Multiple Tax Invoice in Tally under GST – Easy and Simple

Multiple Tax Invoice in Tally under GST

Today, I am going to explain you how you can create multiple tax invoice in Tally under GST.

In the previous post, I have explained how you can create a GST entry in Tally.
But it was for one single rate and not multiple GST rates.

So in this post, I am going to explain how can create a GST Invoice if you want to sell different products attracting different rates of Goods and Services Tax which in simple words is multiple tax invoice in Tally for GST.

For example, if you are selling a mobile phone and a computer, both of which attracts different GST rates.
This is how most of the people sell their products because there are a lot of different rates for different categories of products.

Computers and mobiles both belong to the electronics category but attract different rates of GST in India and that is the reason for creating this post along with the video at the end.

Before we start, please enable and configure GST in Tally if you already have not done that otherwise you won’t see the GST options in Tally at all.

Okay, let’s start!

Creating Stock Items with GST in Tally

We will create two stock items in Tally so you can know how to enter two different products attracting two different GST rates in Tally.

Check out how to use Stock Items in Tally if you don’t know that.

Two products for our example are:

  • Mobile – 12% which means 6% CGST and 6% SGST
  • Computer – 18% which means 9% CGST and 9% SGST

Let us create a stock item called Mobile and configure it for GST at the same time. It will be fun. 🙂

  • From Gateway of Tally, go to Inventory Info.
  • Then go to Stock Items
  • Now, select Create
  • Enter Name – Mobile. Go to Units option by pressing Enter 3 times.
  • Press ALT+C to create a new unit called Number if you have not created a unit of measure of numbers.
    • Type Number in the Symbol option and press Enter 4 times.
  • Now, you will be at the GST options under the Statutory Information section on the right hand side of the screen.
  • Select Applicable in the option called GST Applicable.
  • Type Y and press Enter in the option Set/alter GST Details and you will see a GST details screen for the stock item.
  • In the Description under the HSN/SAC Details menu, enter something about the product and in HSN/SAC, enter the HSN code of your product.
  • Now comes the important part of entering the GST rate details. In calculation type, select On Value.
  • In Taxability, select Taxable.
  • Under Tax Type, there is Integrated Tax, Central Tax, State Tax and Cess. Enter 12% in Integrated Tax and Tally will auto calculate the remaining GST rates for the stock item in Tally to 6% each for Central Tax and State Tax.
GST Details for Stock Item in Tally
GST Details for Stock Item in Tally
  • Press Enter and you will be back again at the Stock Item Creation screen.
  • Select Goods in Type of Supply because we are selling goods.
  • Stock Item is almost created and now we will enter the opening balance for the stock that we already have. I will enter the opening balance stock as under:
    • Quantity – 10
    • Rate per unit – ₹10,000
    • Value will be auto-calculated in Tally which will come to 10 x 10,000 = 1,00,000
  • Press Enter and when Tally asks you to Accept, press Enter once again.

Here is how all the details needs to be put while you create Stock Item with GST in Tally.

Stock Item Creation in Tally with GST
Stock Item Creation in Tally with GST
[thrive_custom_box title=”Congratulations!” style=”light” type=”color” color=”#3facd6″ border=”#3facd6″]You have successfully created a Stock Item with GST in Tally.[/thrive_custom_box]

In the exact same way, you need to create another stock item called Computer as per our above example.

The only difference would be of the GST rate as we will create multiple tax invoice in Tally under GST and therefore in Computer, the GST rate will be 18% and you are done.

Now that you have created both the stock items with GST configuration in Tally, we will move ahead and create taxation ledgers or GST Taxation Ledgers in Tally.

How to Create GST Tax Ledgers in Tally

The main purpose behind creating GST Taxation ledgers in Tally is to auto calculate GST in Tally.

By creating GST Tax Ledgers in Tally, you don’t need to calculate GST every time on your own at the time of creating a GST Sales Invoice or GST Purchase Invoice. Tally will auto calculate it for you.

Another purpose for creating GST Tax ledgers in Tally is for GST Returns as they are automatically prepared in Tally on the basis of GST Tax Ledgers.

So, let us create a GST Tax Ledger in Tally. It is as simple as creating a ledger in Tally.

We will create total 4 types of GST Tax Ledgers and they are:

  • Input CGST – For Sales in your state
  • Input SGST – For Sales ins your state
  • Output CGST – For Purchases from your state
  • Output SGST – For Purchases from your state

Let’s create a ledger Input CGST.

