GST Rate & HSN/SAC in Sales/Purchase Ledgers in TallyPrime

Applying GST rates and HSN/SAC (Harmonized System of Nomenclature/Service Accounting Code) details to sales and purchase ledgers in TallyPrime is essential for accurate GST compliance and reporting.

Here’s how to set it up in detail, with multiple examples for better understanding.

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1. Steps to Apply GST Rate and HSN/SAC in Sales/Purchase Ledgers in TallyPrime

1. Enable GST in TallyPrime

To use GST features, ensure GST is activated in your TallyPrime settings:

1. Go to Gateway of Tally > Features (F11) > Statutory & Taxation.
2. Set Enable GST to “Yes.”
3. Provide your GST registration details, including GSTIN.

2. Create or Alter Sales/Purchase Ledger

1. Navigate to Gateway of Tally > Accounts Info > Ledgers > Create/Alter.
2. Enter the following:
   • Ledger Name: Give a meaningful name, e.g., Sales 18% or Purchase 5%.
   • Under Group: Choose Sales Accounts or Purchase Accounts based on the type of ledger.
   • Enable Inventory values are affected if the ledger will track stock.

3. Enable GST Details for the Ledger

• Select Set/Alter GST Details and provide:
  • Type of Supply: Choose Goods or Services based on the nature of the transaction.
  • Taxability: Choose from Taxable, Exempt, or Nil-Rated.
  • GST Rate: Enter the applicable GST rate (e.g., 18%, 12%).
  • HSN/SAC Code: Enter the appropriate HSN code for goods or SAC code for services.

4. Save the Ledger

Once the details are complete, save the ledger. This ledger will now calculate GST automatically during transactions.

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2. Example Scenarios of Applying GST Rate and HSN/SAC in Sales/Purchase Ledgers in TallyPrime

Example 1: Sales Ledger for Taxable Goods

A company sells furniture taxable at 18% GST.

1. Create a sales ledger:
   • Name: Sales 18%.
   • Under: Sales Accounts.
   • Type of Supply: Goods.
   • Taxability: Taxable.
   • GST Rate: 18%.
   • HSN Code: 9403 (for furniture).
2. Record a sales invoice:
   • Customer buys furniture worth ₹50,000.
   • Select the Sales 18% ledger.
   • TallyPrime calculates GST as ₹9,000 (18% of ₹50,000).
   • The total invoice value becomes ₹59,000.

Example 2: Purchase Ledger for Taxable Goods

A business purchases raw materials with 5% GST.

1. Create a purchase ledger:
   • Name: Purchase 5%.
   • Under: Purchase Accounts.
   • Type of Supply: Goods.
   • Taxability: Taxable.
   • GST Rate: 5%.
   • HSN Code: 4011 (for rubber tires).
2. Record a purchase invoice:
   • Material cost: ₹1,00,000.
   • Select the Purchase 5% ledger.
   • GST calculated: ₹5,000.
   • Total payable: ₹1,05,000.

Example 3: Service Ledger with SAC Code

A business avails transportation services taxable at 12% GST.

1. Create a service ledger:
   • Name: Transport Services 12%.
   • Under: Direct Expenses.
   • Type of Supply: Services.
   • Taxability: Taxable.
   • GST Rate: 12%.
   • SAC Code: 996511 (for goods transport services).
2. Record a transaction:
   • Service cost: ₹20,000.
   • GST calculated: ₹2,400.
   • Total expense recorded: ₹22,400.

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3. Benefits of Applying GST Rates and HSN/SAC Details in TallyPrime

1. Compliance: Ensures transactions meet GST rules and include correct rates and codes.
2. Accuracy: Minimizes errors in GST computation for invoices and returns.
3. Automation: Eliminates manual tax calculations, reducing effort.
4. GST Return Filing: Facilitates accurate GSTR-1 and GSTR-3B filing with item-wise tax details.
5. Transparency: Helps in clear identification of taxable goods/services with applicable rates.

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4. Conclusion

Configuring sales and purchase ledgers with GST rates and HSN/SAC details in TallyPrime simplifies GST compliance and streamlines tax calculations.

It ensures precision in invoicing, reporting, and tax filings, making it an indispensable feature for businesses managing GST-based transactions.

By leveraging TallyPrime’s automation, businesses can maintain regulatory adherence while enhancing operational efficiency.