Tally for GST — Enabling GST in TallyPrime, Company and Ledger Configuration, HSN and Rate Masters After GST 2.0, Sales, Purchase, Reverse-Charge, Advance and Credit-Note Entries, E-Invoice and E-Way Bill From Tally, GSTR-1/3B/2B Reconciliation and Export, and Upgrading From Tally ERP 9
F11
Company features in TallyPrime — the switch that enables GST, e-invoicing and e-way bill
HSN / SAC
Set at stock-item / ledger / group / company level; 4 or 6 digits by turnover
IRN
E-invoices generated from the sales voucher for turnover ≥ ₹5 crore; e-way bill from the same screen
GSTR-1 · 3B · 2B
Tally's return reports mirror the portal tables and export JSON for upload
Guide by BookMyCA's Chartered Accountants · pan-India serviceLast verified against official guidelines on 7 September 2026.
Video Explanation & Insights
How to enable the GST feature in Tally (the 2017 set-up walkthrough)
4 videos on this topic
Enabling GST in the company
- 1Gateway of Tally → F11 (Features) → set 'Enable Goods and Services Tax (GST)' to Yes; fill the GST details screen: state, registration type (Regular / Composition / SEZ), GSTIN, applicable from date, periodicity of GSTR-1 (monthly or quarterly/QRMP), e-invoicing applicable (Yes for turnover ≥ ₹5 crore, with the applicable date), e-way bill applicable and the threshold (₹50,000 default; state-specific intra-state limits can be set).
- 2Set the HSN/SAC and tax-rate details at the most efficient level: company level for a single-rate business, stock group / stock item level for traders and manufacturers, ledger level for services (SAC). TallyPrime's 'GST Rate Setup' lists items with missing or conflicting rates.
- 3Create the tax ledgers under Duties & Taxes with type GST and the tax type set: CGST, SGST/UTGST, IGST, Cess (if any); one ledger each is enough — Tally posts by transaction type.
- 4Party ledgers (Sundry Debtors / Creditors): registration type (regular, composition, unregistered, consumer, SEZ, overseas), GSTIN, state and place of supply; 'Is reverse charge applicable' is set on expense/purchase ledgers, not on parties.
- 5Sales and purchase ledgers: GST applicable Yes, type of supply (goods/services), and — for purchases from GTA, advocates, unregistered landlords — 'Is reverse charge applicable: Yes' so the liability journal picks them up.
- 6Voucher numbering: a unique invoice series per financial year (max 16 characters; letters, digits, '-' and '/') — the same series the e-invoice and GSTR-1 will carry; separate series for credit notes, debit notes and delivery challans.
After 22 September 2025 review every rate master: items at 12% or 28% must be re-set to 5%/18% (or 40% for the de-merit list) with effect from that date, using 'Applicable from' so historical vouchers keep the old rate. Tally's rate history handles the cut-over correctly if you set the date rather than overwrite.
The everyday entries
| Transaction | Voucher and what to set | GST effect |
|---|---|---|
| B2B sale within the state | Sales voucher → party (regular GSTIN) → item with HSN and rate → CGST + SGST auto-calculated; place of supply = party state | GSTR-1 Table 4 (B2B); e-invoice IRN if applicable |
| Inter-state sale / export | Party in another state or overseas → IGST (or 0% under LUT with 'Export – LUT/Bond' nature); shipping bill details on the voucher for exports | GSTR-1 Table 4/6A; refund trail |
| B2C sale (retail) | Party = cash/consumer; invoice value ≥ ₹1 lakh inter-state becomes B2CL | GSTR-1 Tables 5/7 |
| Purchase with credit | Purchase voucher → supplier GSTIN → item/ledger with rate → input CGST/SGST/IGST | GSTR-3B Table 4(A)(5); matched to GSTR-2B |
| Reverse-charge purchase (freight from GTA, rent from unregistered landlord, advocate, import of services) | Purchase voucher with the expense ledger marked 'reverse charge applicable' → tax not charged by supplier; then Journal → Stat Adjustment → 'Increase of Tax Liability & Input Tax Credit' → debit input tax ledgers, credit output tax (RCM) ledgers; import of services uses IGST | GSTR-3B 3.1(d) liability paid in cash and 4(A)(3) credit the same month |
| Advance received | Receipt voucher → 'Advance receipt' with GST; on invoice, adjust the advance | GSTR-1 Table 11 (advances) and adjustment |
| Sales return / price reduction | Credit note (voucher type Credit Note) referring to the original invoice number and date | GSTR-1 Table 9B; supplier's liability reduces when the buyer accepts in IMS |
| Purchase return | Debit note to the supplier | Credit reversal in 3B Table 4(B) |
| Stock transfer to own branch (other state) | Sales/delivery to the branch GSTIN at value under rule 28 | IGST; e-way bill |
| Job work despatch | Delivery challan (not a sale) with 'Job work' nature | ITC-04; e-way bill |
| Composition dealer purchases | Purchase without tax; 'Bill of supply' | No credit |
| Ineligible credit (car, food, construction) | Purchase with 'GST ineligible' set on the ledger | Shown in 3B 4(D) not 4(A) |
Generating IRNs and e-way bills from Tally
- 1Register on the IRP (einvoice1.gst.gov.in) and create API credentials for 'Tally (India) Pvt Ltd' as the GSP; in TallyPrime enable e-invoicing under F11 with the applicable date.
