Introduction
Tally is one of the most widely used accounting software, especially for small and medium businesses in India. With the introduction of the Goods and Services Tax (GST), managing taxation and compliance has become crucial. Tally Prime (previously Tally ERP 9) offers a seamless way to handle GST calculations, invoicing, returns, and tax reports.

If you’re a beginner looking to learn Tally GST, this step-by-step guide will help you understand how to set up, record transactions, and generate GST reports in Tally Prime.

What is Tally GST?
Tally GST is a feature within Tally Prime that allows businesses to:
✅ Create GST-compliant invoices.
✅ Maintain accurate tax records.
✅ File GST returns effortlessly.
✅ Automate tax calculations and reporting.

Since GST is a multi-tier tax system, understanding how to manage CGST, SGST, IGST, and UTGST in Tally is essential. Let’s explore how to enable and use GST in Tally step by step.

Why Should You Learn Tally GST?
📌 For Business Owners: Helps in accurate bookkeeping and GST compliance.
📌 For Accountants & Finance Professionals: Increases job opportunities and efficiency.
📌 For Students & Freshers: Adds value to your resume and career prospects.
📌 For Freelancers: Allows you to offer accounting and taxation services.

With businesses shifting towards digital invoicing and GST compliance, Tally GST knowledge is in high demand.

Step-by-Step Guide to Learning Tally GST
Step 1: Install & Set Up Tally Prime
Before starting with GST, you need to install Tally Prime on your system:

1️⃣ Download Tally Prime from www.tallysolutions.com
2️⃣ Install and Activate the software using a valid license or free trial.
3️⃣ Create a New Company:

Open Tally Prime and select Create Company
Enter Company Name, Address, and Financial Year
Enable GST Details during setup
🔹 Tip: Always ensure the financial year is set correctly to avoid discrepancies in reports.

Step 2: Enable GST in Tally
Once your company is created, the next step is to enable GST:

1️⃣ Press F11 (Features) → Statutory & Taxation
2️⃣ Enable Goods & Services Tax (GST): Yes
3️⃣ Enter your business’s GST details:

GST Registration Type (Regular/Composition)
GSTIN (15-digit identification number)
State for tax applicability
Tax rate slabs for your products/services
🔹 Tip: Ensure the correct GSTIN is entered to avoid filing errors.

Step 3: Create Ledgers for GST Transactions
To record GST transactions, you must create ledgers:

  1. GST Tax Ledgers (CGST, SGST, IGST)
    📌 Go to Gateway of Tally → Accounts Info → Ledgers → Create
    📌 Create three separate ledgers for:
    ✅ CGST – Under Duties & Taxes with GST type Central Tax
    ✅ SGST – Under Duties & Taxes with GST type State Tax
    ✅ IGST – Under Duties & Taxes with GST type Integrated Tax
  2. Customer & Supplier Ledgers
    📌 Create a ledger for each customer and supplier under Sundry Debtors/Sundry Creditors
    📌 Enter their GSTIN and State (Important for interstate & intrastate tax calculations)
  3. Sales & Purchase Ledgers
    📌 Create a Sales Ledger for GST sales transactions.
    📌 Create a Purchase Ledger for GST purchase transactions.

🔹 Tip: If you deal with multiple GST rates, create different sales and purchase ledgers for each rate (e.g., 5%, 12%, 18%).

Step 4: Record GST Transactions in Tally

  1. Recording GST Sales Entry
    When selling goods/services, follow these steps:

📌 Go to Accounting Vouchers → F8 (Sales)
📌 Select the correct Sales Ledger (GST @18%)
📌 Choose the Customer Ledger
📌 Add Items with GST tax details
📌 Apply CGST & SGST (Intrastate) or IGST (Interstate)
📌 Save the invoice

🔹 Example: If you sell ₹10,000 worth of goods to a customer in the same state with 18% GST, Tally will calculate:

CGST (9%) = ₹900
SGST (9%) = ₹900
Total Invoice = ₹11,800

  1. Recording GST Purchase Entry
    📌 Go to Accounting Vouchers → F9 (Purchase)
    📌 Select the correct Purchase Ledger
    📌 Choose the Supplier Ledger
    📌 Add Items and GST tax components
    📌 Save the entry

🔹 Example: If you purchase raw materials worth ₹20,000 from an interstate supplier at 12% GST, Tally will calculate:

IGST (12%) = ₹2,400
Total Payable = ₹22,400
Step 5: Generate GST Reports in Tally
Tally makes it easy to generate GST reports for compliance:

📌 Go to Gateway of Tally → Display → Statutory Reports → GST Reports
📌 Select the desired report type:
✅ GSTR-1 (Outward supplies for sales transactions)
✅ GSTR-2A (Auto-populated purchases from suppliers)
✅ GSTR-3B (Monthly summary return)

🔹 Tip: Regularly check reports to ensure accuracy before filing.

Step 6: File GST Returns Using Tally
Once you have generated GST reports, you can file returns:

📌 Export GST reports in JSON format
📌 Upload the file to the GST portal (www.gst.gov.in)
📌 Verify the details and submit the return

🔹 Tip: Always cross-check ITC (Input Tax Credit) before filing returns to avoid tax mismatches.

Common Mistakes to Avoid in Tally GST
🚫 Entering an incorrect GSTIN for customers/suppliers
🚫 Not categorizing transactions correctly as intra-state or inter-state
🚫 Forgetting to enable GST in company settings
🚫 Not updating Tally to the latest version (for new GST rules)