With the GST implementation, various accounting software such as ClearTax and Tally are available to help you prepare your books in alignment with GST rules. In this article, we will guide you how to use Tally ERP 9. Release 6 for GST. You can also integrate your Tally ERP 9 solutions with ClearTax GST.

In order to use Tally, following steps must be followed:

  1. Create a company
  2. Enable GST features
  3. Ledger creation

Let’s discuss the above in detail:

  1. How to create a company
  • Go to Gateway of Tally > Alt + F3 > Create Company
  • Enter the basic information, i.e., name, mailing name and address of the company, currency symbol etc.
  • In the ‘maintain field’, select Accounts Only or Accounts with Inventory as per the company requirements.
  • In the Financial Year from, the first day of the current financial year for e.g., 1-4-2017 will be displayed by default, which can be changed as per requirement.
  • Enter the Tally Vault Password if required.
  • Press Y or Enter to accept and save.

2. Enabling GST features in Tally

  1. Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
  2. In the screen you will find following options :
  3. Enable goods and service tax (GST): Yes
    1. Set/alter GST Details: Yes.
  • This will display another screen where you can set GST details of the company such as the state in which company is registered, registration type, GSTIN number etc.
  • Press Y or Enter to accept and save.
  1. Ledger Creation

After creating a company and activating GST features, you need to create ledgers that will enable you to pass accounting entries in Tally.

Here are the following steps :

  • Go to Gateway of Tally > Accounts Info > Ledgers > Create
  • Enter the Name for the ledger you want to create such as purchase, sales, state tax, central tax, integrated tax, stock item names etc.
  • Select the appropriate group to which such ledger belongs for example state tax under duties and taxes group.
  • Enter the other related information required and press Y or Enter to accept and save.

After having done the above 3 steps, you can start entering accounting entries in Tally. For this, Go to Gateway of Tally >Accounting Vouchers. There are many accounting Vouchers in Tally such as Payment, Receipt, Contra, Sales, Purchase, etc. Choose the relevant Voucher and start passing the accounting entries.

You can also easily create GST compliant invoice using ClearTax Bill book. In case you want assistance only in terms of filing returns, then also you can use ClearTax GST. This software easily integrates with Tally, Excel & other accounting software. You can import invoice level data for Sales & Purchase in the ClearTax software and then it will calculate the data points to be filled on various GSTR  forms like GSTR-1, GSTR 3B… It automatically populates all the data & performs a validation check to make sure the return is error free. You can download our Desktop App for filing GST Returns from Tally in a single click!