If you’ve made a payment for an expense — like legal fees, consulting services, or repair and maintenance — and it includes GST, you can record it using a Payment voucher in TallyPrime.
TallyPrime allows you to select Party Details in the voucher, so GST gets accounted correctly and appears in your returns like GSTR-3B or GSTR-2A reconciliation.
1. Example Scenario: Expense with GST in a Payment Voucher by Selecting Party Details in TallyPrime
You paid ₹11,800 to a consultant (ABC Consulting) for professional services.
This amount includes ₹1,800 GST (i.e., ₹900 CGST and ₹900 SGST on a service value of ₹10,000).
2. Step 1: Create Necessary Ledgers in TallyPrime
1. Consulting Charges (Expense Ledger)
- Go to: Gateway of Tally > Accounts Info > Ledgers > Create
- Name: Consulting Charges
- Under: Indirect Expenses
- GST Applicable: Yes
- Set Nature of Transaction: Purchase Taxable
- GST Rate: 18% (9% CGST + 9% SGST)
2. ABC Consulting (Party Ledger)
- Under: Sundry Creditors
- GST Registration Type: Regular
- Set State and GSTIN
- Applicable for GST: Yes
3. Bank Ledger (if not already created)
- Name: HDFC Bank
- Under: Bank Accounts
3. Step 2: Record Payment Voucher with GST and Party Details in TallyPrime
- Go to: Gateway of Tally > Vouchers > F5 (Payment)
- Press F2 to set the date (e.g., 16-Jul-2025)
- On top, select HDFC Bank as the account from which payment is made
Now enter the transaction as follows:
1. First Line – Expense
- Ledger: Consulting Charges
- Amount: ₹10,000
- Tally will automatically calculate GST on this line
After you enter this, a GST Details window will pop up.
In the Party Details, fill:
- Party Name: ABC Consulting
- GSTIN: Will be picked automatically
- Invoice No.: INV/1001
- Invoice Date: 16-Jul-2025
Press Enter to continue.
2. Next Lines – GST Components (auto populated)
- Input CGST @ 9% – ₹900
- Input SGST @ 9% – ₹900
3. Total Payment: ₹11,800
Tally will automatically calculate and allocate the taxes.
4. Narration:
“Being consulting charges paid to ABC Consulting including GST @ 18%”
5. Press Ctrl + A to save
4. What Happens in the Background while Recording Expense with GST in a Payment Voucher by Selecting Party Details in TallyPrime ?
- The Consulting Charges expense gets recorded under Indirect Expenses.
- Input GST entries are posted under Duties & Taxes.
- Your HDFC Bank account reduces by ₹11,800.
- Party-wise GST details are available for GSTR-2A reconciliation.
- Input tax is claimable.
5. Verify the Expense Entry with GST in TallyPrime
- Go to Display > Day Book to review the transaction.
- Go to Display > Statutory Reports > GST > GSTR-3B — input credit will be shown under ITC Available.
- Go to Balance Sheet > Duties & Taxes — you’ll see Input CGST and Input SGST balances.
6. Benefits of Using Party Details in Payment Voucher in TallyPrime
- GST data is properly captured.
- Easy tracking of vendor-wise purchases.
- Helps in GSTR-2A reconciliation and ITC claim.
- Complete audit trail for both expense and tax.
7. Common Expense Examples You Can Record Like This in TallyPrime
- Professional fees
- Legal consultation
- Repairs and maintenance
- Security services
- Software services
8. Conclusion
Recording an expense with GST in a payment voucher in TallyPrime is simple if you create the correct ledgers and select party details carefully.
This ensures that your tax credit is properly captured and reflected in GST returns.
Let me know if you want a custom voucher template or help setting up recurring expense automation.
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