How to Set New GST Rates in Tally Prime: A Complete Guide

The Goods and Services Tax (GST) is an integral part of business accounting in India. With frequent updates to GST rates by the government, it is essential for businesses to keep their accounting software, like Tally Prime, up to date. Tally Prime provides a robust platform to manage GST efficiently, ensuring compliance and accurate tax calculation. This guide explains how to set new GST rates in Tally Prime step by step.

Step 1: Enable GST in Tally Prime

Before updating GST rates, ensure that GST is enabled in Tally Prime.

1. Navigate to Gateway of Tally → F11: Features → F3: Statutory & Taxation.
2. Set Enable Goods and Services Tax (GST) to Yes.
3. Enter GST details such as your State, GSTIN, Type of Business (Regular/Composition/Dealer), and other registration details.
4. Press Enter to save the configuration.

Enabling GST ensures that Tally Prime will automatically calculate taxes in vouchers and reports based on the configured rates.

Step 2: Update GST Rates for Stock Items

Updating the GST rate for stock items is crucial, as invoices are calculated based on item-wise rates.

1. Go to Gateway of Tally → Inventory Info → Stock Item → Alter.
2. Select the item you want to update.
3. Under Taxation, enable GST applicable.
4. Enter the new GST rate, including CGST + SGST/UTGST or IGST, depending on your state rules.
5. Save the changes.

Tip: For multiple items, you can use Tally’s Import Masters option to update GST rates in bulk using an Excel sheet, saving significant time.

Step 3: Update GST Rates for Ledgers

Tally Prime also requires GST rate updates in the ledger accounts for CGST, SGST, and IGST:

1. Go to Gateway of Tally → Accounts Info → Ledgers → Alter.
2. Select the ledger used for GST.
3. Update the Tax Type and GST Rate to reflect the new government-prescribed rate.
4. Save the ledger.

Updating the ledger ensures that manual vouchers or ledger-based GST entries also calculate taxes accurately.

Step 4: Apply GST Rates in Voucher Entries

Once items and ledgers are updated, ensure that new GST rates are applied in transaction vouchers:

1. Go to Accounting Vouchers → F8: Sales / F9: Purchase.
2. While entering an invoice, check the GST column for each item or ledger.
3. Confirm that the correct new GST rate is selected. Tally Prime will calculate GST automatically.

This step is vital to avoid errors in invoice amounts and GST returns.

Step 5: Verify GST Reports

After updating GST rates, it is important to verify that Tally Prime is reflecting the correct values:

1. Navigate to Gateway of Tally → Display → Statutory Reports → GST → GST Returns.
2. Review GSTR-1, GSTR-2, and GST Payable/Receivable reports.
3. Ensure that the new rates are applied correctly across invoices, purchase entries, and ledgers.

Correct GST reporting ensures compliance with the government’s requirements and avoids penalties.

Pro Tips for Efficient GST Updates

• Always update stock items and ledgers before creating new invoices.
• Maintain an effective date for new GST rates if they apply from a specific date.
• Use Excel import/export for bulk updates if the business has hundreds of items.
• Regularly check GST reports to ensure all transactions comply with the updated rates.

By following these steps, businesses can efficiently update new GST rates in Tally Prime, maintain compliance, and avoid errors in tax calculations. Tally Prime’s intuitive GST management ensures accurate invoicing, accounting, and reporting, saving time and effort for business owners and accountants alike.