Creating a ledger for Input CGST in Tally

  • From Gateway of Tally, go to Accounts Info.
  • Then select Ledgers.
  • Now, select Create under Single Ledger.
  • In the Name option enter Input CGST.
  • Select Duties & Taxes for the option Under.
  • Select GST for Type of duty/tax.
  • Select Central Tax for Tax Type.
  • Now comes the important part which is Percentage of calculation. You have put 0% there and the reason is that we have already set the percentage in the Stock Item and therefore Tally will automatically pick the percentage specified in the Stock Item when we will select Input CGST while creating multiple tax invoice in Tally under GST.
  • Select Not Applicable in Rounding Method. Alternatively, you can select a preferred rounding method if you want.
  • Now, press Enter 3 times and the Input CGST ledger will be successfully created.

Here is how you need to fill in all the details while creating a GST Taxation Ledgers in Tally.

Creating GST Taxation Ledger in Tally - Input CGST
Creating GST Taxation Ledger in Tally – Input CGST

In the same way, you need to create remaining 3 GST Tax Ledgers. The only difference would be of the name and nothing else.

Go ahead and create all the 3 GST Tax Ledgers and I’ll show you two more important ledgers that you need to create to successfully generate multiple tax invoice in Tally under GST.

After you have successfully created all the GST Tax Ledgers, we will move on to create sales ledgers and purchases ledgers for GST as they are needed to for creating sales invoice with multiple GST rates in Tally.

Same goes when you will try to create purchase invoices with multiple GST rates in Tally.

Creating GST Sales Ledgers and GST Purchases Ledgers in Tally

We need to create one different ledger for one rate of GST in Tally. The reason behind this is simple.

It will help differentiate sales in profit and loss account as well as in GST returns on the basis of rates.

So, for our example we have two rates and therefore we will create two different GST Sales Ledgers as well as two different GST Purchase Ledgers.

We will create the following ledgers under Sales Accounts:

  • Sales – 12%
  • Sales – 18%

And following ledgers under Purchase Accounts:

  • Purchases – 12%
  • Purchases – 18%

Let’s start and create the first ledger named Sales – 12%

Creating GST Sales Ledger – 12% in Tally

  • From Gateway of Tally, go to Accounts Info.
  • Go to Ledgers.
  • Select Create under Single Ledger.
  • Enter the name Sales – 12%.
  • Select Sales Accounts in the option called Under.
  • Set YES in the option Inventory Values are Affected?
  • Now comes the important part which is about GST. Select Applicable in the option which asks Is GST Applicable?
  • Type Y and press Enter in Set/Alter GST details and you will see an almost same screen of entering GST details which you had seen when you were entering the GST information while creating Stock Items for GST.
    • In the option Nature of Transaction, select Sales Taxable since we are selling inside our own state. If any other option is applicable to you, please select that option.
    • In Tax Type, put 12% in Integrated Tax and press Enter as Tally will automatically take 6% each for Central and State Tax.
    • Now, you will be back at GST Sales Ledger creation screen. Select Goods in Type of Supply.
    • Now press Enter until you are asked to Accept and then again press Enter to save the GST sales ledger for 12%.
GST Details for Sales Ledger in Tally
GST Details for Sales Ledger in Tally

This is how you need to create the Sales Ledger for 18% as well as the GST Purchases Ledgers for 12% and 18%.
While creating GST Purchase Ledgers, please take care that you select Purchase Accounts for the option Under.

Here is how you need to fill in all the details while creating a GST Sales Ledgers in Tally.

Creating GST Sales Ledger in Tally
Creating GST Sales Ledger in Tally
[thrive_accordion_group title=”A Quick Recap”][thrive_accordion title=”Let’s recap what we have done till now.” no=”1/1″ default=”yes”]

We have created:

  • 2 Stock Items with GST configuration
  • 4 GST Taxation Ledgers with GST configuration
  • 2 GST Sales Ledgers, one for 12% GST and one for 18% GST
  • 2 GST Purchases Ledgers, one for 12% GST and one for 18% GST
[/thrive_accordion][/thrive_accordion_group] I will assume that you have also created the above ledgers and stock items as I have explained.

Now, we have to create a ledger for Debtor to whom we are selling the goods and a ledger for Creditor from whom we are purchasing.
And, you guessed it right, they both have to be GST configured.

Let us first create a ledger for Sundry Debtor.

Creating GST Ledger for Sundry Debtor in Tally

Okay, let’s start.

  • From Gateway of Tally, press A, then L and then C. This is a shortcut in Tally for creating new ledgers.
  • In the Name field, enter the name, which in our case will be Rohan.
  • Now, select Sundry Debtors from the list of accounts.
  • Enter NO in the option Maintain Balances bill-by-bill.
  • Type YES in the option – Inventory Values are Affected.
  • Now, come to the last option Set/Alter GST Details and type Y and press Enter. You will a small menu called GST Details.
    • In Registration Type, select Regular.
    • Enter the GSTIN. I have entered a random number for the example.
    • Select Not Applicable in Party Type.
    • Select NO in the last option for e-Commerce operator.
    • Now press CTRL+A to directly save the ledger. This is also one of the shortcuts in Tally.
GST Details for Sundry Debtor in Tally
GST Details for Sundry Debtor in Tally

Similarly, you need to create a Sundry Creditor and you can put the name of your choice. For our example, I have put the name Amit.

