GST Invoice Entry

GST invoice entry in Tally is a crucial process for businesses to record and manage transactions that involve Goods and Services Tax. Tally, being one of the most widely used accounting software in India, offers an efficient and simple way to create GST-compliant invoices. Whether you’re a small business owner, accountant, or student, learning how to make GST invoice entries in Tally is a key skill in the modern financial environment.

What is GST

GST, or Goods and Services Tax, is an indirect tax levied on the supply of goods and services in India. It is a comprehensive, destination-based tax that has replaced multiple indirect taxes like VAT, service tax, and excise duty. GST is divided into three categories:

• CGST – Central Goods and Services Tax
• SGST – State Goods and Services Tax
• IGST – Integrated Goods and Services Tax (for inter-state transactions)

All businesses with GST registration must issue invoices that comply with GST rules and maintain proper records for filing returns.

Steps to GST Invoice Entry

Below are the steps to create a GST invoice entry in Tally Prime:

Enable GST in Tally

• Open Tally and go to F11: Features > Statutory & Taxation.
• Set Enable Goods and Services Tax (GST) to Yes.
• Enter GST details such as GSTIN, state, and registration type.

Create GST Ledgers

• Sales Ledger: Under Sales Accounts, enable GST and select the appropriate tax rate.
• Customer Ledger: Under Sundry Debtors, set GST registration type and enter the customer’s GSTIN if applicable.
• Tax Ledgers: Create ledgers for CGST, SGST, and IGST under Duties & Taxes, selecting type of duty/tax as GST.

Create Stock Items

• Go to Inventory Info > Stock Items > Create.
• Enter item name, unit, and GST rate under Tax rate setup.

Record a GST Sales Invoice

• Go to Voucher Entry > F8: Sales.
• Select the Party Name (Customer).
• Select the Sales Ledger and enter stock item details (name, quantity, rate, etc.).
• Automatically, GST ledgers (CGST/SGST or IGST) will be applied based on the transaction type (intra-state or inter-state).
• Save the voucher using Ctrl+A.

View and Print GST Invoice

• After saving, you can preview the invoice by pressing Alt+P.
• Select Print Preview to see the invoice format and print it if required.

By following these steps, you can successfully create GST-compliant sales invoices in Tally. This helps in maintaining accurate tax records and ensures smooth filing of GST returns.