- 2On saving a B2B sales voucher (or credit/debit note) Tally prompts to generate the IRN online — it validates the party GSTIN, HSN, rate and totals against the IRP schema; the QR code and IRN print on the invoice.
- 3E-way bill: in the same flow, enter Part A (dispatch and ship-to addresses, distance) and Part B (transporter ID or vehicle number); Tally generates the EWB number; update Part B or extend validity from the report.
- 4Bulk: 'Exchange → Send for e-Invoicing' generates IRNs for pending vouchers; cancel within 24 hours from the same menu; the e-invoice report lists pending, generated, cancelled and rejected vouchers with the IRP error text.
- 5Offline: export the e-invoice JSON for upload on the IRP's bulk tool if the API is not configured.
Reconciling and exporting the returns
- •GSTR-1 report (Display → Statutory Reports → GST → GSTR-1): vouchers are grouped into the portal's tables; 'Uncertain transactions' lists vouchers with missing GSTIN, HSN or rate — fix them before export; HSN summary (Table 12) is built from stock-item HSNs, so items without HSN break the table.
- •Export GSTR-1 as JSON and upload on the portal (or push through the connected-GSP route); compare the portal's summary with Tally's before filing — invoice count, taxable value and tax by rate.
- •GSTR-2B reconciliation: download the 2B JSON/Excel from the portal and import it into Tally's 'GSTR-2B reconciliation' — it matches supplier invoices to Tally's purchases (matched, mismatched, available only in portal, available only in books) and marks the credit to claim; act on the IMS on the portal for rejections.
- •GSTR-3B report: Tally computes Tables 3.1, 3.2, 4 and 5 from vouchers and the RCM journals; the outward figures must equal the GSTR-1 filed (the portal locks them); reversals under rules 42/43 are entered through the stat adjustment journal.
- •Payment: record the challan (PMT-06) as a payment voucher to the tax ledgers with the CIN; the set-off (IGST → CGST/SGST order) is recorded with a journal to mirror the portal's ledger.
- •Audit trail: TallyPrime's edit log (mandatory for companies under the Companies (Accounts) Rules) keeps the history of altered vouchers — auditors and officers ask for it.
Moving from Tally ERP 9 to TallyPrime
- 1Back up the ERP 9 data folder (the whole 'Data' directory, not just one company); note the licence (single/multi-user) and the TSS status.
- 2Install TallyPrime (same licence migrates), open the company from the old data path — TallyPrime migrates the data to its format automatically and keeps a copy of the old one.
- 3Run 'GST Rate Setup' and the 'Uncertain transactions' check after migration: old GST classifications and HSN masters usually need one pass; e-invoicing and e-way features are configured afresh.
- 4Verify opening balances, the trial balance and a sample of vouchers against ERP 9 before filing the first return from the new version.
- 5Keep TSS current for GST return updates — the return formats (GSTR-1 tables, 3B Table 4 structure, IMS) change and the update comes through TSS releases.
Tally on the cloud, or accessed remotely, needs the same masters; the choice of software does not change the law — the rate, the HSN and the time of supply are yours to get right in any tool.
Tally and GST: questions we are asked
For goods, on the stock item (or stock group); for services, on the sales/purchase ledger with the SAC; company-level only if everything carries one rate.
Purchase voucher with the freight expense ledger marked 'reverse charge applicable' (no tax on the bill), then the stat-adjustment journal to raise the output liability and take the input credit; pay the RCM through the cash ledger.
Vouchers missing a GSTIN, HSN, rate or place of supply — Tally will not export them; fix each and re-run the report.
No — IRN applies to B2B, exports and SEZ supplies; B2C invoices need only the dynamic QR code for turnover above ₹500 crore.
The portal's, because it is locked to the GSTR-1 you filed; find the voucher that differs (usually a late or amended invoice) and correct it through GSTR-1A or the next GSTR-1.
Yes — masters, rate migration to GST 2.0, RCM configuration, e-invoice/e-way integration, monthly 2B reconciliation and return filing from Tally.