Purchase Entry in Tally – GST Automatic Calculation – PDF Download

Purchase Entry in Tally - GST Automatic Calculation - PDF Download

Purchase entry in tally used whenever there is a purchase bill or you purchase something for your business.

In tally, for passing the purchase entry, we need to use the purchase voucher in tally.

We will be looking at different kinds of purchase entries in tally including purchase of fixed assets in tally.

What you will learn in this post

  • How to enter purchase entry in Tally ERP 9 with GST – including IGST, CGST & SGST
  • How to enter cash purchase entry in tally with GST
  • How to enter fixed assets purchase entry in tally with GST
  • How to enter services purchase entry in tally with GST
  • Purchase entry in tally with GST automatically calculated – free PDF download

Introduction to Purchase Entry in Tally with GST

Whenever you purchase something or you are doing accounting in tally for purchase entries, there is one voucher that you can use and it is the purchase voucher in tally.

For any kind of purchases you can think of, you can use purchase voucher in tally.

Today, we are going to look at different purchase entries in tally with different examples and transactions that happen in real life.

Let’s start and we will see different kinds of purchase entries in tally.

How to enter Purchase Entry in Tally ERP 9 with GST – including IGST, CGST & SGST

Entering a purchase entry in tally with GST is very simple and easy.

But, we need to take care of some of the things before we will be able to pass the purchase entry in tally with GST.

We have to create the following ledgers
They are:

  1. GST Taxation Ledgers – IGST ledger, CGST ledger and SGST ledger
  2. Sundry Creditors Ledger with GST – the person from whom we are purchasing
  3. Purchase Account Ledger with GST – a ledger for recording all the purchases in the profit and loss account.
  4. Stock Items Ledgers with GST – this for maintenance of stock in tally and for GST return in tally.

That’s it.

Let’s start with the first point.

GST Taxation Ledgers in Tally

These ledgers are the ledgers that we use to calculate GST in tally whenever we purchase something or sell something in tally on which GST is applicable.

The good thing about these ledgers is that, once you have configured these GST taxation ledgers, they will calculate GST automatically, every single time.

We need to create 3 types of GST taxation ledgers in tally. They are:

  1. CGST – Central Goods & Services Tax
  2. SGST – State Goods & Services Tax
  3. IGST – Integrated Goods & Services Tax

SGST and CGST are used when there is an intra-state i.e. same state transaction. IGST is used when there is inter-state transaction i.e. different states transaction.

I have created an entire post and a video for the creation of different GST taxation ledgers in tally. – Link will be available once the post is published.

You can go through them by clicking on the link above. You will also find some more GST taxation ledgers in that post like UTGST, Cess and so on.

It is very easy to create them and it is even easier to use them.

Now, let us move on to the second point. It is about sundry creditors ledger in tally.

Sundry Creditors Ledger in Tally with GST

If you know how to create a ledger in tally, then creating sundry creditors ledger in tally is as simple as applying ghee on a roti.

Let me show you how to do it in tally right now.

  • From Gateway of Tally, Accounts Info.
  • Then go to Ledgers and then select the option Create under Single Ledger.

Now, you will see a ledger creation screen in tally as shown in picture below. Let’s call her Divya.

Sundry Creditors ledger with GST
Sundry Creditors ledger with GST

We can create more ledgers like this for different sundry creditors in our business or client’s business.

The method will be exactly the same.

Now, we will move onto the next step in which we will create purchase account ledger in tally with GST.

Purchase Account Ledger in Tally with GST

When we create a purchase entry in tally, we need to record the purchase through a purchase ledger.

We cannot record purchases in tally directly into the profit and loss account.

Therefore, we are going to create a purchase ledger in tally with GST. Here are the steps:

  • From Gateway of Tally, Accounts Info.
  • Then go to Ledgers and then select the option Create under Single Ledger.

Now, let us take the GST rate as 18% for which we are going to create a purchase entry in tally.

So, we will name the purchase ledger as – Purchases – 18%.

Because of this, even by seeing the name of the purchase ledger, we will be able to know that it is of 18% GST.

This is how it will look in tally when you create a purchase ledger with GST.

Creating Purchase Ledger with GST in Tally
Creating Purchase Ledger with GST in Tally

And, this is how you have to enter the GST details for a purchase account ledger in tally with GST.

