Step by Step – How to Enable and Set GST Details in Tally

This post is about how you can Enable and Set GST (Goods and Services Tax) Details in Tally.

To use GST in Tally, you have to upgrade your Tally to the latest version 6.0  functionality in Tally, you have to set the GST details in Tally.

And, for setting the GST details, you need to Enable GST in Tally. Do not worry, it is very easy to enable and set GST details in Tally.

So, here is the step by step to enable GST Details in Tally.

Before we start, make sure you have upgraded your Tally to the latest version.

Moving ahead, I am assuming you have upgraded your Tally with the latest version which includes the GST functionality and therefore we will now see how you can enable Goods & Service Tax in Tally.

  1. From Gateway of Tally, go to Features by pressing F11 and you will see a menu as in the picture below.

    Company Features Menu in Tally

  2. Go to Statutory & Taxation and you will see a screen which is called Company Operations Alteration.

    Company Operations Alteration Screen in Tally

    See name of the screen – Company Operations Alteration on the top left-hand corner in above image.

  3. You will be able to two options.
    • Enable Goods and Services Tax (GST)
    • Set/alter GST details
  4. First, we will enable GST in Tally and then we will Set the GST Details.
  5. Well, enabling is pretty easy.
  6. Press Y in the option Enable Goods and Services Tax (GST) and press Enter.
  7. DONE. You have enabled GST (Goods and Services) Tax in Tally.

This was just a simple step but without it you would not be able to go ahead and set the GST details in Tally.

Enabling the GST in Tally will activate all the functions of GST in Tally. This includes GST functions in ledgers, reports, returns and more.

You may think it is just a small step, but trust me it is a big step which affects the whole functioning of Tally.

Now, you will see GST option in almost every place in Tally which previously was not available.

We will now see How to set and alter GST details in Tally.

You will need the following to set GST Details in Tally.

  • a valid GSTIN – Goods and Services Tax Identification Number
  • Rate of GST – for example – 28% IGST divided into 14% CGST and 14% SGST
  • HSN Code – Harmonized System Nomenclature which is different according to the product or service you sell.

You will have all the details if you have registered for GST on the GST Portal.

If you do not have any of the above details, it is perfectly okay. You can simply go through this post to know the method to set GST details in Tally.

In fact, I will be using fake GSTIN and fake HSN for the explanation of this post.

After GST is Enabled, you will land to Company Operations Alteration screen.

  • Press Y against the Set/alter GST details option and press Enter.
  • You will see the Company GST Details screen as shown in the image below.

sample figures for Blog purpose. Here GST number to be added

  • First option is State – Choose your State or the state in which the business is located.
  • Second option is Registration type – Regular
  • GSTIN/UIN – Enter the GSTIN or UIN. It will be printed on the invoices later when you create ledgers related to GST in Tally.
  • Applicable from – This is date from which GST is applicable to you. Most probably it will be 1st July, 2017.
  • Set/alter GST rate details – This is where you will enter the rates of GST according to the product you are selling.
  • Press Y and press Enter to enter the rates and HSN details as in the picture below.

    GST Tax Rate Details in Tally

     

    • Write the Description about the goods or services you sell on the basis of your HSN Number.
    • Enter HSN Number.
    • In Tax Details, there are 3 options.
      • Exempt
      • Nil Rated
      • Taxable
    • select Taxable option because goods or services are taxable under the GST.
    • Then select Integrated Tax under Tax Type. Tally calculates both the Central and State Taxes exactly half for each of them.
      So when you enter 28% Integrated Tax, it will be divided into 14% for CGST and 14% for SGST automatically.
      You can also enable Central and State Tax option if you want to see columns for both of them instead of one integrated tax column. Here is how you can do it.
      • Press F12 while remaining on the same screen which opens up a Configuration menu.

        GST Rate Configuration in Tally

        • Select the last option Show all GST tax types to Yes and press Enter and now you will see Central and State Tax option too as in the picture below.

          GST Details with Central and State Taxes in Tally

          • You can see different options for Central and State Taxes along with Integrated Tax option.
          • Enter the Cess percentage if your goods or services have cess applicable to it.
          • Press Enter.
        • Now you will be out at the Company GST Details screen from where we started.
        • Next option is Enable GST Classifications. Leave it to No for now because it is an advanced topic which will take another post for me to explain. It will not affect your entries with GST in anyway as it is an additional option which I will explain later.
        • Last option is Provide LUT/Bond Details – If you have signed a Bond or a letter of undertaking (LUT) with the GST Department, you can provide the details about it as shown in the picture below.

          LUT-Bond Details in Tally

          • You will have to enter LUT or Bond number and the Validity i.e. from a date to the date till the LUT or Bond is valid.
        • Finally Press Enter and you will come at Company Operations Alteration – right from where we started.
        • Now, press CTRL+A to save all the details which we have entered.
        • Congratulations! You have successfully set GST details in Tally.

2 Comments

  1. Janardan Gupta

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