How to Setup GST Service Ledgers in TallyPrime: 8 Easy Steps

Jan 30, 2024

—

by

Setting up GST Service Ledgers in Tally Prime ensures accurate tax calculations and reporting for services your business provides. Here’s a detailed guide:

Table of Contents

1. Accessing the Ledger Creation Menu:

Go to Gateway of Tally.
Select Create/Alter > Master > Ledger.

2. Specifying Ledger Type:

In the Under field, choose Sundry Creditors/Debtors.
Select Indirect Taxes as the Group.

3. Choosing the Ledger Name:

Provide a descriptive name for the ledger clearly identifying the specific service you offer.
Consider including keywords like “GST Service Charges” or “Taxable Service Income” for easy referencing.

4. Entering Ledger Details:

Select the appropriate Opening Balance if applicable.
You can set the Party Type to Government Supplier/Customer if it’s a specific government agency you provide services to.

5. Setting GST Details:

Press Ctrl+I or click More Details.
Select Set/alter GST Registration Details.
Choose the Registration type (Regular, Composition, Unregistered).
Enter the GSTIN/UIN (if applicable).

6. Configure Taxability:

In the GST Details section, choose Set/alter GST Details.
Select Taxable to indicate the service is subject to GST.
Choose Exempt if the service is exempt from GST.
For taxable services, specify the applicable Type of Supply (Services) and Tax Rate Structure.

7. Additional Options:

You can further refine tax calculations by defining the Place of Supply if different from your company location.
Consider enabling the Reverse Charge Mechanism if applicable for specific transactions.

8. Saving and Verification:

Press Ctrl+A to save the configured GST Service Ledger.
Verify the details by opening the ledger again and reviewing the GST Details section.

Bonus Tips while Configuring GST Service Ledgers in TallyPrime:

Maintain separate ledgers for different types of services you offer, especially if tax rates or exemptions vary.
Utilize descriptive narration fields when recording transactions to further clarify the nature of the service and associated taxes.
Regularly reconcile your GST returns with your Tally Prime data for accuracy.

By following these steps and considering the additional tips, you can effectively configure GST Service Ledgers in Tally Prime, ensuring smooth tax management and reliable reporting for your service-based business.