➢ WHAT IS TALLY?

Tally is an Enterprise Resource Planning (ERP) software primarily used for accounting
purposes. Developed by Tally Solutions Pvt. Ltd., it is widely recognized for its
simplicity and ease of use, making it popular among small and medium-sized
businesses.

➢ Purpose of Tally Software

Tally is designed to handle a variety of accounting tasks, such as:

▪ Accounting: Managing all financial transactions, including sales, purchases,

receipts, and payments.
▪ Inventory Management: Tracking stock levels, orders, and deliveries.
▪ Payroll: Managing employee salaries, bonuses, deductions, and other payroll-
related tasks.
▪ Taxation: Handling tax calculations and generating necessary tax reports for
compliance.
▪ Reporting: Generating financial statements and reports to provide insights into
business performance.
➢ Types of Tally Software
• Tally. ERP 9: The most commonly used version, suitable for a wide range of
business requirements.
 • Tally Prime: An upgraded version of Tally. ERP 9 with improved user interface
and additional features.
• Tally. Server 9: Designed for large enterprises requiring enhanced security and
multi-user environments.
• Tally. ERP 9 Auditors' Edition: Tailored for auditors to help streamline the
auditing process.
• Tally. ERP 9 Shopper 9: Focused on retail businesses, offering point-of-sale
functionalities.
➢ Benefits of Using Tally
▪ Ease of Use: User-friendly interface that simplifies accounting tasks.
▪ Comprehensive Accounting: Covers all aspects of financial management, from
basic bookkeeping to advanced accounting.
▪ Scalability: Suitable for businesses of all sizes, from small startups to large
enterprises.
▪ Accuracy: Minimizes human errors in calculations and data entry.
▪ Compliance: Helps ensure compliance with local tax laws and regulations.
▪ Real-time Processing: Immediate updating of data for accurate and timely
decision-making.
▪ Cost-Effective: Reduces the need for extensive manual bookkeeping, saving
time and resources.
▪ Multi-User Capability: Supports multiple users working simultaneously,
facilitating collaboration.
▪ Customization: Allows for customization to meet specific business
requirements.
▪ Security: Ensures data security and privacy through robust security features.

In summary, Tally is a versatile and powerful tool that helps businesses manage their
accounting, inventory, payroll, and taxation needs efficiently. Its ease of use,
comprehensive features, and scalability make it a preferred choice for many
businesses.
➢ How to create creating a company?

Steps to create a company:

1. Open Tally ERP 9: Launch the Tally ERP 9 application.
2. Select 'Create Company': From the Tally Gateway screen, choose the option
'Create Company'.
3. Enter Company Details: Fill in the necessary details such as:
4. Company Name
5. Address
6. Country
7. State
8. Pin Code
9. Telephone Number
10.Email
11.Financial Year Beginning From
12.Books Beginning From
13.Currency Symbol
14.Maintain (Accounts only or Accounts with Inventory)
15.Base Currency Information
16.Accept the Form: Press ‘Enter’ after entering all details and then ‘Y’ to accept
and save.
➢ How to alter a company?

Steps to make or alter changes in company information:

1. Open Tally ERP 9: Launch the application.

2. Select 'Company Info.': From the Gateway of Tally, press Alt + F3 to open the
'Company Info.' menu.
3. Choose 'Alter': Select the ‘Alter’ option.
4. Select the Company: Choose the company you wish to alter from the list.
5. Modify Details: Make the necessary changes in the company information.
6. Accept the Form: Press ‘Enter’ and then ‘Y’ to save the changes.
➢ How to Select a Company?
Steps to select a company:

1. Open Tally ERP 9: Launch the application.

2. Select 'Select Company': From the Gateway of Tally, press Alt + F3 to open
the 'Company Info.' menu.
3. Choose the Company: Select the company you want to work with from the list
of available companies.

➢ How to Close a Company?

Steps to close a company:

i. Go to Gateway of Tally: Ensure you are

on the main screen.
ii. Press Alt + F1: This key combination will
close the company you are currently working on.
➢ How to create Ledgers in tally?

