Case Study – GST Accounting using Tally ERP
Company: Nirmal Enterprises
GSTIN: 27ABCDE1234F1Z5
State: Maharashtra
Business Type: Trader in electrical goods
Financial Year: 2025–26
Books begin from: 1st April 2025
Vendor (Supplier) Master List
Vendor Name GSTIN State Nature of Supply
Shakti Wires Pvt Ltd 24ABCDE4567G1Z1 Gujarat Inter-state taxable
Spark Lights & Co. 27BCDEF6789H1Z3 Maharashtra Intra-state taxable
Deep Electricals URP (Unregistered) Maharashtra RCM applicable (GTA)
Nirma Insulations 29XYZAB1234H1Z2 Karnataka Inter-state taxable
Vidyut Traders 27ZZZAA1111F1Z8 Maharashtra Intra-state exempt supply
Customer Master List
Customer Name GSTIN State Nature of Supply
Powergrid Solutions 27POWER1234K1Z2 Maharashtra Intra-state taxable
Raytronics Pvt Ltd 24RAYTR4567L1Z3 Gujarat Inter-state taxable
Shiv Electric Stores URP (Unregistered) Maharashtra Intra-state taxable
Nova SEZ Tech Park 27NOVA9999L1Z2 Maharashtra SEZ supply (LUT)
Vidya Institute URP (Unregistered) Maharashtra Exempt sales (education)
5 Purchase Transactions
Amount GST
Date Vendor Item IGST/CGST+SGST Remarks
(₹) Rate
01-
Shakti Wires Copper Inter-state
Apr- ₹50,000 18% IGST ₹9,000
Pvt Ltd Wires taxable
25
03- Spark Lights LED Panels ₹30,000 12% CGST ₹1,800 + SGST Intra-state
Amount GST
Date Vendor Item IGST/CGST+SGST Remarks
(₹) Rate
Apr- & Co. ₹1,800 taxable
25
05-
Deep Transport 5% GTA under
Apr- ₹10,000 RCM ₹500
Electricals Charges RCM RCM
25
07-
Nirma Insulation Inter-state
Apr- ₹20,000 18% IGST ₹3,600
Insulations Tapes taxable
25
09-
Vidyut Office Exempt
Apr- ₹5,000 Exempt Nil
Traders Stationery purchase
25
5 Sales Transactions
Amount GST
Date Customer Item Sold IGST/CGST+SGST Remarks
(₹) Rate
02-
Powergrid Copper CGST ₹5,400 + SGST Intra-state
Apr- ₹60,000 18%
Solutions Wires ₹5,400 taxable
25
04-
Raytronics Inter-state
Apr- LED Panels ₹40,000 12% IGST ₹4,800
Pvt Ltd taxable
25
06-
Shiv Electric Insulation CGST ₹450 + SGST Intra-state to
Apr- ₹5,000 18%
Stores Tapes ₹450 URP
25
08-
Nova SEZ Copper SEZ sale under
Apr- ₹50,000 18% Nil
Tech Park Wires LUT
25
10-
Vidya Educational Exempt supply
Apr- ₹15,000 Exempt Nil
Institute Kits to unregistered
25
Exercise
Using this data in Tally ERP,:
1. Create GST-enabled ledgers for parties, items, tax types.
2. Configure GST details for regular and SEZ transactions.
3. RCM Entries: Purchase from unregistered transporter.
4. Handling exempt sales/purchases.
5. Generating GSTR-1, GSTR-3B and checking impact on ITC computation.
Tips to work in Tally ERP
1. Company and GST Setup
Step 1: Create a Company
1. Open Tally.
2. Navigate to Gateway of Tally > Create Company.
3. Enter company details:
o Name: Nirmal Enterprises
o State: Maharashtra
o GSTIN: 27ABCDE1234F1Z5
4. Save the company.
Step 2: Enable GST Features
1. Press F11 (Features) > F3 (Statutory & Taxation).
2. Set Enable Goods and Services Tax (GST) to Yes.
3. Set Set/alter GST details to Yes.
4. In the GST Details screen:
o Enter the GSTIN.
o Set the applicable state.
o Configure other details as required.
