GST Sales Entry in Tally

To pass a GST sales entry in TallyPrime, open a Sales voucher (F8), select the customer and the stock item, then add the CGST and SGST ledgers for a sale within your state, or the IGST ledger for an interstate sale. Tally reads the GST rate from the item and fills in the tax amounts for you. Before this works, GST must already be enabled and the CGST/SGST/IGST ledgers created.

Before you start

Make sure you've done the GST setup: GST enabled under F11, a GST rate and HSN on the stock item, and the CGST, SGST and IGST ledgers created under Duties & Taxes. If any of these is missing, the tax won't calculate.

Step by step: intrastate GST sale

Example: selling 10 units of a product at ₹1,000 each (₹10,000) at 18% GST to a customer in your own state.

1. Gateway of Tally ▸ Vouchers ▸ press F8 (Sales).
2. Set the date with F2.
3. Party A/c name — select the customer (they should have a GSTIN in their ledger).
4. Select the Sales ledger.
5. Choose the stock item, enter quantity 10 and rate 1,000. Tally shows ₹10,000.
6. On the next lines, select CGST and SGST. Tally fills 9% each = ₹900 + ₹900.
7. The invoice total becomes ₹11,800.
8. Save with Ctrl + A.

Step by step: interstate GST sale

Same sale, but the customer is in another state:

1. Follow the same steps, but on the tax line select IGST instead of CGST/SGST.
2. Tally fills 18% IGST = ₹1,800.
3. Invoice total is again ₹11,800.

Tally decides CGST/SGST vs IGST from the buyer's state, so if your ledgers and states are set correctly it guides you to the right one.

The debit/credit behind it

For the intrastate example, the entry is:

The customer owes the full ₹11,800; sales income is ₹10,000; the ₹1,800 tax sits in the GST ledgers until you pay it to the government.

Worked example (a real invoice)

You sell a laptop at ₹40,000, 18% GST, to a customer in your state:

• Sales: ₹40,000
• CGST 9%: ₹3,600
• SGST 9%: ₹3,600
• Invoice total: ₹47,200

Print it with Alt + P and you have a valid GST tax invoice.

Pro tips

• Make sure the customer ledger has their GSTIN entered, so the invoice is a proper B2B tax invoice.
• Use invoice mode (with stock items) so the GST rate flows from the item automatically.
• If tax doesn't appear, check the item's GST rate and that you selected the correct CGST/SGST or IGST ledger.

Common mistakes

• Choosing CGST/SGST for an interstate sale. Use IGST when the buyer is in another state.
• No rate on the item. If the stock item has no GST rate, Tally can't calculate the tax.
• Missing customer GSTIN. For B2B sales, the buyer's GSTIN should be on the invoice.
• Manually typing tax amounts. Let Tally calculate; manual figures often don't match and cause return mismatches.

Key takeaways

• Sales voucher (F8) ▸ party ▸ Sales ledger ▸ item ▸ GST ledgers.
• CGST + SGST for same state; IGST for interstate.
• Tally calculates tax from the item's GST rate.
• The customer is debited the full invoice; tax sits in the GST ledgers.

Practice task

In your practice company, pass a GST sales invoice for 5 units of an item at ₹500 each at 18% GST, once to a customer in your state (CGST+SGST) and once to a customer in another state (IGST). Compare the two invoices.

Pass real GST invoices and file returns with a trainer in the ADFA program at HCI.