valuation Type, there are 3 options which we can use. They are:
    • Any
    • Based on Quantity
    • Based on value
    • Select the option Any because then, we can use this ledger for calculating cess both on quantity and value.
  • In the option, Percentage of Calculation, select 0%, because again, if we select 0% here, tally will automatically calculate the cess from stock item ledger or purchase ledger.
  • Leave all the other options as it is and save the ledger.

Congratulations! You have successfully created a GST ledger for Cess in tally.

Let’s take an example of sales entry with GST and Cess so you can understand it very clearly.

We are selling 5 keyboards at ₹1,000 per keyboard with GST at 18% and Cess at 2%.

We have to alter the ledger for stock items as well as purchase ledger to include the cess at 2% apart from GST at 18%.

When you are in the GST details of stock item, in Cess, select the valuation type as Based on Value and Quantity.

Rate will be 2% cess for this example. Now save the ledger.

Entering Cess in GST Details for Stock Item in Tally
Entering Cess in GST Details for Stock Item in Tally

Now, when you are in the sales voucher in tally, here is how the entire sales entry will look.

Sales Voucher with GST Cess in Tally
Sales Voucher with GST Cess in Tally

I am sure, that now, you have understood, how to pass a sales entry with GST cess in tally.

Now, we will see how you can create a ledger for UTGST in tally.

How to Create GST Taxation Ledger for UTGST in Tally

When you are in a union territory and you supply goods in the same union territory, then CGST and UTGST will be applicable.

For intrastate transactions, CGST and SGST are applicable.
In the same way, for intra union territory transactions, CGST and UTGST are applicable.

There are currently 5 union territories in which UTGST is applicable. They are:

  1. Chandigarh
  2. Lakshadweep
  3. Daman and Diu
  4. Dadra and Nagar Haveli
  5. Andaman and Nicobar Islands

In simple words, UTGST is applicable in union territories because as per the law, SGST cannot be applied to union territories.
Otherwise, UTGST is same as SGST.

Now, we will see how to create a ledger for UTGST in tally.

The process is exactly the same as creating a CGST ledger in tally, which we saw above at the beginning of this post.

Only one thing will change. Let’s have a look at that.

I am taking my home union territory for GST purposes as Andaman and Nicobar Islands which you can set up in GST details in tally.

Company GST Details in Tally for Union Territory
Company GST Details in Tally for Union Territory

After that, go to the ledger creation screen and create a ledger for UTGST as shown in the picture below.

Creating a UTGST Ledger in Tally
Creating a UTGST Ledger in Tally

As you can see in the picture above, instead of state tax, there is UT Tax.
Rest, all the details are exactly same as CGST or SGST.

We have successfully seen how you can create UTGST.

Now, we will see when you can use which GST taxation ledgers in tally.

When to use which GST Taxation Ledger in Tally

You can use these GST taxation ledgers in all the accounting, inventory and order vouchers in tally.

But, mainly they are used in purchase and sales voucher in tally with GST by most of the people.

Do you know when to use to which GST taxation ledger in tally?
I’ll tell you.

  • Intrastate transactions i.e. same state transactions – CGST and SGST are used.
  • Interstate transactions i.e. different states transactions – IGST is used.
  • Intra Union Territory transactions i.e. same union territory transactions – CGST and UTGST are used.
  • Union Territory and State transactions i.e. from state to union territory transactions – IGST is used.

I am now sure that you won’t have any difficulty in passing the GST transactions in tally.

GST Taxation Ledger in Tally Creation – PDF Download

Download the PDF of the entire post so that if you don’t have an internet connection, your work will not be stopped.

PDF will be available soon after the post is published.

GST Taxation Ledgers in Tally – 5 Ledgers – Video

The video will be uploaded soon after the post is published.

Conclusion

In this post, you have learnt how you can create different types of GST taxation ledgers in tally.

We have seen all the GST ledgers including CGST, SGST, IGST, UTGST and Cess. We have also seen when to use which GST ledgers in tally.

Now, whenever you create a GST purchase or sales entry in tally, you will know when to use which GST ledger as well as when not to use which GST ledger.

Still, if you have any difficulties or doubts in GST ledgers in tally, please comment down below and I help you solve your doubts.

I reply to each and every comment.

16 thoughts on “GST Taxation Ledgers in Tally – 5 GST Ledgers – Free PDF Download

  1. Mayank Lahoti says:

    I recently started managing personal accounts in tally. I want to maintain account onwards 01/04/2018

    As on 31st March 2018, I had 11111 TDS on assets side. How to do entry for that, what ledgers i need to create for same and I have received refund of 10550 on 26/09/2018.

    • Rishit Shah says:

      Hi, Mayank!

      For that you have to create one ledger. They are:

      TDS Receivables under Loans & Advances (Assets)

      Entry for refund will be:

      Bank A/c Dr ₹10,550
      To TDS Receivables A/c ₹10,550

  2. Mayank Lahoti says:

    How to create CGST, SGST, IGST Payable A/c & Electronic Cash Ledger? Do we need to create separate Electronic Cash Ledger for CGST, SGST, IGST? How to pass entry for the same?

    • Rishit Shah says:

      Hi, Mayank!

      You do not have to create CGST, SGST, IGST Payable A/c because once you create them under Duties & Taxes, they automatically act as either payable or receivable on the basis of credit and debit balance of GST taxation ledgers in the balance sheet in tally.

  3. Surendra says:

    Dear Rishit,
    I want to learn from you, how is tally useful in following situations :
    1. For a wholesaler or a retailer whose transactions in cash as well as credit ?
    2. How can he maintain particular debtors or creditors records who will purchase in cash and credit ?
    3. When a buyer purchase some goods in cash than how can we maintain the buyer data in tally from single entry ?

    • Rishit Shah says:

      Hi, Surendra!

      1. In Tally, you can record both cash and credit transactions.
      You create a purchase voucher in tally and it is credit transaction. Then you do a cash payment for that.
      If the transaction is cash only, the above method will be same.

      2. Whenever you create a purchase voucher or a sales voucher, you have to mention the person. That way, you can get the entire list of debtors and creditors.

      3. When a buyer purchases from cash directly in case of retail sales, you can use a voucher type called POS Sales in tally.

      If you still have any questions, please let me know. 🙂

  4. Zubin Malhotra says:

    I deal in a item category on which GST is Nil (Books). Yet we are required to have a GST registration and file returns. My queries are:
    1) In every GSTR-3B return we have have to reverse/cancel the GST input accumulated on purchases. How will this be done in Tally?

    2) When preparing the BS/P&L will the CGST/IGST/SGST ledgers be included in the final output?

    • Rishit Shah says:

      Hi, Zubin!

      You have to pass a stat adjustment entry in tally for reversing the accumulated imput tax credit.
      It is a simple journal entry but with stat adjustment.

      CGST, IGST and SGST ledgers will be included in the Balance Sheet if there is anything outstanding or if there is refund.
      So, in effect, they will be included in balance sheet.

      They will also be included in profit and loss account if you are not getting credit which is your case. It will become an expense for you.

  5. ROJA Y B says:

    Hai sir,

    I am Roja, I am new join to one company and I don’t have experience in tally, from auditor office they asked GST of 2017-18 year, so what am I do???

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