Goods and Service tax is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
GST will be levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services. It is introduced as The Constitution Act 2017, is launching from 1 July 2017 midnight. Goods and services will be taxed at the following rates, 0%, 5%, 12%, 18%, 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. The goods on which GST is not applicable referred as GST exempt.
The proposed tax system will take the form of "Dual GST" which is concurrently levied by central and state government. This will comprise of:
* Central GST (CGST) which will be levied by Centre
* State GST (SGST) Which will be levied by State
* Integrated GST (IGST) - which will be levied by Central Government on inter-State supply of goods and services.
At the Central level, the following taxes are being subsumed:
1. Central Excise Duty,
2. Additional Excise Duty,
3. Service Tax,
4. Additional Customs Duty commonly known as Countervailing Duty, and
5. Special Additional Duty of Customs.
At the State level, the following taxes are being subsumed:
1. Subsuming of State Value Added Tax/Sales Tax,
2. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
3. Octroi and Entry tax,
4. Purchase Tax,
5. Luxury tax, and
6. Taxes on lottery, betting and gambling.
What is GST Number ?
All of these businesses will be assigned a unique Goods and Services Tax Identification Number (GSTIN). Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
Here is a format of the GSTIN:
☞ The first two digits represent the state code as per Indian Census 2011. Every state has a unique code.
⚛ State code of Bihar is 10
⚛ State code of Delhi is 07
☞ The next ten digits will be the PAN number of the taxpayer
☞ The thirteenth digit will be assigned based on the number of registration within a state
☞ The fourteenth digit will be Z by default
☞ The last digit will be for check code. It may be an alphabet or a number.
How to apply for GSTIN?
Once the application is approved by the GST officer, a unique GSTIN is allocated to the dealer.
There are two ways to register for GST:
⚛ via GST Online Portal or
⚛ via GST Seva Kendra set up by Government of India
How to use GST in TallyPrime?
1. Run TallyPrime
2. Create Company
Go to Gateway of Tally➾Alt + F3➾ Create Company
3. Enter the basic information, i.e., Name, Mailing Name and Address of the company, for e.g., GST in Tally and other relevant details.
Activation of GST in a company
- Open the company for which you need to activate GST.
- Press F11 (Features) > set Enable Goods and Services Tax (GST) to Yes.
- If you do not see this option:
- Set Show more features to Yes.
- Set Show all features to Yes.
Set Up GST Details for Parties
Ledger Creation of purchase and sales
Under : as Purchase A/c
Inventory values are affected: as Yes
Is GST Applicable : as Applicable
Set/alter GST Details: as No
Type of Supply: as Goods
Press Y or Enter to Accept.
Tax ledger creation
Name : as CGST
Under : as Duties & Taxes
Type of duty/tax: as GST
Tax type: as Central Tax
Set/alter GST Details: as No
Inventory values are affected: as No
Percentage of calculation: as 0%
Press Y or Enter to Accept.
Similarly create the following GST ledgers along with Capital A/c and SBI A/c
| Ledger. | Under Group | Type of duty/tax | Tax type | Op balance |
| SGST | Duties & Taxes | GST | State Tax | 0 |
| IGST | Duties & Taxes | GST | Integrated Tax | 0 |
Ledgers Creation of Sundry Creditors and Debtors
| Ledger. | Under Group | Maintain balances bill-by-bill | Inventroy Values are Affected | State | Set/alter GST details |
| Raj computer | Sundry Creditors | Yes | No | Bihar | Yes |
| Nehru place mall | Sundry Creditors | Yes | No | Delhi | Yes |
| Tyagi Enterprises | Sundry Creditors | Yes | No | Bihar | Yes |
| Tulsi enterprises | Sundry Debtors | Yes | No | Bihar | Yes |
| Binda pvt Ltd. | Sundry Debtors | Yes | No | Bihar | Yes |
| Sugandha enterprises | Sundry Debtors | Yes | No | Jharkhand | Yes |
Go to Gateway of Tally --> Create --> Ledger
⚛ Enter the Name of the Party Ledger e.g. Raj Computer
⚛ Select Sundry Creditors from the List of Groups in the Under field
⚛Set Maintain balances bill-by-bill to Yes
⚛ Enter the Default Credit Period, if required.
⚛Set Inventory values are affected to Yes
⚛Set State as Bihar
⚛ Set/alter GST Details to Yes
After then GST Details screen will appear where fill required information as shown below.