5. Accept and save the settings.
2. Creating Ledgers
A. Party Ledgers (Customers and Suppliers)
For each party:
1. Navigate to Gateway of Tally > Accounts Info > Ledgers > Create.
2. Enter:
o Name: (e.g., Shakti Wires Pvt Ltd)
o Under: Sundry Creditors (for suppliers) or Sundry Debtors (for customers)
o GSTIN/UIN: As applicable
o State: As per party's location
3. Set Maintain balances bill-by-bill to Yes.
4. Accept and save.
B. Tax Ledgers
Create separate ledgers for CGST, SGST, and IGST:
1. Navigate to Gateway of Tally > Accounts Info > Ledgers > Create.
2. Enter:
o Name: (e.g., CGST)
o Under: Duties & Taxes
o Type of Duty/Tax: GST
o Tax Type: Central Tax (for CGST), State Tax (for SGST), Integrated Tax (for
IGST)
3. Accept and save.
C. Sales and Purchase Ledgers
Create ledgers for sales and purchases with appropriate GST classifications:
1. Navigate to Gateway of Tally > Accounts Info > Ledgers > Create.
2. Enter:
o Name: (e.g., Local Sales 18%)
o Under: Sales Accounts or Purchase Accounts
o Set/alter GST details: Yes
o Specify the GST rate and HSN/SAC code
3. Accept and save.
3. Recording Purchase Transactions
Example: Purchase from Shakti Wires Pvt Ltd (Interstate Purchase)
1. Navigate to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter:
o Supplier Invoice No. and Date
o Party A/c Name: Shakti Wires Pvt Ltd
o Purchase Ledger: Interstate Purchases 18%
o Item Details: Copper Wires, Quantity, Rate
o IGST Ledger: Automatically calculates 18% IGST
3. Accept and save the voucher.
Repeat similar steps for other purchase transactions, selecting appropriate parties, ledgers,
and tax rates.
4. Recording Sales Transactions
Example: Sale to Powergrid Solutions (Intrastate Sale)
1. Navigate to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter:
o Customer Invoice No. and Date
o Party A/c Name: Powergrid Solutions
o Sales Ledger: Local Sales 18%
o Item Details: Copper Wires, Quantity, Rate
o CGST and SGST Ledgers: Automatically calculate 9% each
3. Accept and save the voucher.
Repeat similar steps for other sales transactions, ensuring correct selection of parties, ledgers,
and tax rates.
5. Handling Reverse Charge Mechanism (RCM)
Example: Purchase from Deep Electricals (Unregistered GTA Service)
1. Navigate to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter:
o Supplier Invoice No. and Date
o Party A/c Name: Deep Electricals
o Purchase Ledger: GTA Services
o Amount: ₹10,000
3. In the same voucher, add:
o CGST Ledger: ₹250
o SGST Ledger: ₹250
4. Accept and save the voucher.
Recording Payment of RCM Liability
1. Navigate to Gateway of Tally > Accounting Vouchers > F5: Payment.
2. Enter:
o Payment Date
o Payment Mode: Bank or Cash
o Under Account: Bank/Cash Ledger
o Under Particulars: CGST – ₹250, SGST – ₹250
3. Accept and save the voucher.
6. Generating GST Reports
GSTR-1 (Outward Supplies)
1. Navigate to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1.
2. Select the period: 1st April 2025 to 30th April 2025.
3. Review the report for accuracy.
GSTR-3B (Summary Return)
1. Navigate to Gateway of Tally > Display > Statutory Reports > GST > GSTR-3B.
2. Select the period: 1st April 2025 to 30th April 2025.
3. Review the report for accuracy.
7. Printing GST-Compliant Invoices
1. Open the desired sales voucher.
2. Press Alt+P to open the print menu.
3. Configure the invoice format as required.
4. Press Enter to print.
