Set HSN Code for Stock Items / Stock Groups in TallyPrime: 4 Steps

When you are dealing with goods in GST, using the correct HSN code is mandatory.

HSN stands for Harmonized System of Nomenclature and it helps classify goods in a systematic way under GST.

In TallyPrime, you can set HSN codes either at the stock item level or the stock group level.

Let’s go through each option step by step with examples.

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1: Enable GST in TallyPrime

Before you can set HSN codes, you need to enable GST in your company settings.

Here’s how:

1. Go to Gateway of Tally > Press F11 (Features).
2. Choose Statutory & Taxation.
3. Set Enable Goods and Services Tax (GST)? to Yes.
4. Fill in your GST details like:
   • Registration type (Regular, Composition, etc.)
   • State
   • GSTIN (15-digit GST number)

Once GST is enabled, you’ll be able to set HSN codes.

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2: Set HSN Code in a Stock Item in TallyPrime

This is the most accurate way to apply HSN and GST rates.

Example: Suppose you sell Steel Rods, and the HSN code is 7214.

Here’s what you do:

1. Go to Gateway of Tally > Inventory Info > Stock Items > Create or Alter.
2. Enter the name of the item: Steel Rods.
3. Under GST Details, enable Set/alter GST details? and press Enter.
4. In the GST Details screen:
   • Enter HSN Code: 7214
   • Enter Tax Rate: IGST 18% (or split it as CGST 9% + SGST 9%)

Press Ctrl + A to save.

Now, this stock item is ready for GST-compliant billing.

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3: Set HSN Code in a Stock Group in TallyPrime

If multiple items share the same HSN code and tax rate, you can save time by applying the HSN code to the stock group instead.

Example: Suppose you have a group called Plastic Goods, and all items in this group fall under HSN code 3926 with 18% GST.

Follow these steps:

1. Go to Gateway of Tally > Inventory Info > Stock Groups > Create or Alter.
2. Enter the group name: Plastic Goods.
3. Set Set/alter GST details? to Yes and press Enter.
4. In the GST Details screen:
   • Enter HSN Code: 3926
   • Enter Tax Rate: IGST 18% or CGST/SGST 9% each.

Press Ctrl + A to save.

Now, all items under this group will follow the group’s HSN and tax rate—unless overridden at the stock item level.

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4: Use the Stock Item in a Transaction in TallyPrime

Now let’s see how Tally automatically picks up the HSN and tax details in an invoice.

1. Go to Accounting Vouchers (Gateway of Tally > Vouchers).
2. Choose Sales Voucher (F8).
3. Select the customer and your stock item (like Steel Rods).
4. Tally will auto-fill the HSN and GST rates based on your settings.

In Print Preview, you’ll see the HSN code on the invoice. This makes your invoices GST compliant.

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5. Final Tips for Setting Up HSN Code in TallyPrime for Stock Items or Stock Groups

• Always use official HSN codes from the GST portal or CBIC website.
• If you assign HSN at both group and item level, the item-level HSN will override the group-level setting.
• Keep a record of all HSN codes you use, especially if you’re managing large inventories.

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6. Conclusion

Setting HSN codes in TallyPrime is easy once you understand where and how to apply them.

Whether you apply them at the stock item level for accuracy or the group level for speed, Tally helps you stay compliant with GST.

By correctly setting HSN codes, you also make your GSTR-1 filings, invoices, and audit trails cleaner and more accurate.