How to Activate GST in Tally.ERP9
Activate GST in Tally.ERP9 GST Computation plays a very crucial role in any business to know its exact GST payable amount. It is equally important to the Tax Authorities to collect the right amount of GST. So Tally.ERP9 facilitates the same by calculating the GST amount transaction by transaction. There by calculating the GST Payable , Input Tax Credit and net GST payable to Tax Authorities, be it CGST, SGST or IGST etc. In order to use Tally.ERP 9 for GST compliances, you need to enable the GST feature. Once GST is activated, GST-related features are available in ledgers, stock items, and transactions, and also GST returns can be generated.
How To activate GST for a Company
- To activate GST Features in Tally.ERP 9 , First open the company for which GST is to be activated.
- Press F11> F3.
- Enable Goods and Services Tax (GST) – Yes.
- Set/alter GST details – Yes. The following GST details window will appear.
- State: State code is a two digit number. Suppose State code for Himachal Pradesh is 02. It displays the state you have selected for your company. Helps in identifying local and interstate transactions. If there is any change in the the state, it will be get reflected in the company details.
- Specify the GSTIN/UINfor the business. GSTIN is an alphanumeric code having length of 15. The first 2 digits are state code, 10 alphanumeric alphabets which is actually the Permanent Account Number(PAN) of the Business Owner and followed by 3 alphanumeric check digits. This GSTIN/UIN is available for printing in invoices and it can be specified later.
- Specify Applicable from date. The applicable date specifies the date from which GST will be applicable for all the transactions of the company.
Note: You can record transactions using the ledgers with GST details, and print invoices with GSTIN.
Creating GST Ledgers
There are mainly four ledgers involved for GST Computations
- Central Goods and Services Tax (CGST)– GST applicable on intrastate sale (Central Govt. Component) 50% of total GST Amount
- State Goods and Services Tax (SGST)– GST applicable on intrastate sale (State Govt. Component) 50% of total GST Amount
- Integrated Goods and Services Tax (IGST) – GST applicable on interstate sale (Divided equally between Central and destination State Govt. )
- Union Territory Goods and Services Tax(UTGST) – GST applicable under Union Territory jurisdiction
To Create CGST Ledger go to Gateway of Tally >Accounts Info > Ledgers > Create -Type CGST > Under Duties and Taxes > Type of Duties/Tax – GST > Tax Type – Central Tax > Rounding Details and Apply
Similarly create SGST under Tax Type- State Tax and IGST under Tax Type- Integrated Tax.
Common Ledger in Tally.ERP9
Tally.ERP9 gives a very flexible approach to create ledgers. To distinguish we can create GST paid ledger as Input GST and GST Received as Output GST, which segregates both GSTs hence making us easy to calculate the net GST payable to the Tax Authorities. In this case we need to calculate the net GST by subtracting the both. Another option for the same is to use common ledger. In common ledgers for both Input GST and Output GST (for eg instead of input CGST and output CGST we will use a common ledger CGST only)
The advantage of this approach is that you do’nt need to calculate the net GST payable or Input Tax Credit. It automatically computes the GST and respective ledger balance is either Debit balance or Credit balance. Let us suppose if CGST ledger has Credit balance (if Credit side balance of CGST is more than debit side) then that amount is CGST payable. On the other hand if it is debit balance then we can either claim ITC or refund of the excess taxes paid. To create CGST ledger go to
Creating Purchase Ledger with GST
To create Purchase Ledger go to Gateway of Tally > Accounts Info > Ledgers > create > Purchase A/C under group Purchase A/C , Inventory value affected – Yes, Under Statutory Info – GST Applicable –Yes , Set Alter GST details to Yes (if you want to alter it), Select type of supply to Goods or Services (as per your requirement) – Accept.
Creating a Purchase Voucher
Gateway of Tally > Transactions > Accounting Vouchers >Press F9 key to select Purchase voucher.
Enter Suppliers Invoice No > Date > Select Party A/c Name > select Purchase Ledger > Items > Quantity > Rate -Amount will be calculated automatically.
Press Enter key twice, spacebar to select CGST – tax amount will be calculated automatically, similarly select SGST and accept the entry after entering narration. The screen similar to show below will appear.
Creating a Sales Voucher with GST
Gateway of Tally > Transactions > Accounting Vouchers >Press F8 key to select Sales voucher.
Enter reference No, Party A/c Name, Sales Ledger, Items, Quantity, Rate -Amount will be calculated automatically.
Press enter twice, space bar to select CGST – tax amount will be calculated automatically, similarly select SGST and accept the entry after entering narration.
To see the tax analysis in Sales/Purchase vouchers, Press Alt+A on the respective voucher screen. Press Alt+F1 to see more detailed info. The screen will show the tax/analysis screen with rate of GST, CGST and SGST tax values as shown in the screen.
To go back to the original voucher entry press ESC key and press CTRL+A to Accept the voucher. Alternatively the Tax Analysis screen can also be got by going to the Gateway of Tally Screen > display > Day book > select any sales / purchase voucher and then press the Alt+A to see Tax Analysis Screen and Alt+F1 to see the detailed Tax amount.
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PS: Tally.ERP9 is a comprehensive software by Tally Solutions, Simple easy to use, It is best suited for Accounting, Inventory and Payroll management and fully complaint with Goods and Services Tax.
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