Interstate Purchase of Goods in TallyPrime: 5 Steps + Example

If your business buys goods from a supplier in a different state, the transaction is known as an interstate purchase.

In such cases, IGST (Integrated GST) is applicable instead of CGST and SGST.

TallyPrime makes it easy to record interstate purchases and automatically calculates the correct taxes.

Let’s understand how to record an interstate purchase of goods in TallyPrime with a clear example and simple steps.

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1. What is an Interstate Purchase in TallyPrime?

An interstate purchase means:

• You and the supplier are located in different states
• For example, your business is in Maharashtra, and the supplier is in Gujarat
• GST is charged as IGST

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2. Example Scenario: Interstate Purchase of Goods in TallyPrime

Let’s say:

• You purchase mobile phones from a supplier in Gujarat
• Quantity: 50 units at ₹10,000 each
• Total value = ₹5,00,000
• GST rate = 18% (IGST)
• IGST amount = ₹90,000
• Total invoice = ₹5,90,000

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3. Step-by-Step: Record Interstate Purchase in TallyPrime

Step 1: Enable GST

1. Press F11 (Features) > Statutory & Taxation
2. Set Enable Goods and Services Tax (GST) to Yes
3. Set your company’s State (e.g., Maharashtra)
4. Enter your GSTIN
5. Save using Ctrl + A

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Step 2: Create the Supplier Ledger

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create
2. Name: XYZ Traders
3. Under: Sundry Creditors
4. Set GST Registration Type → Regular
5. Enter their GSTIN (Gujarat-based)
6. Make sure the State is Gujarat
7. Save the ledger

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Step 3: Create the Stock Item

1. Go to Inventory Info > Stock Items > Create
2. Name: Mobile Phones
3. Unit: Nos
4. GST Applicable: Yes
5. HSN Code: Enter appropriate code
6. GST Rate: 18%
7. Save the item

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Step 4: Create the IGST Ledger

1. Go to Accounts Info > Ledgers > Create
2. Name: IGST
3. Under: Duties & Taxes
4. Type of Duty/Tax: GST
5. GST Type: Integrated Tax
6. Rate: 18%

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Step 5: Record the Purchase Voucher

1. Go to Gateway of Tally > Vouchers > F9: Purchase
2. Select supplier: XYZ Traders
3. Enter invoice number and date
4. Choose the Mobile Phones item
   • Quantity: 50
   • Rate: ₹10,000
   • Amount: ₹5,00,000
5. Add the IGST ledger
   • IGST @ 18% = ₹90,000
6. Total = ₹5,90,000
7. Save the voucher

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4. GST Return Impact: Interstate Purchase of Goods in TallyPrime

• The IGST amount is shown in GSTR-3B under Input Tax Credit on interstate purchases
• Appears in GSTR-2B for auto-filled input claims
• Helps claim Input Tax Credit for purchases from outside the state

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5. Final Summary: Interstate Purchase of Goods in TallyPrime

Particulars	Amount (₹)
Mobile Phones (50)	5,00,000
IGST @ 18%	90,000
Total	5,90,000

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6. Conclusion

Recording interstate purchases in TallyPrime is straightforward.

By selecting the correct state and tax type (IGST), you ensure:

• Accurate GST calculation
• Proper accounting
• Easy return filing

TallyPrime automates tax handling and keeps your records clean and GST-ready.