Update GST Rate in GST Ledgers in TallyPrime: 4 Easy Steps

Updating the GST rate in GST-ledgers within TallyPrime ensures compliance with the latest tax regulations.

This process is straightforward and involves altering the existing ledger details to include the revised GST rates.

Here is a detailed explanation, with steps and examples:

---

1. Steps to Update GST Rate in GST Ledgers in TallyPrime

1. Enable GST in TallyPrime

• Ensure that GST is enabled in TallyPrime:
  1. Go to Gateway of Tally > Features (F11) > Statutory & Taxation.
  2. Set Enable GST to “Yes.”
  3. Provide the GST details like GSTIN, state, and applicable tax rates.

2. Access the GST Ledger

1. Navigate to Gateway of Tally > Accounts Info > Ledgers > Alter.
2. Select the GST ledger that needs to be updated (e.g., Output GST @ 18% or Input GST @ 5%).

3. Update the GST Rate

1. Open the ledger for alteration.
2. Go to the Set/Alter GST Details option and set it to “Yes.”
3. Modify the GST Rate under the Tax Rate Details section:
   • Enter the new GST rate (e.g., update from 18% to 28%).
4. Ensure other details, such as HSN/SAC Code, Taxability, and Type of Supply (Goods/Services), are correct.
5. Save the changes.

4. Validate the Updated Rate in Transactions

Record a transaction using the updated GST ledger and verify the GST calculation is as per the new rate.

---

2. Examples to Update GST Rate in GST Ledgers in TallyPrime

Example 1: Updating Output GST Ledger

Scenario: A business selling electronics updates the GST rate from 18% to 28%.

Steps:

1. Open the ledger Output GST @ 18%.
2. Alter the GST rate to 28% under Tax Rate Details.
3. Save the ledger.
4. Create a sales invoice:
   • Product: TV.
   • Value: ₹50,000.
   • GST calculated: ₹14,000 (28% of ₹50,000).

Example 2: Updating Input GST Ledger

Scenario: A company purchasing office supplies notices a GST rate change from 12% to 18%.

Steps:

1. Open the ledger Input GST @ 12%.
2. Alter the GST rate to 18% under Tax Rate Details.
3. Save the ledger.
4. Record a purchase invoice:
   • Item: Furniture.
   • Value: ₹30,000.
   • GST calculated: ₹5,400 (18% of ₹30,000).

---

3. Benefits of Updating GST Rates in TallyPrime

1. Compliance: Ensures adherence to updated government tax regulations.
2. Accuracy: Avoids miscalculation of GST, reducing potential penalties.
3. Simplified Recordkeeping: Maintains a clear audit trail with updated tax information.
4. Ease in GST Returns Filing: Correct tax rates simplify GSTR-1, GSTR-3B, and other filings.

---

4. Conclusion

Updating GST rates in TallyPrime is essential to maintain compliance and ensure accurate tax computation.

The process is user-friendly, allowing businesses to quickly adapt to tax changes.

By keeping GST ledgers up-to-date, companies can avoid discrepancies, streamline operations, and simplify statutory filings.