To create ledgers in Tally ERP 9, follow these steps:

1) Open Tally ERP 9: Launch the Tally application.
2) Go to Accounting Info: From the Gateway of Tally, select Accounts Info by
pressing Alt + F3.
3) Select Ledgers
4) Navigate to Ledgers and then choose Create to add a ledger.
5) Name: Enter the name of the bank. For example, "State Bank of India" or
"HDFC Bank".
6) Under: Select Bank Accounts from the list of groups. This ensures the
ledger is categorized under the appropriate group.
7) Additional Details: Enter other relevant details like the account number if
needed.
8) Accept and Save: Press Enter and then Y to save the ledger.
Repeat for Other Banks.

➢ What is a contra entry?

A contra entry is used to record transactions where cash is deposited into or
withdrawn from a bank account or transferred between bank accounts.
➢ How to pass a contra entry?

Here’s how to pass a contra entry in Tally ERP 9:

1) Open Tally ERP 9: Launch the Tally application and select the
company for which you want to record the entry.
2) Go to Transactions:
3) From the Gateway of Tally, select Transactions and then choose
Accounting Vouchers.
4) Select Contra Voucher:
5) Press F4 to select the Contra voucher type, or choose it from the list
of voucher types.
6) Enter Voucher Details:
7) Date: Enter the date of the transaction.
8) Account Details: In the Bank Account Dr field, select the bank ledger
from which money is withdrawn or transferred. For example, "HDFC
Bank".
9) Amount: Enter the amount of money being withdrawn or transferred.
Bank Account Cr: In the Bank Account Cr field, select the bank ledger
where the money is deposited or transferred. For example, "ICICI
Bank".
10) Amount: Enter the same amount of money being deposited or
transferred.
 11) Add Narration (Optional):
By following these steps, you can efficiently manage multiple bank ledgers and
record contra entries to keep your financial transactions well-organized.

➢ What is payment voucher?

Payment Voucher: A document used to authorize and record a payment. It
typically includes details like the payee’s name, the amount being paid, the
purpose of the payment, and the date.

➢ How to start using payment vouchers and make

payments to sundry creditors in Tally ERP 9?

follow these steps:

1) Create Ledger Accounts for Sundry Creditors
2) Go to Gateway of Tally > Accounts Info > Ledgers > Create.
3) Create a Ledger for each Sundry Creditor:
4) Enter the name of the creditor.
5) Select "Sundry Creditors" from the list.
6) Fill in the other necessary details (e.g., address, GST details).
7) Create a Payment Voucher
8) Go to Gateway of Tally > Accounting Vouchers.

9) Select F5: Payment.

10) Enter the Payment Voucher Details:
11) Voucher Number: It will be auto-generated based on your voucher
configuration.
12) Date: Enter the date of the payment.
13) Select the Bank or Cash Ledger
14) Select the bank or cash ledger from which the payment is being
made.
15) Enter the amount to be paid.
16) Select the Sundry Creditor Ledger
17) In the "Particulars" section, select the sundry creditor ledger to
whom the payment is being made.
18) Enter the amount to be paid to the creditor.
19) Enter Payment Details
20) In the "Narration" section, enter any relevant details regarding the
payment.
21) Save the Voucher
 22) Verify the Entry
23) Go to Gateway of Tally > Display > Day Book to verify the payment
voucher entry.

DAY BOOK FOR VERIFYING ENTRIES

➢ what is receipt voucher?

Receipt voucher: A document that acknowledges the receipt of payment from a
customer. It usually details the amount paid, the date of payment, and the
transaction specifics.

➢ How to start using receipt vouchers and receive

payments from sundry debtors in Tally ERP 9?
follow these steps:
1) Create Ledger Accounts
2) Go to Gateway of Tally > Accounts Info > Ledgers > Create.
3) Create a Ledger for the party from whom you are receiving money:
4) Name: Enter the name of the party.
5) Under: Select "Sundry Debtors" or any other appropriate group.
6) Fill in the other necessary details (e.g., address, GST details).

