How to Create GST Tax Ledgers in TallyPrime: 5 Easy Steps

Jan 27, 2024

—

by

Rishit Shah

in Beginner, GST in Tally

Here’s a guide on how to create GST tax ledgers in TallyPrime:

Table of Contents

1. Accessing the Ledger Creation Menu:

Go to Gateway of Tally.
Select Create/Alter > Master > Ledger.

2. Specifying Ledger Type:

In the Under field, choose Duties & Taxes.
Select GST as the Type of duty/tax.

3. Choosing the Tax Type:

Depending on your specific needs, choose the relevant tax type from the following options:

1. Central Tax (CGST):

When your business operates within the same state as the supplier.

2. State Tax (SGST):

Applicable for intra-state purchases or sales when your business and the supplier are in the same state.

3. Union Territory Tax (UTGST):

For purchases or sales within a union territory.

4. Integrated Tax (IGST):

Used for inter-state transactions between different states or union territories.

5. Cess:

If applicable, create separate cess ledgers for quantity and value.

4. Entering Ledger Details:

Provide a descriptive Ledger Name that clearly identifies the tax type.
You can set an Alias for shorter references.
Select the appropriate Group (e.g., Indirect Taxes) where you want to categorize the ledger.
Optionally, you can set the Opening Balance to reflect any tax liabilities or credits you had before creating the ledger.

5. Saving the Ledger:

Once you’ve entered all the required details, press Enter to save the GST tax ledger.

Additional Notes while Creating GST Tax Ledgers in TallyPrime:

Repeat steps 3-5 to create ledgers for all relevant GST tax types your business encounters.
Ensure consistency in naming and grouping your tax ledgers for better organization and easier tracking.
If you already have existing tax ledgers in your TallyPrime company, avoid altering them directly, as it can impact historical data and reports.

Instead, create new ledgers with appropriate names and carry forward any balances in the previous year through journal entries.

By following these steps, you can successfully create the necessary GST tax ledgers in TallyPrime for accurate recording and reporting of your tax liabilities and credits.

Remember to consult a qualified accountant or tax expert for guidance specific to your business and ensure compliance with current GST regulations.