Record GST Exempt Purchases in TallyPrime: 5 Easy Steps

Feb 1, 2024

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Recording GST exempt purchases in TallyPrime requires setting up your purchase ledgers and vouchers correctly. Here’s a detailed guide:

Table of Contents

1. Configure Purchase Ledgers:

Go to Gateway of Tally > Create/Alter > Master > Ledgers.
Open the relevant purchase ledger accounts where you record exempt purchases.
Click Ctrl+I or select More Details.
Under Additional Details, access Set/alter GST Details.
Choose Taxability: Select Exempt from the options.
Save the updated information.

2. Create a Purchase Voucher:

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
Enter basic information like date, supplier invoice number, and supplier’s ledger account.

3. Add Purchase Items:

Select the appropriate purchase ledgers (configured as exempt) under Particulars.
Enter quantities and rates for each item purchased.

4. Set Tax Information:

When prompted for GST details, do not select any tax types (CGST, SGST/UTGST, IGST). Leave this section blank.

5. Complete the Voucher:

Select the payment ledger if you’ve made a payment.
For credit purchases, choose the relevant outstanding liability ledger.
Press Enter to save the voucher.

Additional Notes while Recording Exempt GST Purchases in TallyPrime:

Exempt purchases should have ledgers marked as Exempt in the Taxability field.
TallyPrime will not calculate any GST for these purchases.
The voucher reflects the purchase value without any tax.
Maintain proper documentation like purchase invoices for exempt purchases.

Important Points for GST Exempt Purchases in TallyPrime:

Determine the exact nature of the exemption based on GST regulations and consult an accountant for specific guidance.
Ensure accuracy in setting up exempt ledgers to avoid incorrect tax calculations.
Maintain clarity and transparency by mentioning “GST Exempt Purchase” in the narration field of the voucher.

By following these steps and considering the additional points, you can effectively record exempt purchases in TallyPrime, ensuring accurate data and compliance with GST regulations.