7) Create a Receipt Voucher

8) Go to Gateway of Tally > Accounting Vouchers.
9) Select F6: Receipt.
10) Enter the Receipt Voucher Details:
11) Voucher Number: It will be auto-generated based on your voucher
configuration.
12) Date: Enter the date of receipt.
13) Select the Bank or Cash Ledger
14) Select the bank or cash ledger into which the money is being received.
15) Enter the amount received.
16) Select the Party Ledger
17) In the "Particulars" section, select the party ledger from whom the
money is being received.
18) Enter the amount received from the party.
19) Enter Receipt Details
 20) In the "Narration" section, enter any relevant details regarding the
receipt.
21) Save the Voucher
22) Press Enter to save the voucher.
➢ what is journal voucher?
Journal: A detailed record of all financial transactions within a company. It includes
entries for all types of transactions, such as sales, purchases, and payments,
providing a chronological account of the business’s financial activities.
➢ How to create necessary ledgers for entries of journal and pass
an entry in journal voucher?
1) Create Ledger Accounts (if needed)
2) Go to Gateway of Tally > Accounts Info > Ledgers > Create.
3) Create the necessary ledgers for the journal entry (e.g., expenses, incomes,
liabilities).

4) Create a Journal Voucher

5) Go to Gateway of Tally > Accounting Vouchers.
6) Select F7: Journal.
7) Enter the Journal Voucher Details:
8) Voucher Number: It will be auto-generated based on your voucher
configuration.
9) Date: Enter the date of the journal entry.
 10) Debit and Credit Entries
11) In the "Particulars" section, enter the ledger account to be debited.
12) Enter the amount to be debited.
13) Enter the ledger account to be credited.
14) Enter the amount to be credited.
15) Enter Journal Details
16) In the "Narration" section, enter any relevant details regarding the journal
entry.
17) Save the Voucher
18) Press Enter to save the voucher.
Before going to understand what are sales and purchase voucher, necessary ledgers
and how to use them, first we need to understand what are stock groups, stock
category, stock item, unit of measure and godowns that is used in sales and
purchase entry.
➢ What are stock groups, stock categories, stock item?
 ▪ Stock Groups: These are categories or classifications used to group similar
types of stock or inventory items together. For example, you might have stock
groups for "Electronics," "Furniture," or "Clothing." This helps in organizing and
managing inventory more efficiently.
▪ Category: This term is often used interchangeably with stock groups but can
sometimes refer to a more specific classification within a group. For instance,
within the "Electronics" stock group, you might have categories like "Mobile
Phones," "Laptops," or "Televisions."
▪ Item: An item is a specific product or unit of inventory within a stock group or
category. For example, "Samsung Galaxy S21" would be an item under the
"Mobile Phones" category within the "Electronics" stock group.
▪ Unit of Measures (UOM): This refers to the standard unit used to measure the
quantity of an item. Common UOMs include "pieces," "boxes," "liters," or
"kilograms." It helps in tracking and managing inventory quantities accurately.
▪ Godowns: These are storage locations or warehouses where inventory items
are kept. A godown can be a physical space like a warehouse or a storage room
within a business. It helps in organizing and managing stock storage and
distribution.
➢ What are sales and purchase voucher?
o Sales Voucher: A document that records a sale transaction. It includes
information about the items sold, the quantity, the price, and the total
amount. It’s used to verify and document sales for accounting purposes.
o Purchase Voucher: A document used to record a purchase transaction. It
details the items bought, the quantity, the price, and the total amount. It
serves as proof of the transaction and is used for accounting and
inventory management.

➢ How to create stock groups, stock categories, stock items, unit

of measures and godowns?
1. Go to the Gateway of Tally.
2. Select 'Inventory Info.' (Press I).
3. Choose 'Stock Groups'.
 4. Select 'Create' (or press C).
5. Enter the Name of the Stock Group.
6. Under 'Under', select the group you want this group to be a part of, or
choose 'Primary' if it's a top-level group.
7. Complete any additional fields (such as 'Allow Stock Item to be Used in
Production' if applicable).
8. Press 'Enter' to save and then 'Esc' to exit.
9. Create Stock Categories
10. Go to the Gateway of Tally.
11. Select 'Inventory Info.'
12. Choose 'Stock Categories'.
13. Select 'Create' (or press C).
14. Enter the Name of the Stock Category.

15. Under 'Under', select the Stock Group you want this category to be
associated with.
16. Complete any additional fields if necessary.
17. Press 'Enter' to save and then 'Esc' to exit.
18. Create Units of Measure
19. Go to the Gateway of Tally.
20. Select 'Inventory Info.'
21. Choose 'Units of Measure'.
22. Select 'Create' (or press C).
23. Enter the 'Name' of the Unit of Measure (e.g., pieces).

