How to Create GST Bills in Tally Prime?

Every invoice in India has to be GST-compliant as per the government guidelines, except for a few businesses with an annual turnover below the GST threshold limit.

Maintaining authenticity and ensuring legal compliance in your invoices can help your business in the long run showcasing a professional image.

However, a small error in any GST invoice could lead to delays or penalties. This is where billing software like TallyPrime can help. Creating GST bills in TallyPrime is super easy.

Here’s a simple guide for you to get it right. Everything from GST bill components to billing steps and benefits to the latest updates is discussed in this blog post.

Here we go!

GST Bill Key Components

• Invoice number (16 characters) and date of issuance
• Customer name and address
• Name, address, and GSTIN of the recipient (if registered)
• HSN/SAC code
• Details of all goods or services, with their quantity and unit
• Total value of goods or services
• Discounts (if any)
• Taxable value
• Applicable GST rate for CGST, SGST, IGST, and UTGST
• Total tax amount
• Supplier’s place and delivery address
• Supplier’s signature
• Payment terms (if required)
• Additional notes (if any)

When And Who Needs to Issue a GST Bill?

For the supply of goods, the invoice has to be either generated before or at the time of removal from the transport. And if transportation is not involved, then it should be generated at the time of delivery. If there is a continuous supply, it can be issued with the payment or account statement.

For providing services, the invoice is to be issued within 30 days from the supply date, or 45 days for insurance providers, banks, or any financial institutions.

Who is exempted from issuing a GST invoice?

Those registered under the Composition Scheme (businesses with a turnover up to ₹1.5 crore are eligible for this) must issue a Bill of Supply instead of a GST bill.

Additionally, businesses with an annual turnover below the GST exemption threshold* are not required to register for GST or issue GST invoices.

*GST exemption threshold – ₹20 lakh for services and ₹40 lakh for goods in some states

Suggested Read: How to File GST Return Online, Types & Rules – Tally Solutions

Why Use TallyPrime GST Billing?

• Billing Automation: TallyPrime offers automation. You need not to again and again add information as it will be done automatically. For example, once you have set up your GSTIN, it will automatically add it to every invoice you create in the future. It helps save time and ensures timely invoice delivery.
• Accuracy: Automation has the least scope for errors. TallyPrime GST bills are accurate with every tax calculation and detail correct. It helps in avoiding any compliance issues due to errors.
• Customization: You can tailor your GST invoices in Tally Prime according to your brand uniqueness. It lets you add your business logo, fonts, and colors to ensure a professional image.
• Integration: Tally Prime can integrate well with many third-party tools, and also the government’s GST IRP portal.
• GST Reports: Tally Prime lets you generate and export GST reports like GSTR-1, GSTR-3B, and GSTR-9. These reports can be super helpful to analyze your business finances.
• Data Security: At last, this software offers you top-notch data security to keep your financial information safe.

Guide to Create GST Bills in TallyPrime

Creating a GST invoice in Tally ERP 9 is a hassle-free process. Look at the step-by-step guide below.

1. GST Basic Setup in TallyPrime

The very first step to creating bills is to set up GST by enabling and configuring it through TallyPrime settings. Follow the steps below:

• Enable GST: Navigate to F11: Features. Then move to the Statutory & Taxation section(F3). Enable Goods and Services Tax (GST) toggle to Yes.
• Configure GST Details: Once you have enabled GST, press F12 to go to the configuration settings. From here, you can set options like Place of Supply, Reconciliation, LUT/Bond, and more.
• Multiple GST Registrations: If your business operates in multiple states or has multiple GSTINs, you can manage all registrations under a single company. You can select the specific GSTIN when entering a transaction.

2. Create a Company with GST Details

Here’s how you can create a company:

• Go to Gateway of Tally > Create Company.
• Enter all the company details like the company’s name, address, and financial year.
• You need to enable the GST in the company. In the company creation screen, set the Enable Goods and Services Tax (GST) toggle button to Yes.
• Once it is enabled, enter the GSTIN, Registration Type, and other relevant details that are required.

3. Create Ledgers for GST Transactions

Creating proper ledgers is important for accurate GST calculations. For this, you need to

• Create party ledgers for customers and suppliers under Sundry Debtors and Sundry Creditors, respectively.
• Add GST details for parties. While creating or altering a party ledger, press Alt+S to set GST details like GSTIN, Registration Type, and Place of Supply.
• Create tax ledgers for CGST, SGST, and IGST under the appropriate groups.

4. Record Purchases with GST

• Voucher Type: To record purchases, you have to use the Purchase Voucher (F9).
• Voucher Mode: Choose an Item Invoice for item-wise details or Accounting Invoice for service-related entries.
• Party Details: Select the supplier’s ledger and make sure the Place of Supply is set correctly.
• Stock Items: Enter the purchased items, quantity, and rate. TallyPrime will automatically calculate the applicable GST based on the predefined rates.
• Tax Ledgers: Ensure the correct tax ledgers (CGST, SGST, or IGST) are selected based on the transaction type (local or interstate).

5. Record Sales with GST

• Voucher Type: To record sales with GST, you have to use the Sales Voucher (F8).
• Voucher Mode: Select Item Invoice for goods or Accounting Invoice for service sales.
• Party Details: Choose the customer’s ledger and set the Place of Supply.
• Stock Items: Enter the items sold, quantity, and rate. TallyPrime will calculate the applicable GST.
• Tax Ledgers: Select the appropriate tax ledgers (CGST, SGST, or IGST) based on the transaction type.

6. Generate GST-Compliant Invoices

To generate GST-compliant invoices:

• Once you have saved the voucher, preview the invoice by clicking Alt+P.
• Check every information and ensure that the invoice includes all the required GST details like GSTIN, tax rates, and amounts.
• You can also update the language, as TallyPrime allows invoices to be generated in multiple languages, including Hindi. Configure the language settings as you need them.

7. GST Reports and Returns

TallyPrime provides comprehensive GST reports:

• GSTR-1: For outward supplies
• GSTR-3B: For summary returns
• GSTR-9: Annual return
• Tax Analysis: Detailed tax calculations for each transaction.
• GST Rate Setup: Manage and update GST rates for all the stock items and ledgers.

By following the above steps, you can efficiently create GST Bills in Tally for your business.

Suggested Read: How to Record Sales and Purchase Entry in Tally with GST

Mistakes to Avoid While Creating GST Bills

• Incorrect Information: Every information in a bill must be correct from GSTIN to HSN/SAC codes and other details like name, address, place, etc.
• Missing Details: Every element mentioned in the above section must be there in the bill. It includes invoice numbers, taxable amounts, and more.
• Wrong Codes: HSN/SAC codes must be correct in order to avoid any penalties.
• Late Bills: Always make sure that the bills are timely created and sent to prevent payment delays.
• Missing Reverse Charges: Clearly mention in an invoice about the Reverse Charges whenever it is applicable.

Conclusion

All in all, creating a GST bill in TallyPrime is not rocket science. This software offers every business, whether small or large, full flexibility to create bills easily.

Apart from creating GST bills, you can also get help with its other accounting features. Working with this tool is easy and efficient, plus, it saves you a lot of time and effort with its automation. Must give it a try

FAQs