Here is how your Sundry Debtor Ledger will look like while you will be creating it.

Creating GST Sundry Debtor Ledger in Tally
Creating GST Sundry Debtor Ledger in Tally

Just to let you know that while creating Sundry Creditor ledger in Tally for Amit, select Sundry Creditor in the option Under.

Now, we have all the necessary ledgers and stock items which are needed to create multiple tax invoice in Tally under GST.

Let’s first start by creating multiple tax invoice in Tally under GST for Sales and then we will move on the purchase invoice with multiple GST rates.

Creating Sales Invoice with Multiple GST Rates in Tally

It is very simple to create a sales invoice in Tally with multiple GST rates because we have already done the major work of creating ledgers, GST Tax Ledgers and Stock Items with GST.

GST Sales Invoice in Tally with multiple GST Rates in Tally
GST Sales Invoice in Tally with multiple GST Rates in Tally

Let’s start.

  • From Gateway of Tally, go to Accounting Vouchers.
  • Then select Sales by pressing F8 or just click on it on the right hand side green bar.
  • Now, before moving on, we have to alter one more setting right now so that we can actually multiple tax invoice in Tally under GST for Sales.
    • Press F12 which is for configuration.
    • There is an option called Use Common Ledger Account for Item Allocation. Set that to NO.
  • Now, coming back to the main screen which is also called Accounting Voucher Creation screen, select Rohan from the List of Ledger Accounts.
  • Press CTRL+A when you see the yellow screen asking you to enter more details about the debtor.
  • Now, select Mobile from the List of Stock Items and enter
    • Quantity – 5
    • Rate of ₹12,000 per unit.
    • As soon as you will press Enter, the total amount will be automatically calculated to ₹60,000.
  • You will now see a small menu on the left side of the screen asking for Sales Ledger. Select Sales – 12% which we earlier created.
Accounting Details for Stock Item in Tally
Accounting Details for Stock Item in Tally
  • Similarly, select Computer in the next line and enter
    • Quantity – 5
    • Rate of ₹25,000 per unit.
    • This time, select Sales – 18% and press Enter.
  • Now press Enter two times and select the GST Taxation Ledgers which we created earlier.
  • Select Input CGST and Input SGST and they will be auto calculated in Tally.
  • We have completed around 95% of creating multiple tax invoice in Tally under GST for Sales.

You can see the calculation of multiple GST rates for multiple products by pressing ALT+A.
Press CTRL+A to save the sales invoice.

Tax Analysis of GST Sales Invoice in Tally
Tax Analysis of GST Sales Invoice in Tally
[thrive_custom_box title=”Congratulations!” style=”light” type=”color” color=”#3facd6″ border=”#3facd6″]You have successfully created multiple tax invoice in Tally under GST for Sales.[/thrive_custom_box]

Now, we will move on to creating multiple tax invoice in Tally under GST for Purchases.

Creating Purchases Invoice with Multiple GST Rates in Tally

Now that you already know that it is very easy to create a multiple tax invoice in Tally under GST, let’s start and create a purchase invoice in Tally.

GST Purchase Invoice in Tally with multiple GST Rates
GST Purchase Invoice in Tally with multiple GST Rates
  • From Gateway of Tally, go to Accounting Vouchers.
  • Press F9 for Purchase.
  • Select Amit for the Party A/c Name and press CTRL+A when you see the yellow screen.
  • Type Computer and select it from the List of Stock Items.
    • Enter Quantity – 5
    • Rate – ₹20,000 per unit
    • Total amount will be automatically calculated in Tally.
  • Now, when the small menu appears on the left hand side of the screen, select Purchase – 18% from the list and press Enter.
  • Similarly, select Mobile from the list of stock items again.
    • Enter Quantity – 5
    • Rate – ₹10,000 per unit and the total amount will be calculated automatically.
  • Again, select Purchases – 12%, when a small grey menu appears on the left hand side of the screen.
  • Select Output CGST and then Output SGST and you will see how GST is auto calculated in Tally.
  • You can press ALT+A to see the tax allocations for GST on different products and different rates in a purchase invoice.
  • After you press ALT+A, press ALT+F1 for a detailed view.
Tax Analysis of GST Purchase Invoice in Tally
Tax Analysis of GST Purchase Invoice in Tally
[thrive_custom_box title=”Congratulations!” style=”light” type=”color” color=”#3facd6″ border=”#3facd6″]You have successfully created a Purchase Invoice with multiple GST rates in Tally.[/thrive_custom_box]

Multiple Tax Invoice in Tally under GST – Hindi Video

[responsive_video type=’youtube’ hide_related=’0′ hide_logo=’1′ hide_controls=’0′ hide_title=’0′ hide_fullscreen=’0′ autoplay=’0′]https://www.youtube.com/watch?v=7XtISv8FqzI&[/responsive_video]

At the End…

I am sure you have successfully created GST sales invoice as well as GST purchase invoice in Tally with very much ease by following the above instructions.