24. Set 'Abbreviation' (optional, for short forms).

25. Specify 'Base Unit of Measure' if this unit is a sub-unit of another unit.
26. Complete any additional fields if necessary.
27. Press 'Enter' to save and then 'Esc' to exit.
28. Create Godowns
29. Go to the Gateway of Tally.
30. Select 'Inventory Info.'
31. Choose 'Godowns'.
32. Select 'Create' (or press Alt + C).
33. Enter the Name of the Godown.
 34. Specify any additional details (like address or contact details if necessary).
35. Press 'Enter' to save and then 'Esc' to exit.
36. Create Stock Items
37. Go to the Gateway of Tally.
38. Select 'Inventory Info.'
39. Choose 'Stock Items'.
40. Select 'Create' (or press C).

41. Enter the Name of the Stock Item.

42. Under 'Under', select the Stock Group where this item belongs.
43. Specify 'Unit of Measure' (e.g., PCS).
44. Under 'Rate of Duty', specify any applicable taxes.
45. Enter 'Opening Balance' if needed (this is usually the stock level at the
start of a new financial year).
46. Complete any additional fields (like description, item code, etc.).
47. Press 'Enter' to save and then 'Esc' to exit.

Additional Tips

❖ Use the 'Alter' Option you can edit existing entries using the 'Alter' option if you
need to make changes.
❖ Use the 'Display' Option: To view reports and validate entries, use the 'Display'
option under Inventory Info.

Regular Backups: Always take regular backups of your data to prevent loss.
➢ How to create VAT ledgers and manage purchases and sales
through VAT in Tally ERP 9?
creating VAT ledgers and managing purchases and sales through VAT in Tally ERP 9
involves several steps. Let’s see the steps:

1. Setting Up VAT in Tally ERP 9

I. Open Tally ERP 9: Start the application and select the company for which you
want to set up VAT.
II. Go to Gateway of Tally: Press Gateway of Tally from the main screen.
III. Select F11: Features: This is usually found on the right side or you can press F11.
IV. Choose Accounting Features: Press F1 to access Accounting Features.
V. Enable VAT: Set Enable Value Added Tax (VAT) to Yes. You may also need to set
up VAT details like VAT Rates, VAT Registration Number, etc.
VI. Save and Exit: Save your settings and exit.
2. Create VAT Ledgers VAT on sales What is vat?
a) Create VAT Ledger for VAT on Sales
Value-added tax
b) Go to Gateway of Tally.
(vat) is a type of
c) Select Accounts Info: Press A or navigate to Accounts Info.
indirect tax that is
d) Choose Ledgers: Press L to select Ledgers. levied on the
e) Create a New Ledger: Press C to create a new ledger. value added at
f) Enter Ledger Details: each stage of
g) Ledger Name: Enter a name like VAT on Sales. production or
h) Under: Select Duties & Taxes. distribution of
goods and
services.
 i) Type of Duty/Tax: Choose VAT or relevant VAT type based on your region.
j) Enter VAT Details: Input the VAT rates as per your local VAT regulations.
k) Save: Save the ledger by pressing Enter until you reach the end.
3. Create VAT Ledger for VAT on Purchases
➢ Go to Gateway of Tally.
➢ Select Accounts Info.
➢ Choose Ledgers.
➢ Create a New Ledger: Press C to create a new ledger.
➢ Enter Ledger Details:
➢ Ledger Name: Enter a name like VAT on Purchases.
➢ Under: Select Duties & Taxes.
 ➢ Type of Duty/Tax: Choose VAT or relevant VAT type.
➢ Enter VAT Details: Input the VAT rates as per local VAT regulations.
➢ Save: Save the ledger by pressing Enter until you reach the end.
4. Create purchase Ledger for VAT on Purchases
• Open Tally ERP 9
• Start Tally ERP 9: Ensure Tally ERP 9 is running.
• Select Company: Choose the company for which you wish to create the
purchase ledger.
• Create a New Purchase Ledger
• Navigate to the Gateway of Tally: Go to the main screen of Tally.
• Select ‘Accounts Info’: Choose Accounts Info from the menu.
• Click on ‘Ledgers’: Select Ledgers from the options.
• Click ‘Create’: Click on Create to start creating a new ledger.
• Define Purchase Ledger Details
• Enter Ledger Name: Provide a name for your Purchase Account ledger, like
“Purchase Account” or “VAT Purchases”.
• Select Group: Choose Purchase Accounts from the list of groups to ensure the
ledger is categorized properly for purchases.
• Inventory Values are Affected: Set this to Yes if your purchases affect inventory
records.

