Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax levied on every value addition. Tally Prime simplifies GST compliance by enabling businesses to configure, record, and manage GST transactions efficiently. This article provides an overview of GST and explains how to use GST features in Tally Prime with a real-world example.
GST is an indirect tax applicable in India, replacing multiple indirect taxes such as VAT, Service Tax, and Excise Duty. It is categorized into:
GST is applicable based on the type of transaction:
Tally Prime supports GST-related features such as:
To use GST features in Tally Prime, follow these steps:
Navigate to:
Set Enable Goods and Services Tax (GST) to "Yes." Fill in the GST details such as:
Press Ctrl + A to save.
Assign GST rates to stock items or ledger accounts.
Navigate to:
While creating or altering a stock item, specify the GST rate under "Taxability." For example:
Record GST-compliant transactions such as sales and purchases.
A business sells mobile phones (GST 18%) worth ₹50,000 to a local customer. The sale involves:
Navigate to:
Enter the customer and item details:
Press Ctrl + A to save.
Tally Prime provides various GST reports for compliance and filing.
Navigate to:
Choose from reports such as:
Based on the example sale, the GSTR-1 report will display:
| Invoice | Taxable Value | CGST | SGST | Total |
|---|---|---|---|---|
| INV-001 | ₹50,000 | ₹4,500 | ₹4,500 | ₹59,000 |
To summarize:
GST compliance is essential for businesses, and Tally Prime makes it easy to manage GST-related tasks. By using its features effectively, businesses can streamline tax filing and maintain accurate records.