Specify GST Rate Details for Masters in TallyPrime: 5 Easy Steps

Setting up GST rate details correctly in TallyPrime ensures accurate tax calculations for sales and purchase transactions.

You can specify GST rate details at different levels, such as Stock Items, Stock Groups, Accounting Groups, Sales/Purchase Ledgers, and GST Classifications.

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1. Why Specify GST Rate Details in TallyPrime?

• Ensures automatic tax calculations while recording transactions.
• Reduces errors in GST return filings (GSTR-1, GSTR-3B, and Annual Return).
• Helps in compliance with GST regulations.
• Saves time by applying GST rates at the master level instead of entering them manually for each transaction.

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2. Specify GST Rate Details for Different Masters in TallyPrime

A. GST Rate Setup for Stock Items in TallyPrime

To define GST rates for individual stock items:

Steps to Specify GST Rate in Stock Items:

1. Go to Gateway of Tally > Create / Alter > Stock Item.
2. Select the stock item for which GST needs to be specified.
3. Enable GST Applicable? → Yes.
4. Enter the HSN Code (if applicable).
5. In the GST Details section, specify:
   • Taxability: Taxable, Exempt, or Nil Rated.
   • GST Rate: Example: 18% (9% CGST + 9% SGST for intrastate, 18% IGST for interstate).

Example:

• Item: Laptop
• HSN Code: 8471
• GST Rate: 18%
• Taxability: Taxable

When this item is used in an invoice, TallyPrime will automatically apply 18% GST.

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B. GST Rate Setup for Stock Groups in TallyPrime

Instead of specifying GST rates for each item separately, you can apply GST at the Stock Group level. This helps when multiple products have the same GST rate.

Steps to Specify GST Rate in Stock Groups:

1. Go to Gateway of Tally > Create / Alter > Stock Group.
2. Select the stock group.
3. Enable Set/Alter GST Details? → Yes.
4. Enter:
   • HSN Code
   • GST Rate
   • Taxability

Example:

• Stock Group: Mobile Phones
• HSN Code: 8517
• GST Rate: 12%

Now, all stock items under “Mobile Phones” will inherit the 12% GST rate unless an item has a specific GST rate.

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C. GST Rate Setup for Accounting Groups in TallyPrime

To apply GST at the ledger level, you can set it up in Accounting Groups like Sales, Purchases, or Expenses.

Steps to Specify GST Rate in Accounting Groups:

1. Go to Gateway of Tally > Create / Alter > Accounting Group.
2. Select the relevant group (e.g., Sales Accounts, Purchase Accounts).
3. Enable Set/Alter GST Details? → Yes.
4. Specify:
   • Nature of Transaction (Sales Taxable, Sales Exempt, etc.).
   • GST Rate.

Example:

• Accounting Group: Sales – Electronics
• GST Rate: 18%

Now, all ledgers under this group will have an 18% GST rate unless overridden at the ledger level.

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D. GST Rate Setup for Sales/Purchase Ledgers in TallyPrime

You can specify GST rates directly in Sales and Purchase Ledgers.

Steps to Specify GST Rate in Ledgers:

1. Go to Gateway of Tally > Create / Alter > Ledger.
2. Select the ledger (e.g., “Sales – GST 18%”).
3. Enable GST Applicable? → Yes.
4. Enter:
   • Nature of Transaction (e.g., Sales Taxable, Purchase Taxable, Exempt, etc.).
   • GST Rate.
   • Type of Supply: Goods or Services.

Example:

• Ledger: Sales – GST 18%
• Nature of Transaction: Sales Taxable
• GST Rate: 18%
• Type of Supply: Goods

Now, whenever this ledger is used in an invoice, TallyPrime will apply an 18% GST rate.

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E. GST Rate Setup for GST Classifications in TallyPrime

GST classifications allow you to define GST rates for specific types of transactions.

Steps to Specify GST Rate in GST Classifications:

1. Go to Gateway of Tally > Create / Alter > GST Classification.
2. Enable Set/Alter GST Details? → Yes.
3. Define:
   • HSN/SAC Code.
   • GST Rate.
   • Nature of Transaction.

Example:

• GST Classification: Works Contract
• HSN Code: 9954
• GST Rate: 12%

Now, whenever this classification is selected, 12% GST will be applied.

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3. View GST Rate Setup for Masters in TallyPrime

To verify all the GST rate setups in one place:

1. Go to Gateway of Tally > Display More Reports > Statutory Reports > GST Reports > GST Rate Setup.
2. The report displays GST rates for Stock Items, Stock Groups, Accounting Groups, Ledgers, and GST Classifications.

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4. Benefits of Setting GST Rate Details in Masters in TallyPrime

✔ Automates GST calculations in invoices.
✔ Reduces errors in GST returns.
✔ Saves time by applying GST at master levels instead of entering it manually for each transaction.
✔ Ensures compliance with GST laws.

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5. Conclusion

TallyPrime allows businesses to set GST rates at multiple levels (Stock Items, Groups, Ledgers, and GST Classifications) to ensure proper tax calculation.

Regularly reviewing the GST Rate Setup Report can help businesses stay compliant with GST regulations.