GST Details for Purchases Ledger in Tally
GST Details for Purchases Ledger in Tally

Now, we have to do one last thing before we create the final purchase entry in tally with GST.
It is stock items in tally with GST.

Stock Items in Tally with GST

When there are goods in a purchase bill in tally, you have to use stock items in tally because it is the easiest way to record that transaction.

Goods means stock items in tally.

I am going to show you, how you can create a stock item with GST in tally and then you can create thousands of stock items like that in tally.

Here are the steps to create stock items in tally with GST:

  • From Gateway of Tally, go to Inventory Info.
  • Then go to Stock Items and then select the option Create under Single Stock Item.

Or you can press IIC consecutively from the gateway of tally to directly come to the stock item creation screen in tally.

We will create a stock item named mouse. Here is how it will look in stock item creation screen.

Creating Stock Item in Tally with GST
Creating Stock Item in Tally with GST

And, here is how it will look when you are entering the GST details of stock items in tally.

GST Details for a Stock Item in Tally
GST Details for a Stock Item in Tally

After you have created the stock item in tally with GST, we are finally going to pass a purchase entry in tally with GST.

Let’s do that.

Purchase Entry in Tally ERP 9 with GST – Item Invoice

Now, go to the accounting vouchers, select purchase voucher or press F9 which is the shortcut for purchase voucher in tally.

Here is how it will look in tally.

Purchase Voucher in Tally with GST
Purchase Voucher in Tally with GST

You have to take care of the accounting details while creating a purchase voucher in tally with GST.

It is as shown in the image below.

Accounting Details for Purchase Entry in Tally with GST
Accounting Details for Purchase Entry in Tally with GST

While passing the purchase entry in tally, if you have done everything correctly, then GST will be calculated automatically on entering the CGST and SGST ledgers.

This is the sign that you have done everything correctly.

If it does not get calculated automatically, then you will have to check at each stage whether you have done any mistake or not.

You will find a mistake very fast this way and you will successfully pass the accounting entry for purchases in tally with GST.

In the above example, I have created the entry with CGST and SGST. You can create a similar entry with IGST if you are purchasing from a different state.

Entire process will be same as before. You just have to select IGST. That’s it.

Now, we will move on to our next topic of this post which is cash purchase entry in tally with GST.

Cash Purchase Entry in Tally with GST

There are two types of purchase entries in tally with GST when it comes to payment in cash.

They are:

  1. Purchase from GST registered dealer
  2. Purchase from GST unregistered dealer

When you purchase from GST registered dealer, you will have to do the exact same entry as above.

After that, you just have to make a cash payment entry which is very simple.

It will be a simple payment voucher in tally and the entry will be like in the picture below.

Cash Payment Voucher in Tally with GST
Cash Payment Voucher in Tally with GST

Now, coming to the second point, when you purchase from a GST unregistered dealer, the purchase entry for that will also be the same as above purchase entry.

The only difference would be that instead of putting the sundry creditors name in the party account field, you just have to select the cash ledger in the purchase voucher itself.

When you purchase directly for cash, it is assumed that the purchase transaction is from unregistered dealer and GST will be applicable under reverse charge.

Therefore, GST will not be in the purchase voucher. A separate accounting entry for that has to be done to raise the GST liability for yourself.

Let me show you that in the image itself.

Creating Purchase Entry with GST in Tally with Cash Payment
Creating Purchase Entry with GST in Tally with Cash Payment

This entry will be done against the cash account in tally directly and cash will be credited which means cash will be reduced.

Let’s go to the next point in our post.

How to enter Fixed Assets Purchase Entry in Tally with GST

Until now, all the purchase entries that we have done in tally, we were using the option of item invoice in tally.

That’s the reason, we have used stock items in tally for all of the above purchase vouchers.

Fixed assets are not stock items. They are fixed assets and are created under the head fixed assets from the list of ledgers in tally.

Therefore, we have to use the option of accounting invoice instead of item invoice in purchase voucher in tally to buy fixed assets.

For example, you purchased fixed assets called laptop for ₹20,000 + IGST of 18% which will amount to ₹3,600.

So, the total amount will be ₹23,600.

For the above example, we have to create two new ledgers which are:

  1. Computer under the head Fixed Assets
  2. Sundry Creditors ledger named Maansi for inter-state transactions as we are using IGST here.

Both the ledgers are very easy to create and I am not showing the entire process to create the ledgers here.

You can go to this post in which I have explained how to create ledgers in tally step by step.

