Set GST Rate for Stock Items in TallyPrime: 3 Steps + Example

In TallyPrime, the GST rate for stock items is not a pre-defined value but rather a user-configurable setting that allows you to manage the Goods and Services Tax (GST) applicable to each item in your inventory.

This flexibility ensures you can accurately reflect the varying tax rates associated with different types of goods and services you sell.

Here’s a detailed explanation of GST rates for stock items in TallyPrime with an example:

1. Defining GST Rates in Stock Items:

1. Access Stock Item Creation/Edit:

• Open the Gateway (usually Alt+F12).
• Navigate to “Inventory Info” and select “Stock Items.”
• Choose an existing stock item or create a new one.

2. Configure GST Details (Optional):

• Press F12 (Configure) to access the configuration menu.
• Ensure “Set/Alter GST Details” is set to “Yes” if you want to define a specific GST rate for this item.

3. Specifying GST Details:

• In the “GST Details” section, choose “On Item Rate” if the GST rate is already included in the purchase/sale price of the item.
  • Select “On Margin” if you need to calculate GST separately based on the cost price and selling price.
• Select the applicable GST rate from the list displayed in TallyPrime.
  • This list should include the most common GST rates established by the Indian government (e.g., 0%, 5%, 12%, 18%, 28%).

2. Example: Setting GST Rate for T-Shirts

You sell T-shirts that fall under the 18% GST category.

1. Steps:

1. Follow the access steps mentioned above to create or edit a stock item for “T-Shirt.”
2. Press F12 (Configure) and ensure “Set/Alter GST Details” is set to “Yes.”
3. In the “GST Details” section, choose “On Item Rate” (assuming the GST is included in the price).
4. Select the GST rate as “18%” from the available options.

3. Benefits of Defining GST Rates in Stock Items:

1. Accurate Tax Calculations:

Ensures automatic calculation of GST during purchase and sales transactions involving the item.

2. Simplified Reporting:

Streamlines the generation of GST reports by pre-defining relevant details for each stock item.

3. Improved Compliance:

Helps maintain accurate GST records for filing returns and audits.

4. Additional Considerations:

• Maintain a consistent approach to defining GST within your stock items (On Item Rate or On Margin) for simplified management.
• Regularly review and update your stock item GST details to reflect any changes in tax rates or regulations.
• Consider utilizing features like HSN (Harmonized System Nomenclature) codes within stock item configurations for enhanced GST reporting capabilities.

By effectively defining GST rates for your stock items in TallyPrime, you can achieve accurate tax application in your transactions, generate reliable GST reports, and ensure compliance with tax regulations.