⚛ Enter the Default Credit Period, if required.
⚛Set GSTIN/UIN as 10ASDFG1234N1Z5
⚛Party Type as Not Applicable
⚛ is a e-Commerce operator to No
The completed Ledger creation is displayed as shown
Similarly create rest parties ledger
Stock Creation
Go to Gateway of Tally --> Create --> Stock Item
| Items | Under Group | Unit | Cost Price | Sale Price | Opening Balance | GST Rate |
| Hardisk 1 Tb | Segate | pcs | 3500/- | 4000/- | 10pcs | 18% |
| Redmi Note 4 | MI | pcs | 6500/- | 7500/- | 20pcs | 12% |
| Hp laser Printer | HP | pcs | 10500/- | 12000/- | 5pcs | 18% |
Transaction entries
Q1: Commence business with cash 500000 and bank 200000.
1. Go to Gateway of Tally --> Create --> Ledger
⚛ Create Capital Ledger
Name : as Capital A/c
Under : as Capital A/c
Press Y or Enter to Accept.
⚛ Create Bank Ledger
Name : as SBI A/c
Under : as Bank A/c
Press Y or Enter to Accept.
2. Go to Gateway of Tally --> Vouchers--> F6
Purchase with GST
3. Go to Gateway of Tally --> Vouchers --> F9
Similarly create following Purchase entries
| Date | Party’s Name | Name of Item | Qty | Rate | SGST | CGST | IGST |
| 01.04.2018 | Raj computer | Inspiron 3558 laptop | 5 | 30000/- | 13500 (9%) | 13500 (9%) | - |
| 02.04.2018 | Nehru place mall | Hp laser printer | 20 | 10500/- | - | - | 37800 (18%) |
| 03.04.2018 | Tyagi Enterprises | Redmi Note 4 | 10 | 6500/- | 3900 (6%) | 3900 (6%) | - |
| 04.04.2018 | Raj Computer | Harddisk 1Tb | 15 | 3500/- | 4725 (9%) | 4725 (9%) | - |
Now verify stock summary
Go to Gateway of Tally --> Voucher --> F8
⚛ Press Ctrl+H to change mode (if required)
Similarly create following Sales entries
| Date | Party’s Name | Name of Item | Qty | Rate | SGST | CGST | IGST |
| 01.04.2018 | Tulsi enterprises | Inspiron 3558 laptop | 9 | 32000/- | 25920 (9%) | 25920 (9%) | - |
| 02.04.2018 | Sugandha Enterprises | Hp laser printer | 25 | 12000/- | - | - | 54000 (18%) |
| 03.04.2018 | Tulsi enterprises | Hardisk 1 Tb | 24 | 4000/- | 8640 (9%) | 8640 (9%) | - |
| 04.04.2018 | Binda pvt. Ltd | Redmi Note 4 | 25 | 7500/- | 11250 (6%) | 11250 (6%) | - |
Payment entries
Go to Gateway of Tally --> Accounting voucher --> F5
| Date | Party’s Name | Amount | Cash | Cheque |
| 01.05.2018 | Raj computer | 177000/- | 100000/- | 77000/- |
| 02.05.2018 | Nehru place mall | 247800/- | 200000/- | 47800/- |
| 03.05.2018 | Tyagi Enterprises | 72800/- | 50000/- | 22800/- |
| 04.05.2018 | Raj Computer | 61950/- | 61950/- | - |
Cash/Bank Balance on this stage
Go to Gateway of Tally --> Display --> Account Books --> Cash/Bank Book(s)
Go to Gateway of Tally --> Balance Sheet
All Sundry Creditors --> Nil
Sundry Debtors
Receipt entries
Go to Gateway of Tally --> Accounting voucher --> F6
| Date | Party’s Name | Amount | Cash | Cheque |
| 01.06.2018 | Tulsi enterprises | 3,39,840/- | 300000/- | 39840/- |
| 02.06.2018 | Binda pvt. Ltd | 2,10,000/- | 100000/- | 1,10,000/- |
| 03.05.2018 | Sugandha Enterprises | 3,54,000/- | 200000/- | 154000/- |
| 04.05.2018 | Tulsi enterprises | 1,13,280/- | - | 113280/- |
Balance sheet on this stage
Go to Gateway of Tally --> Balance Sheet
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