• Enter VAT Details:

• VAT Classification: Choose the VAT classification relevant to your purchases.
 • VAT / GST Details: If GST is applicable, specify the relevant GST details, such as
CGST, SGST, or IGST.

• Set the vat rate details like tax rate and nature of transaction.
• Save the Purchase Ledger.
5. Creating a sales Ledger for VAT
• Open Tally ERP 9
• Start Tally ERP 9: Ensure Tally ERP 9 is running.
• Select Company: Choose the company for which you wish to create the sales
ledger.
• Create a new sales Ledger
• Navigate to the Gateway of Tally: Go to the main screen of Tally.
• Select ‘Accounts Info’: Choose Accounts Info from the menu.
• Click on ‘Ledgers’: Select Ledgers from the options.
• Click ‘Create’: Click on Create to start creating a new ledger.
• Define sales Ledger Details
• Enter Ledger Name: Provide a name for your sales Account ledger, like “sales
Account” or “VAT sales”.
• Select Group: Choose sales Accounts from the list of groups to ensure the
ledger is categorized properly for sales.
• Inventory Values are Affected: Set this to Yes if your purchases affect inventory
records.

• Enter VAT Details:

• VAT Classification: Choose the VAT classification relevant to your sales
• VAT / GST Details: If GST is applicable, specify the relevant GST details, such as
CGST, SGST, or IGST.
 • Set vat rate and nature of transactions.

• Save the sales Ledger

• Press Enter: After filling in the details, press Enter to save the ledger.
6. Recording Purchases transaction with VAT
1. Go to Gateway of Tally.
2. Select Accounting Vouchers: Press V to go to Accounting Vouchers.
3. Choose Purchase Voucher: Select F9 to enter a Purchase Voucher.
4. Enter Purchase Details:
5. Supplier's Ledger: Choose or create a ledger for your supplier.
6. Purchase Account: Choose the ledger for the purchase account.
7. VAT on Purchases: Ensure VAT is applied correctly based on the VAT ledger
created.
 8. Enter Item Details: Add details of the items purchased, including quantity, rate,
and VAT applicable.
9. Complete the Voucher: Press Enter to review and complete the transaction.
7. Recording Sales transaction with VAT
1. Go to Gateway of Tally.
2. Select Accounting Vouchers: Press V to go to Accounting Vouchers.
3. Choose Sales Voucher: Select F8 to enter a Sales Voucher.
4. Enter Sales Details:
5. Customer's Ledger: Choose or create a ledger for your customer.
6. Sales Account: Choose the ledger for the sales account.
7. VAT on Sales: Ensure VAT is applied correctly based on the VAT ledger created.

8. Enter Item Details: Add details of the items sold, including quantity, rate, and
VAT applicable.
9. Complete the Voucher: Press Enter to review and complete the transaction.
8. viewing VAT Reports
1. Go to Gateway of Tally.
2. Select Display: Press D.
3. Choose Statutory Reports: Select O for Statutory Reports.
4. Select VAT Reports: Choose VAT to view VAT-related reports such as VAT
Returns, VAT Summary, etc.
By following these steps, you should be able to set up VAT ledgers and manage your
VAT-related transactions effectively in Tally ERP 9.