Now, let us do the purchase entry. It will look something like in the picture below.

Purchase Entry in Tally for Purchase of Fixed Assets in Tally with GST
Purchase Entry in Tally for Purchase of Fixed Assets in Tally with GST

You have to choose the option of accounting invoice from the right hand side green bar with all the options.

Here is how the GST details for the fixed asset will look like in tally.

GST Details for Fixed Assets Ledger in Tally
GST Details for Fixed Assets Ledger in Tally

And, here is how the fixed assets ledger creation will look like in tally.

Fixed Assets Ledger in Tally with GST
Fixed Assets Ledger in Tally with GST

Now, we will move on to the next point which is services purchase entry in tally with GST.

How to enter Services Purchase Entry in Tally with GST

Till now, we have seen the purchase entry of either goods or fixed assets both of which included some kind of a product.

Now, we will see how you can pass a services purchase entry in tally with GST.

For that, we have to create one more ledger for services with GST.
We will call it interior designing services and it will have 18% GST rate.

In this example, we will take ₹30,000 as the amount of interior designing services purchased from Maansi. GST will be calculated separately at 18%.

Let’s see how that ledger is created. Here is the picture of how it looks in tally.

Creating Services Purchase Ledger in tally with GST
Creating Services Purchase Ledger in tally with GST

Here are the GST details of the above interior designing services ledger in tally.

GST Details for Services Ledger in Tally
GST Details for Services Ledger in Tally

Now, we will move in the purchase voucher in tally and we will pass the purchase of interior designing services from Maansi with GST in tally.

It will look similar to the image below in your tally.

Purchase Entry of Services in Tally with GST
Purchase Entry of Services in Tally with GST

In this example, I have considered inter-state purchase but you can take intra-state as well, as per your requirements.

We have covered most of the purchase entries in tally with GST that are generally used.
You can download the PDF of this entire post below.

Purchase Entry in Tally with GST Automatically Calculated – Free PDF Download

Download this post as a guide so even if you don’t have internet, you can do your work in tally.
PDF will be available soon once the post is published.

Purchase Entry in Tally with GST Automatically Calculated – Video

Video will be uploaded soon after the post is published.

Conclusion

In this post, I have tried to cover different kinds of purchase accounting entries in tally with GST.

We saw purchases of goods, services as well as fixed assets in tally. We also saw intra-state purchases and inter-state purchases with GST.

We saw purchase directly through cash in tally as well.

I am sure now that if you have to pass a purchase entry in tally, you will be able to do it hands down without any mistakes.

If you still find any difficulties or problems, please comment down below and I will help you.
I reply to each and every comment.

8 thoughts on “Purchase Entry in Tally – GST Automatic Calculation – PDF Download

    • Rishit Shah says:

      Hi, Rishabh!

      There are certain posts for which I have created PDF files. You can see it in the title of the post.
      You can download them at the end of the posts.

      For other posts in which there are no PDF files, you can save the web page and then save it as PDF.

  1. Sunny says:

    Dear Rishit, your concept is very accurate and way of teaching is superb. I have a doubt regarding Entry of services in tally. In the above post u have taken Interior designing under Purchase. Why not in indirect expenses ? Pls tell me when to select purchase or indirect exp

    • Rishit Shah says:

      Hi, Sunny!

      It totally depends on what your business is and what is important for your business.
      For example, if interior services form a core part of your business, it can be under purchases or direct expenses because it is more directly related to your business.

      Similarly, if it forms a small part of your business and does not affect the business much, even if it is not there, you can group it under indirect expenses.

      This is applicable to all of the groupings of ledger under tally.
      You can also read this post to get morr info and understand this concept even better.
      List of Ledger Accounts in Tally & Groups in Tally + PDF & GST Updated

    • Rishit Shah says:

      Hi, Sushmitha!

      It can be because of many reasons. Please check the following to get CGST and SGST automatically.

      1. Check all the ledgers and make sure the GST details are same everywhere.
      2. Check the Sundry Debtors and Creditors ledger and verify that you have entered states in the address.
      3. For stock items, check the GST details properly.
      4. For Purchase or sales ledger, check the GST details and make sure they match with stock items.
      5. Check the GST taxation ledgers and verify if they are configured correctly. That is, percentage set is 0.

      If still you are not able to calculate CGST and SGST correctly, please email me on rishit@tallyschool.com.

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