TallyPrime is the accounting software used by most small and medium businesses in India. This guide takes you from a blank installation to a correct GST sales invoice and the GSTR-1 report. Keyboard shortcuts are shown in brackets — Tally is fastest when you barely touch the mouse.
In this article
1. Create the company
- From the Gateway, press Alt+K (Company) → Create.
- Fill in name, mailing name, address, state (this decides CGST+SGST vs IGST later), PIN code and phone.
- Financial year beginning: 1 April of the current year. Books beginning from: the date you start entering.
- Accept with Ctrl+A.
2. Enable GST
Press F11 (Features) → set Enable Goods and Services Tax (GST) to Yes. In the GST details screen enter:
- State and registration type (Regular / Composition)
- GSTIN
- Periodicity of GSTR-1 (Monthly or Quarterly under QRMP)
- E-invoicing and e-way bill applicability, if your turnover crosses the limits
3. Ledgers you need
Gateway → Create → Ledger. Minimum set:
| Ledger | Under group | Notes |
|---|---|---|
| Customer name (e.g. Asha Traders) | Sundry Debtors | Enter their GSTIN and state — this drives IGST vs CGST/SGST |
| Sales – Local / Sales – Interstate | Sales Accounts | GST applicability: Applicable; type of supply: Goods |
| CGST, SGST, IGST (Output) | Duties & Taxes | Type of duty: GST; tax type: Central / State / Integrated |
| Round Off | Indirect Expenses | For paise rounding on invoices |
| Cash, Bank | Cash-in-Hand / Bank Accounts | Opening balances here |
4. Stock items with HSN and GST rate
Create → Stock Item: name, unit (Nos, Mtr, Kg), HSN/SAC code, GST rate (for example 5% for many fabrics, 3% for imitation jewellery — always confirm the current rate for your HSN), and opening stock if any.
5. Record the sales invoice
- Gateway → Vouchers → F8 (Sales). Press Ctrl+H to switch to Item Invoice mode if needed.
- Party A/c name: select the customer. Tally fills the place of supply from their state.
- Sales ledger: Sales – Local (same state) or Sales – Interstate.
- Add items, quantity and rate. Below the items select CGST and SGST (same state) or IGST (other state) — Tally calculates the amounts.
- Add Round Off if required, then Ctrl+A to save. Alt+P prints or exports the invoice as PDF.
6. Check it in the GST reports
Gateway → Display More Reports → GST Reports → GSTR-1. Your invoice should appear under B2B (customer with GSTIN) or B2C. Anything under Incomplete/Mismatch in information needs fixing — usually a missing HSN, GSTIN or rate.
Shortcuts worth learning on day one
| Key | Does |
|---|---|
| F4–F9 | Contra, Payment, Receipt, Journal, Sales, Purchase |
| Alt+C | Create a ledger/item from inside a voucher |
| Ctrl+Enter | Alter the master you are on |
| Alt+G | Go To any report |
| Alt+E | Export the current report |
Next: export Tally data to Excel for analysis.
Stuck on a step? Ask a question and the AI answers using this article.