This is a computer-generated invoice or bill

➢ What is CST?
Central Sales Tax (CST) is an indirect tax levied on the sale of goods when sold from
one state to another within a country. The purpose of CST is to regulate and collect
tax on inter-state sales and ensure that the taxation system is consistent across
different states.
➢ How to create CST ledgers and manage purchases and sales
through CST in Tally ERP 9?
You should check the stationery and taxation features first that the vat feature is
enable or not because without vat feature cst feature will not work.
Let’s create all the necessary ledger that are required to pass the cst entry.
1. Create a purchase ledger for CST.
• Open Tally ERP 9
• Start Tally ERP 9: Ensure Tally ERP 9 is running.
• Select Company: Choose the company for which you wish to create the
purchase ledger.
• Create a New Purchase Ledger
• Navigate to the Gateway of Tally: Go to the main screen of Tally.
• Select ‘Accounts Info’: Choose Accounts Info from the menu.
• Click on ‘Ledgers’: Select Ledgers from the options.
• Click ‘Create’: Click on Create to start creating a new ledger.
• Define Purchase Ledger Details
• Enter Ledger Name: Provide a name for your Purchase Account ledger, like
“Purchase Account” or “Purchases CST”.
• Select Group: Choose Purchase Accounts from the list of groups to ensure the
ledger is categorized properly for purchases.
• Inventory Values are Affected: Set this to Yes if your purchases affect inventory
records.

• Enter CST Details:

• CST Classification: Choose the CST classification relevant to your purchases.
• CST / GST Details: If GST is applicable, specify the relevant GST details, such as
CGST, SGST, or IGST.

• Set the CST rate details like tax rate and nature of transaction.
 • Save the Purchase Ledger
• Press Enter to save.
2. Create Sales Ledger for CST.
o Open Tally ERP 9
o Start Tally ERP 9: Ensure Tally ERP 9 is running.
o Select Company: Choose the company for which you wish to create the sales
ledger.
o Create a new sales Ledger
o Navigate to the Gateway of Tally: Go to the main screen of Tally.
o Select ‘Accounts Info’: Choose Accounts Info from the menu.
o Click on ‘Ledgers’: Select Ledgers from the options.
o Click ‘Create’: Click on Create to start creating a new ledger.
o Define sales Ledger Details
o Enter Ledger Name: Provide a name for your sales Account ledger, like “sales
Account” or “sales CST”.

o Select Group: Choose sales Accounts from the list of groups to ensure the
ledger is categorized properly for sales.
o Inventory Values are Affected: Set this to Yes if your sales affect inventory
records.
o Enter CST Details:
o CST Classification: Choose the CST classification relevant to your sales.
o CST / GST Details: If GST is applicable, specify the relevant GST details, such as
CGST, SGST, or IGST.

o Set the vat rate details like tax rate and nature of transaction.
o Save the sales Ledger.
o Press Enter to save.
3. Create a CST ledger for purchase.
a. Create CST Ledger for CST on purchase.
b. Go to Gateway of Tally.
c. Select Accounts Info: Press A or navigate to Accounts Info.
d. Choose Ledgers: Press L to select Ledgers.
e. Create a New Ledger: Press C to create a new ledger.
f. Enter Ledger Details:
g. Ledger Name: Enter a name like CST on purchase.
h. Under: Select Duties & Taxes.

i. Type of Duty/Tax: Choose CST or relevant CST type based on your region.
j. Enter CST Details: Input the CST rates as per your local CST regulations.
k. Save: Save the ledger by pressing Enter until you reach the end.
4. Create a CST ledger for sales.
▪ Create CST Ledger for CST on Sales
▪ Go to Gateway of Tally.
▪ Select Accounts Info: Press A or navigate to Accounts Info.
▪ Choose Ledgers: Press L to select Ledgers.
▪ Create a New Ledger: Press C to create a new ledger.
▪ Enter Ledger Details:
▪ Ledger Name: Enter a name like CST on Sales.
▪ Under: Select Duties & Taxes.
 ▪ Type of Duty/Tax: Choose CST or relevant CST type based on your region.
▪ Enter CST Details: Input the CST rates as per your local CST regulations.
▪ Save: Save the ledger by pressing Enter until you reach the end.
5. Recording Purchases transaction with CST
a. Go to Gateway of Tally.
b. Select Accounting Vouchers: Press V to go to Accounting Vouchers.
c. Choose Purchase Voucher: Select F9 to enter a Purchase Voucher.
d. Enter Purchase Details:
e. Supplier's Ledger: Choose or create a ledger for your supplier.
f. Purchase Account: Choose the ledger for the purchase account.
g. CST on Purchases: Ensure CST is applied correctly based on the CST ledger
created.
6. Recording Sales transaction with CST
❖ Go to Gateway of Tally.
❖ Select Accounting Vouchers: Press V to go to Accounting Vouchers.
❖ Choose Sales Voucher: Select F8 to enter a Sales Voucher.
❖ Enter Sales Details:
❖ Customer's Ledger: Choose or create a ledger for your customer.
❖ Sales Account: Choose the ledger for the sales account.
❖ CST on Sales: Ensure CST is applied correctly based on the CST ledger created.

