To set up GST in TallyPrime, enable GST under Features (F11), enter your GSTIN and state, set the applicable tax rate, and create the CGST, SGST and IGST duty ledgers. After that, Tally automatically works out the right GST on every sales and purchase invoice. Doing this setup once, correctly, saves you from calculating tax by hand ever again.
Do this first: check the state
GST in Tally depends on the company's state being correct, because it decides CGST/SGST vs IGST. If you set the wrong state when creating the company, fix it (Alt+K ▸ Alter) before enabling GST.
Step 1: Enable GST
- From Gateway of Tally, press F11 (Features).
- Find Enable Goods and Services Tax (GST) and set it to Yes.
- In the GST Details screen, enter: - State (auto-filled from the company). - Registration type (Regular for most businesses). - GSTIN/UIN — your 15-digit GST number. - Applicable from date.
- Accept with
Ctrl+A.
Step 2: Set GST rate on items or ledgers
You can set the GST rate at the stock item level (best for shops) or on a sales/purchase ledger. For a stock item:
- Alter the item (Create/Alter ▸ Stock Item).
- Set GST Applicable to Yes and enter the tax rate (e.g. 18%) and HSN code.
- Save.
Tally then applies that rate whenever the item is sold or bought.
Step 3: Create the GST duty ledgers
You need ledgers to hold the tax amounts. Create three, all under the group Duties & Taxes, Type of duty/tax = GST:
| Ledger | Tax type |
|---|---|
| CGST | Central Tax |
| SGST | State Tax |
| IGST | Integrated Tax |
To create each: Gateway of Tally ▸ Create ▸ Ledger ▸ Name "CGST" ▸ Under "Duties & Taxes" ▸ Type of duty/tax "GST" ▸ Tax type "Central Tax" ▸ save. Repeat for SGST and IGST.
What happens after setup
Now when you pass a sales invoice, you pick the party and item, add the CGST + SGST (or IGST) ledgers, and Tally fills in the tax automatically based on the rate and the buyer's state. You've turned Tally into your GST calculator.
Pro tips
- Set the rate at item level if you sell products at different rates; set it at ledger level if everything is one rate.
- Enter HSN codes now, so your GST invoices and returns are complete later.
- Keep one set of CGST/SGST/IGST ledgers; you don't need separate ones per rate.
Common mistakes
- Wrong or missing GSTIN. It must be the exact 15-digit number, or invoices are invalid.
- Forgetting the IGST ledger. Without it, interstate sales can't calculate. Create all three.
- Wrong tax type on a ledger. CGST must be "Central Tax", SGST "State Tax", IGST "Integrated Tax". Mixing these breaks the auto-calculation.
Key takeaways
- Enable GST under F11 and enter your GSTIN and state.
- Set the GST rate on stock items (with HSN) or on ledgers.
- Create CGST, SGST and IGST ledgers under Duties & Taxes.
- After setup, Tally calculates GST on invoices automatically.
Practice task
In your practice company, enable GST with a sample GSTIN, set an 18% rate on one stock item, and create the CGST, SGST and IGST ledgers. You're now ready to pass a GST sales entry.
Set up GST and file returns confidently with a trainer in the ADFA program at HCI.
Frequently Asked Questions
How do I enable GST in TallyPrime?
Press F11 (Features), set Enable GST to Yes, then enter your state, registration type and GSTIN, and save with `Ctrl` + `A`.
How do I create GST ledgers in Tally?
Create three ledgers under Duties & Taxes with Type of duty/tax GST: CGST (Central Tax), SGST (State Tax) and IGST (Integrated Tax).
Where do I set the GST rate in Tally?
You can set it on the stock item (with HSN code) or on a sales/purchase ledger. Item-level is best when you sell products at different rates.
Do I need separate GST ledgers for each rate?
No. One set of CGST, SGST and IGST ledgers works for all rates, because the rate comes from the item or ledger, not the duty ledger.
Why isn't Tally calculating GST on my invoice?
Usually GST isn't enabled, the item/ledger has no rate set, or a GST ledger is missing or has the wrong tax type. Check all three.