In this post you are going to learn how you can Enable and Set GST Details in Tally.
Once you have upgraded your Tally to the latest version 6.0, which for the first time includes GST (Goods and Services Tax) functionality in Tally, you have to set the GST details in Tally.
And, for setting the GST details, you need to Enable GST in Tally.
But don’t worry, it is very easy to enable and set GST details in Tally. I will walk with you through each step.
In the previous post, I have explained how you can upgrade Tally to the latest version 6.0 which includes the GST functionality.
So, if you have not yet upgraded your Tally to the latest version, have a look at that post.
Moving ahead, I am assuming you have upgraded your Tally with the latest version which includes the GST functionality and therefore we will now see how you can enable Goods and Services Tax – GST in Tally.
How to Enable Goods and Services Tax – GST in Tally
If you are familiar with the previous taxation functions (VAT, Service Tax and so on) in Tally, then let me tell you that the process is almost the same for GST.
Even if you are not familiar with the taxation functions, I am going to explain everything to you in detail.
So, chill and relax. 🙂
- From Gateway of Tally, go to Features by pressing F11 and you will see a menu as in the picture below.
- Now, go to Statutory & Taxation and you will see a screen which is called Company Operations Alteration.
Do you notice the name of the screen – Company Operations Alteration on the top left hand corner of the picture.
Sometimes small things matter the most and that name is indeed in a small size.
This is the level of detail and effort I put into to create each and every post and video on TallySchool.
I just want to make sure, you understand Tally in detail and in a better way.
- Now, you see two options.
- Enable Goods and Services Tax (GST)
- Set/alter GST details
- First, we will enable GST in Tally and then we will Set the GST Details.
- Well, enabling is pretty easy.
- Press Y in the option Enable Goods and Services Tax (GST) and press Enter.
- Congratulations! You have enabled Goods and Services Tax in Tally.
I know this was just a simple step but it is required in order to go ahead and set the GST details in Tally.
Enabling the GST in Tally will open up all the functions of GST in Tally. This includes GST functions in ledgers, reports, returns and so on.
You may think it is just a small step, but trust me it is a big step which affects the whole functioning of Tally.
Now, you will see GST option in almost every place in Tally which previously was not available.
Moving forward, let me show you how to set and alter GST details in Tally.
How to Set GST Details in Tally
You will need the following to set GST Details in Tally.
- a valid GSTIN – Goods and Services Tax Identification Number,
- Rate of GST – for example – 28% IGST divided into 14% CGST and 14% SGST and
- HSN Code – Harmonized System Nomenclature which is different according to the product or service you sell.
You will have all the details if you have registered for GST on the GST Portal.
If you do not have any of the above details, it is perfectly okay. You can simply go through this post to know the method to set GST details in Tally.
In fact, I will be using fake GSTIN and fake HSN for the explanation of this post.
So, hop on with me. Let’s start. 🙂
I am assuming you are already at the Company Operations Alteration screen where you enabled GST.
- Press Y against the Set/alter GST details option and press Enter.
- You will see the Company GST Details screen as shown in the picture below.
- First option is State – Select your State or the state in which the business is located. Mine is Gujarat.
- Second option is Registration type – Regular
- GSTIN/UIN – Enter the GSTIN or UIN. It will be printed on the invoices later when you create ledgers related to GST in Tally.
- Applicable from – This is date from which GST is applicable to you. Most probably it will be 1st July, 2017.
- Set/alter GST rate details – This is where you will enter the rates of GST according to the product you sell.
- Press Y and press Enter to enter the rates and HSN details as in the picture below.
- Write the Description about the goods or services you sell on the basis of your HSN Number.
- Enter the HSN Number.
- In Tax Details, there are 3 options.
- Nil Rated
- Most probably, you will have to select Taxable option because your goods or services will be taxable under the GST.
- Next option is Integrated Tax under Tax Type. Tally calculates both the Central and State Taxes exactly half for each of them.
So when you enter 28% Integrated Tax, it will be divided into 14% for CGST and 14% for SGST automatically.
You can also enable Central and State Tax option if you want to see columns for both of them instead of one integrated tax column. Here is how you can do it.
- Press F12 while remaining on the same screen which opens up a Configuration menu.
- Select the last option Show all GST tax types to Yes and press Enter and now you will see Central and State Tax option too as in the picture below.
- Now you can clearly see different options for Central and State Taxes along with Integrated Tax option.
- Enter the Cess percentage if your goods or services have cess applicable to it.
- Press Enter.
- Now you will be out at the Company GST Details screen from where we started.
- Next option is Enable GST Classifications. Leave it to No for now because it is an advanced topic which will take another post for me to explain. It will not affect your entries with GST in anyway as it is an additional option which I will explain later.
- Last option is Provide LUT/Bond Details – If you have signed a Bond or a letter of undertaking (LUT) with the GST Department, you can provide the details about it as shown in the picture below.
- You will have to enter LUT or Bond number and the Validity i.e. from a date to the date till the LUT or Bond is valid.
- Finally Press Enter and you will come at Company Operations Alteration – right from where we started.
- Now, press CTRL+A to save all the details which we have entered.
- Congratulations! You have successfully set GST details in Tally.
How to Alter GST Details in Tally
Well, the alteration process is same as the process of setting it up which you have learned just above in detail.
Alteration is as the name suggests, for changing the details in the future, for any reason.
You can simply come to this menu and alter the details. That’s it.
It is as simple as it sounds.
At the End…
I am sure, you must have learned in great detail about how to Enable and Set GST Details in Tally.
The process is simple and once you know how to do it, it takes very less time to set it up.
If you have any difficulties or suggestions about GST in Tally, please comment it below and I will happy to help you.