❖ Enter Item Details: Add details of the items sold, including quantity, rate, and
CST applicable.
❖ Complete the Voucher: Press Enter to review and complete the transaction.
7. viewing CST Reports
✓ Go to Gateway of Tally.
✓ Select Display: Press D.
✓ Choose Statutory Reports: Select O for Statutory Reports.
✓ Select VAT Reports, after that choose CST FORM 1 TO VIEW CST-related reports
such as CST Returns, CST Summary, etc.
This is a computer
generated invoice
or bill for sales
➢ What is GST?
Goods and service tax (GST) is an indirect tax levied on the supply of goods and
services. It is a nation-wide tax seeking to unify several indirect taxes and is based
on the principle of ‘One Nation One Tax’.

GST Act was passed in the parliament on 24th March, 2017 and it came into effect
from 1st July, 2017.

Types of Taxes under GST:

There are three 3 taxes applicable under GST:

• Central GST (CGST)

• State GST (SGST) or UNION Territory GST (UTGST)
- Both of these taxes are levied on intra-state sales, i.e. within the same state.
• Integrated GST (IGST) – It is levied on inter-state sales, i.e. sales of goods and
services outside the state. It is also levied on imports of goods and services into
India and export of goods and services from India.
✓ E.g., if the GST rate is 12%, it will comprise of 6% CGST + 6% SGST; in case of
sales outside the state, it will be called IGST 12%.
➢ How to create GST ledgers and manage purchases and sales
through GST in Tally ERP 9?
1. Enable GST in Tally ERP 9
2. Open Tally ERP 9.
3. Go to Gateway of Tally.
4. Select F11: Features.
5. Choose F3: Statutory & Taxation.
6. Set Enable Goods and Services Tax (GST) to Yes.

7. Configure other GST-related settings as per your requirements (e.g., GST State,
GST Registration Type, etc.).
8. Create GST Ledger Accounts
9. Go to Gateway of Tally.
10.Select Accounts Info > Ledgers > Create.
11.For CGST Ledger:
12.Name: Enter a suitable name (e.g., “CGST").
13.Under: Choose Duties & Taxes
14.Types of duty/tax: Choose GST
15.Tax type: choose central tax
16.GST Rate: Set the appropriate GST rate (i.e. 9%).
17.For SGST Ledger:
18.Name: Enter a suitable name (e.g., “SGST").
19.Under: Choose Duties & Taxes
20.Types of duty/tax: Choose GST
21.Tax type: choose state tax
22.GST Rate: Set the appropriate GST rate (e.g., 9%).
23.Save: Press Enter to save.

24.For IGST Ledger:

25.Name: Enter a suitable name (e.g., “IGST").
26.Under: Choose Duties & Taxes
27.Types of duty/tax: Choose GST
28.Tax type: choose integrated tax
29.GST Rate: Set the appropriate GST rate (e.g., 18%).
30.Save: Press Enter to save.

31.For CESS Ledger:

32.Name: Enter a suitable name (e.g., “CESS").
33.Under: Choose Duties & Taxes
34.Types of duty/tax: Choose GST
35.Tax type: choose cess
36.GST Rate: Set the appropriate GST rate (e.g., 9%).
37.Save: Press Enter to save.
38.Create GST Sales and Purchase Ledgers
39.Go to Gateway of Tally.
40.Select Accounts Info > Ledgers > Create.
41.Create central tax purchase ledger
42.Define Purchase Ledger Details
43.Enter Ledger Name: Provide a name for your Purchase Account ledger, like”
CENTRAL TAX FOR PURCHASE”.

