GST Rate & HSN/SAC Details in Stock Item in TallyPrime: 4 Steps

Applying GST rates and HSN/SAC (Harmonized System of Nomenclature/Service Accounting Code) details to individual Stock Items in TallyPrime is crucial for businesses that handle diverse goods or services with varying GST rates.

This setup allows accurate calculation and compliance with GST regulations.

Table of Contents

1. Why Apply GST Rates and HSN/SAC to Stock Items in TallyPrime?

Precise Tax Calculation: Ensures item-specific GST rates and codes are applied during transactions.
Compliance: Helps in meeting legal requirements for invoices and returns.
Flexibility: Useful for businesses dealing with stock items of different tax rates.

2. Steps to Apply GST Rate and HSN/SAC Details in Stock Items in TallyPrime

1. Enable GST in TallyPrime

Go to Gateway of Tally > Features (F11) > Statutory & Taxation.
Enable GST.
Provide your company’s GST details such as GSTIN and applicable state.

2. Open or Create a Stock Item

Navigate to Gateway of Tally > Inventory Info > Stock Items.
Select an existing stock item or create a new one.

3. Configure GST Details

In the stock item creation/alteration screen, enable Set/Alter GST Details.
Fill in the following fields:
- Nature of Goods: Choose the category of goods (e.g., Raw Material, Trading Goods, etc.).
- Taxability: Select Taxable, Exempt, or Nil-Rated.
- GST Rates: Enter the applicable GST rates (e.g., CGST, SGST, IGST).
- HSN Code: Specify the HSN code for the item.

4. Save the Stock Item

Save the configuration to apply these details to the stock item.

3. Example of GST Rate & HSN/SAC Details in Stock Item in TallyPrime

Scenario:
A business sells LED lights. Each LED light attracts 12% GST (6% CGST + 6% SGST) and has an HSN code of 9405.

Steps:

Create a stock item named LED Light in Gateway of Tally > Inventory Info > Stock Items > Create.
Enable Set/Alter GST Details.
Configure the GST details:
- Nature of Goods: Trading Goods.
- Taxability: Taxable.
- HSN Code: 9405.
- GST Rates: 6% CGST, 6% SGST.
Save the stock item.

4. Record a Sales Entry of Applying GST to Stock Items in TallyPrime

Sell 50 LED lights to a customer for ₹500 each.
During the sales entry:
- Select the stock item LED Light.
- TallyPrime automatically applies the 12% GST rate and includes the HSN code on the invoice.
The system calculates the GST as ₹3,000 (₹25,000 * 12%).

5. Benefits of Applying GST to Stock Items in TallyPrime

Accuracy: Ensures correct GST rates are applied during transactions.
Automation: Automatically includes tax details in invoices and reports.
Compliance: Meets statutory requirements, especially for filings like GSTR-1 and GSTR-3B.
Simplified Reporting: GST-related reports like GST Computation and HSN/SAC Summary become more precise.

6. Conclusion

Setting GST rates and HSN/SAC details at the stock item level is a vital feature in TallyPrime.

It ensures compliance, simplifies tax calculation, and streamlines reporting processes.

Businesses can use this setup to efficiently manage diverse stock items, reduce manual errors, and focus on operations without worrying about tax intricacies.