The process may seem a bit long but once you have created all the ledgers, you don’t need to create them again and you can create multiple tax invoice in Tally under GST very quickly.

This is how you should create multiple tax invoice in Tally under GST. The best thing is that GST is auto calculated in Tally whenever you create an invoice.

You can also name the items like Mobile – 12% or Computer – 18% just as the GST Sales and GST Purchase ledgers that we have created so you don’t have to remember the GST percentage every time you create an invoice.

If you want to create GST Services Invoice, you can follow the same method above except a few changes.

  • Type SAC instead of HSN code.
  • The invoice will be Accounting Invoice and not Item Invoice as we have created in this post.
  • And you’re done.

If you have any questions or suggestions, comment down below and I’ll be happy to help you.

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24 thoughts on “Multiple Tax Invoice in Tally under GST – Easy and Simple

    • Rishit Shah says:

      Hi, Jayson!

      When you purchase, you pay the amount from the person you purchase and therefore you pay tax along with the amount.

      So, the tax is going out and hence, output tax.

      • Krunal Shah says:

        Hi Rishit… Thanks for this article n this web site…
        I want to make one correction abt the naming convention u used…viz output tax n input tax. Here the term output and input is not used for tax direction. Its used for goods/services direction. If goods or service moved in… Then the tax on it is input tax and if it moves out then the tax on it is output tax. So sales will hv output tax and purchase will have input tax. Just a naming convention though, but the debit n credit in tax ledgers will be perfect regardless of wht terms u used.
        Thanks,
        Krunal

        • Rishit Shah says:

          Hi, Krunal!

          Thank you for your suggestion. Actually I know this and from now on, I will use the convention as you said because this is what most of the people are using.

          Thank you for stopping by and writing this long comment. 🙂

  1. Satyadeep Borah says:

    Thank you respective sir/madam for this wonderful example. I can easily calculate different rates of GST in purchase and sales ledger.

    • Rishit Shah says:

      Hi, James!

      For that you have enable one option in Tally.

      When you press ALT+P to print the voucher, press F12 for configuration.
      Now, under Statutory Details, make sure Print GST% column is set to Yes.

      You will now see the GST rate item wise.

  2. Ashish Kumar says:

    Dear Sir. your post is very Usefull. very Thank you.
    Kindly provide Notes for GST processing Notes for Goods and Services also. step by step

  3. N.SOWRIRAJAN says:

    When sell goods or services inside your state are called Output CGST,Output SGST
    When buy goods or services inside your state are called Input CGST, Input SGST
    When we create Multiple Tax Invoice -Sell goods or services invoice shows Input CGST,Input SGST
    Buy goods or services Invoice shows Output CGST,Output SGST- Is it due to party Name changed or any other reason-Kindly explain

    • Rishit Shah says:

      Hi,

      You should see all the input and output ledgers no matter whether you are passing purchase or sales entries.

      Make sure you have created the GST Taxation ledgers under Duties & Taxes and GST is selected.

    • Rishit Shah says:

      Hi, Dev!

      You cannot enter multiple tax invoice with Accounts Only.
      What you can do is create Accounting Invoice instead of Item Invoice.

      That way it will work with cost centers as well.

  4. kartik says:

    Sir
    First of all thanks to you for providing this course. I am facing a bit confusion with calculation of IGST rates since it is not being calculated automatically while SGST and CGST are bring calculated. So can you help me out ?

    • Rishit Shah says:

      Hi, Kartik!

      This happens because IGST is calculated when you sell outside your state.
      If you are selling goods to someone and in his ledger if the state is the same as your state, IGST will not be calculated automatically.

      Further, check the Sales Ledger as sometimes it is selected for SGST and CGST so it will not calculate IGST.

  5. Ullas says:

    dear sir is it possible that we dont have to select gst rate every time which you selected in this point-

    You will now see a small menu on the left side of the screen asking for Sales Ledger. Select Sales – 12% which we earlier created.

    And system automatically take rate as we entered such rate in stock item creation, if it is so then how?

    • Rishit Shah says:

      Hi, Ullas!

      You do not have to take the GST rate every time.
      But, you do have to enter the GST ledgers every time otherwise GST will not be calculated.

      You can use the Voucher Classes if you do not want to enter the GST taxation ledgers every time but it is an advanced technique.

  6. fazlurrahman says:

    Dear Rishit Shah,

    I am very glad to see this lesson its useful for me, i learn more from GST Online filling and Input & Output return

    Rgs
    Fazlur Rahman

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