44.Select Group: Choose Purchase Accounts from the list of groups to ensure the
ledger is categorized properly for purchases.
45.Inventory Values are Affected: Set this to Yes if your purchases affect inventory
records.
46.Enter statutory Details:
47. Like doing applicability of gst, setting/altering gst details
48.Choosing types of supply

49.Set the GST rate details like tax rate and nature of transaction.
50.Save the Purchase Ledger
51.Press Enter to save.
52.Go to Gateway of Tally.
53.Select Accounts Info > Ledgers > Create.
54.Create central tax SALES ledger
55.Define SALES Ledger Details
56.Enter Ledger Name: Provide a name for your SALES Account ledger, like”
CENTRAL TAX FOR SALES”.
57.Select Group: Choose SALES Accounts from the list of groups to ensure the
ledger is categorized properly for SALES.
58.Inventory Values are Affected: Set this to Yes if your SALES affect inventory
records.

59.Enter statutory Details:

60. Like doing applicability of gst, setting/altering gst details
61.Choosing types of supply
62.Set the GST rate details like tax rate and nature of transaction.
63.Save the SALES Ledger
64.Press Enter to save.
65.Go to Gateway of Tally.
66.Select Accounts Info > Ledgers > Create.
67.Create LOCAL tax purchase ledger
68.Define Purchase Ledger Details
69.Enter Ledger Name: Provide a name for your Purchase Account ledger, like”
LOCAL TAX FOR PURCHASE”.
70.Select Group: Choose Purchase Accounts from the list of groups to ensure the
ledger is categorized properly for purchases.
71.Inventory Values are Affected: Set this to Yes if your purchases affect inventory
records.

72.Enter statutory Details:

73. Like doing applicability of gst, setting/altering gst details
74.Choosing types of supply
75.Set the GST rate details like tax rate and nature of transaction.
76.Save the Purchase Ledger
77.Press Enter to save.
78.Go to Gateway of Tally.
79.Select Accounts Info > Ledgers > Create.
80.Create LOCAL tax SALES ledger
81.Define SALES Ledger Details
82.Enter Ledger Name: Provide a name for your SALES Account ledger, like”
LOCAL TAX FOR SALES”.
83.Select Group: Choose SALES Accounts from the list of groups to ensure the

84.Inventory Values are Affected: Set this to Yes if your SALES affect inventory
records.
85.Enter statutory Details:
86. Like doing applicability of gst, setting/altering gst details
87.Choosing types of supply

88.Set the GST rate details like tax rate and nature of transaction.
89.Save the SALES Ledger
90.Press Enter to save.
91.Save: Save the ledger by pressing Enter until you reach the end.
92.Go to Gateway of Tally.
93.Select Accounting Vouchers: Press V to go to Accounting Vouchers.
94.Choose Purchase Voucher: Select F9 to enter a Purchase Voucher.
95.Enter Purchase Details:
96.Supplier's Ledger: Choose or create a ledger for your supplier.
97.Purchase Account: Choose the ledger for the purchase account with GST ledger
created or attached details. (e.g., central tax for purchase and local tax for
purchase.)
98.Now in the end of list choose and use created GST ledgers like CGST, SGST,
IGST and CESS etc. to implement the tax on purchase of goods.
99.Enter and save the voucher entry
 Local tax usage on purchase

Central tax usage on purchase

100. Go to Gateway of Tally.

101. Select Accounting Vouchers: Press V to go to Accounting Vouchers.
102. Choose Sales Voucher: Select F8 to enter a Sales Voucher.
103. Enter Sales Details:
104. Supplier's Ledger: Choose or create a ledger for your supplier.
105.Sales Account: Choose the ledger for the sales account with GST ledger created
or attached details. (e.g., central tax for sales and local tax for sales.)
 106.Now in the end of list choose and use created GST ledgers like CGST, SGST,
IGST and CESS etc. to implement the tax on sales of goods.
107. Enter and save the voucher entry
Local tax usage on purchase

Central tax usage on purchase

❖ In this way we can use GST features to pass entries in sales and purchase voucher
with GST.
This is a intra-state generated
purchase invoice or bill.

This is a inter-state generated

purchase invoice or bill.
 This is an intra-state generated sales invoice or bill.

Now there would be a question rising, how am I printing these invoices or

generating these invoices or bill?
➢ It’s very simple, go to your day book and choose the entry you want to print.
➢ Now press Alt + C, you will see its asking for permission to print click yes.
➢ Now it will be generated in few seconds.
 This is an inter-state generated sales invoice or bill.

Addition tips:

i. you can add and remove the details and information under invoice through configuration.
ii. Just press F12 during printing and you will see configuration features just change according to your
requirements.