How to create GST Taxation Ledgers in Tally – Step by Step

As we all know there are four types of taxes in GSTregime. They are CGST(Central GST) & SGST(State GST) for intrastate sale or local sale.IGST ( Integrated GST) for interstate sale and UGST for sale in union terittory. In this tutorials we will learn how to create all these GST tax ledgers in tally erp 9.

  • From Gateway of Tally, go to Accounts Info.
  • Select Ledgers
  • Select Create under Single Ledger. Now the real fun starts.


How to create Input CGST Ledger in Tally

Take a look at the picture above because that is exactly, how you will need to create the Input CGST Ledger in Tally.

  • The name will be Input CGST as it is input tax which we pay when we purchase goods or services attracting GST.
  • As I said, it will be under Duties and Taxes.
  • Now, in Type of Duty/tax option, select GST.
  • For Tax type, select Central Tax for now.
    • You have to select State Tax for SGST and Integrated Tax for IGST and Cess for Cess.

  • The option Inventory Values are affected will be set to No because it has no use for this ledger.
  • Percentage of calculation should be set to 0%. It is because Tally takes the percentages from your configuration or the stock items or the classification.
    This is crucial to know because if you set the percentage here you will not get the amount automatically calculated while creating an entry which includes GST.
  • Rounding method that I have selected is Normal Rounding. However, you can select the method as per your choice.
  • Rounding limit is set to zero. Again, it is my choice. You can select a different number.
  • Now, just press Enter till you save the ledger.
  • Congo! You have created a GST ledger, specifically an Input CGST ledger in Tally.

You can easily create all the GST Ledgers as in the list above by following this method.

Just change the name, the Tax Type and you are done with creating all the ledgers. Repeat the same method and in no time you will have all the six ledgers required for passing the GST accounting entries in Tally.

Now that you have created all the GST tax ledgers, we need to make sure that certain other ledgers are configured for GST applicability otherwise they won’t work as required.

Those ledgers are important for passing GST Accounting Entries in Tally. They are:

  • Sales and Purchases Ledger
  • Stock Items Ledger
  • Sundry Debtor and Sundry Creditors Ledger

We need to configure these ledgers so as to make them GST enabled in Tally. Here is how you can do it, Click here.

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