Local Purchase of Goods in TallyPrime: 5 Easy Steps + Example

Purchasing goods locally means buying from a supplier located in the same state as your business.

In such cases, CGST and SGST are applicable instead of IGST.

TallyPrime makes it easy to record these transactions accurately for GST compliance.

This post will help you understand how to record a local purchase of goods in TallyPrime, step-by-step, using simple language and a practical example.

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What is a Local Purchase in GST in TallyPrime?

A local purchase refers to buying goods from a supplier in the same state.

For example, if your business is in Gujarat and you buy from a supplier also located in Gujarat, it’s a local purchase.

In this case:

• CGST (Central GST) and
• SGST (State GST)
  are charged instead of IGST.

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Example Scenario: Local Purchase of Goods in TallyPrime

Let’s say:

• You buy 10 laptops from a local supplier at ₹30,000 each
• Total purchase value: ₹3,00,000
• Applicable GST: 9% CGST + 9% SGST
• Supplier is registered and located in your same state

Now let’s record this in TallyPrime.

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Step-by-Step: Record Local Purchase of Goods in TallyPrime

Step 1: Enable GST

1. Press F11 (Features) > Statutory & Taxation
2. Set Enable GST to Yes
3. Set your state correctly (this affects tax calculation)
4. Press Ctrl + A to save

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Step 2: Create/Check the Supplier Ledger

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create
2. Name: ABC Electronics
3. Under: Sundry Creditors
4. Set GST Registration Type to Regular
5. Enter GSTIN of the supplier
6. Select the state same as yours (for local purchase)

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Step 3: Create the Stock Item

1. Go to Inventory Info > Stock Items > Create
2. Name: Laptop
3. Unit: Nos (or pieces)
4. Set GST Applicable: Yes
5. Enter HSN Code
6. Enter GST rate: 18% (9% CGST + 9% SGST)

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Step 4: Create Tax Ledgers

If not already created:

• CGST Ledger
  • Under: Duties & Taxes
  • Type of Duty/Tax: GST
  • GST Type: Central Tax
  • Percentage: 9%
• SGST Ledger
  • Under: Duties & Taxes
  • Type of Duty/Tax: GST
  • GST Type: State Tax
  • Percentage: 9%

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Step 5: Record the Purchase Voucher

1. Go to Gateway of Tally > Vouchers > F9: Purchase
2. Select the supplier ledger (ABC Electronics)
3. Select the stock item (Laptop)
   • Quantity: 10
   • Rate: ₹30,000
   • Amount: ₹3,00,000
4. Add CGST @ 9% and SGST @ 9% ledgers
   • Each tax will be ₹27,000
5. Total Invoice Value: ₹3,54,000

Press Ctrl + A to save the entry.

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GST Reporting of Local Purchase of Goods in TallyPrime

This purchase will appear in your:

• GSTR-2B and GSTR-3B as eligible input credit
• TallyPrime will auto-calculate the Input Tax Credit (ITC) of ₹54,000

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Final Summary: Local Purchase of Goods in TallyPrime

Particulars	Amount (₹)
Basic Amount	3,00,000
CGST @ 9%	27,000
SGST @ 9%	27,000
Total	3,54,000

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Conclusion

Recording local purchases in TallyPrime is simple. Just make sure:

• The supplier is from the same state
• You apply CGST and SGST correctly
• You have GST enabled in your company settings

TallyPrime ensures accurate calculation and reporting for GST returns, keeping your accounts error-free and compliant.