How to Configure Stock Items for GST in TallyPrime: 6 Easy Steps

Jan 29, 2024

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Accurately configuring your stock items for GST in Tally Prime is crucial for ensuring smooth tax calculations and reporting.

Here’s a detailed guide to help you:

Table of Contents

1. Enable GST and Set Taxability:

Go to Gateway of Tally > F11: Features.
Set Enable Goods and Services Tax (GST) to Yes.
Navigate to Statutory & Taxation.
Under GST Details, specify your company information like state, GSTIN, registration type, and applicable date.

2. Access the Stock Items Master:

Go to Gateway of Tally > Create/Alter > Master > Stock Items.

3. Configure Individual Stock Items:

Open the desired stock item or create a new one.
Click F12: Configure > Set/alter GST Details.
Choose the Taxability:
- Taxable: For items subject to GST.
- Exempt: For items exempt from GST.
- Nil Rated: For items with a 0% GST rate.
Select the Type of Supply: Goods or Service.

4. Set GST Rates:

Choose F12: Configure > Set/alter GST Rate & Related Details.
In the Tax Rate Setup report, select the stock item(s) you want to configure.
Specify the applicable GST rate:
- CGST: Central Goods and Service Tax.
- SGST/UTGST: State Goods and Service Tax or Union Territory Goods and Service Tax (based on location).
- IGST: Integrated Goods and Service Tax (for inter-state transactions).
You can also choose different rates for different states or union territories.

5. Additional Configurations (Optional):

1. H/S Code Tracking:

If you utilize HSN (Harmonized System of Nomenclature) codes, associate them with the stock item in the HSN/SAC & Related Details section.

2. Reverse Charge Mechanism:

For specific transactions, activate the Reverse Charge Mechanism option.

6. Save and Review:

Press Ctrl+A to save the configuration for each stock item.
Verify the details by opening the stock item again and reviewing the GST Details and GST Rate & Related Details sections.

Always Remember:

Always consult with a qualified accountant or tax advisor for accurate guidance on GST compliance and configuration based on your specific business needs.
Keep Tally Prime updated with the latest GST regulations to ensure your data reflects current requirements.

By following these steps and considering the additional options, you can effectively configure your stock items for GST in Tally Prime, enabling accurate tax calculations and seamless reporting.