Services Availed in Another State as an Intrastate Transaction in TallyPrime

Sometimes your business may receive services physically in another state, but you want to record the transaction as intrastate in your TallyPrime books.

This happens often when the billing address and GST registration are in the same state, but the place of supply is different.

This blog post will explain how to record such cases in TallyPrime with a detailed example and simple steps.

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1. Why Record an Interstate Service as Intrastate?

Under GST rules, tax depends on the location of the supplier and place of supply.

But there are cases when the service is availed in another state, yet you want to treat it as intrastate due to your GST registration and billing.

This may be required:

• For ease of Input Tax Credit (ITC)
• When the supplier issues an invoice with CGST + SGST
• When billing is done to your registered office within the same state

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2. Example Scenario: Services Availed in Another State as an Intrastate Transaction in TallyPrime

Let’s say:

• Your company ABC Pvt Ltd is registered in Maharashtra.
• You hired event management services in Gujarat for a company function.
• The service provider is also registered in Maharashtra.
• Although the service was physically provided in Gujarat, the billing was done to the Maharashtra address with CGST + SGST.
• You want to record this as an intrastate service in TallyPrime.

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3. Step-by-Step Guide to Record the Entry: Services Availed in Another State as an Intrastate Transaction in TallyPrime

Step 1: Enable GST in TallyPrime

1. Press F11 > Statutory & Taxation
2. Enable GST and set the company’s state as Maharashtra
3. Enter your GSTIN if not already done

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Step 2: Create the Party Ledger

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create
2. Name: XYZ Event Services
3. Under: Sundry Creditors
4. Set Maintain balances bill-by-bill to Yes
5. Set GST registration type as Regular
6. Set State as Maharashtra
7. Enter the supplier’s GSTIN

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Step 3: Create the Expense Ledger

1. Go to Gateway of Tally > Accounts Info > Ledgers > Create
2. Name: Event Management Expenses
3. Under: Indirect Expenses
4. Is GST applicable: Yes
5. Type of supply: Services
6. Nature of Transaction: Purchase Taxable

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Step 4: Create GST Tax Ledgers

If not already created, create:

• CGST @ 9%
• SGST @ 9%

Each under Duties & Taxes, with type of duty as GST, and tax type as CGST / SGST respectively.

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Step 5: Record the Purchase Voucher

1. Go to Accounting Vouchers > F9: Purchase
2. Change the voucher mode to Item Invoice or Accounting Invoice
3. Supplier: XYZ Event Services
4. Purchase Ledger: Event Management Expenses
5. Amount: ₹10,000
6. GST Ledgers:
   • CGST @ 9% = ₹900
   • SGST @ 9% = ₹900
7. Narration: “Being event management service billed to Maharashtra office but availed in Gujarat”

Save the voucher.

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4. Verify in GST Reports: Services Availed in Another State as an Intrastate Transaction in TallyPrime

1. Go to Gateway of Tally > Display More Reports > Statutory Reports > GST
2. View GSTR-3B or GSTR-2A Reconciliation
3. You will see the entry under Inward Supplies (Registered) – eligible for ITC

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5. Important Note: Services Availed in Another State as an Intrastate Transaction in TallyPrime

Even though the service was availed in Gujarat, since the invoice is raised to Maharashtra with CGST+SGST, it is treated as an intrastate supply for accounting and GST return purposes.

This is acceptable as long as it matches your supplier’s invoice and GST rules.

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6. Conclusion

TallyPrime gives you the flexibility to record services availed outside your state but billed intrastate, ensuring smooth accounting and GST compliance.

Make sure the invoice matches your state GSTIN and tax type (CGST + SGST) for such entries. Always keep supporting documents in case of audits.