GST (Goods and Services Tax) is an essential part of business accounting in India. Even though Tally Prime is the latest version, Tally ERP 9 is still widely used by small businesses, accountants, and learners. If you want to understand how to use GST in Tally ERP 9 step by step, this guide is for you.
This guide is written in simple language and updated as per 2026 GST practices, making it easy for beginners to understand.
For official notifications, return filing, and GST compliance updates, businesses should always refer to the official GST portal of India.
What is GST in Tally ERP 9?
GST in Tally ERP 9 allows businesses to:
- Record GST sales & purchases
- Calculate CGST, SGST, and IGST automatically
- Generate GST invoices
- Prepare GST returns (GSTR-1, GSTR-3B)
These features help businesses maintain accurate GST records and reduce manual calculation errors.
If you are new to GST accounting, it is important to clearly understand What is GST in Tally ERP 9 before moving forward. This concept forms the foundation for recording transactions, calculating tax, and generating GST reports correctly.
Is Tally ERP 9 Still Useful in 2026?
Yes, it is still useful.
Although Tally Prime is recommended, Tally ERP 9 is still relevant for:
- Learning GST basics
- Small traders with simple transactions
- Offline accounting
- Educational and training purposes
According to updates shared on the Tally Solutions official website, Tally Prime is now the primary focus, while ERP 9 is mainly used for learning and legacy purposes.
However, future updates are limited, so migration to Tally Prime is advisable later.
To understand long-term usability and future upgrades, it is helpful to know the Difference between Tally ERP 9 and Tally Prime. This comparison explains why many businesses are gradually shifting to Tally Prime in 2026.
Step 1: Enable GST in Tally ERP 9
Follow these steps carefully:
- Open Tally ERP 9
- Press F11 (Features)
- Select Statutory & Taxation
- Set Enable GST → Yes
- Enter:
- State
- Registration Type (Regular / Composition)
- GSTIN
- Accept the screen (Ctrl + A)
Ensure that the state and GSTIN details are entered correctly, as incorrect information can cause errors in GST reports and returns later.
Beginners can also refer to the official Tally GST documentation to understand configuration settings in more detail.
Step 2: Create GST Ledgers
GST Tax Ledgers
Create these ledgers under Duties & Taxes:
- CGST
- SGST
- IGST
Steps:
- Go to Gateway of Tally
- Accounts Info → Ledgers → Create
- Type of Duty/Tax → GST
- Select Tax Type accordingly
Creating separate GST tax ledgers helps Tally calculate tax accurately and classify GST components properly.
Step 3: Create Party Ledger with GST Details
- Create ledger under Sundry Debtors / Creditors
- Enable GST Details
- Enter:
- GSTIN
- Registration type
- State
This ensures correct tax calculation.
Correct party GST details are essential for generating valid GST invoices and accurate return data.
Step 4: Create Stock Items with GST Rate
- Go to Stock Items
- Enable GST applicability
- Enter:
- HSN Code
- GST Rate (5%, 12%, 18%, 28%)
This helps Tally calculate GST automatically.
Assigning the correct HSN code and GST rate ensures compliance with GST laws and avoids tax mismatches.
Step 5: Record GST Sales Entry
- Go to Accounting Vouchers
- Press F8 (Sales)
- Select Party Ledger
- Select Stock Item
- Add:
- CGST + SGST (for intra-state)
- IGST (for inter-state)
- Accept voucher
Always verify whether the sale is intra-state or inter-state before selecting the GST tax ledger.
Step 6: Record GST Purchase Entry
- Press F9 (Purchase)
- Select Supplier Ledger
- Enter Stock Item
- Apply correct GST tax ledger
- Save voucher
Proper purchase entry helps in claiming accurate Input Tax Credit (ITC) under GST.
Step 7: Generate GST Reports in Tally ERP 9
Go to:
- Display → Statutory Reports → GST
You can view:
- GSTR-1 (Sales)
- GSTR-3B (Summary)
- Tax liability
- Input Tax Credit (ITC)
Note: Direct online filing is limited in ERP 9.
Review GST reports regularly to identify errors early and ensure smooth GST compliance.
Common Mistakes to Avoid
- ❌ Wrong GSTIN entry
- ❌ Incorrect tax ledger selection
- ❌ Wrong state selection
- ❌ Missing HSN codes
Many beginners make these common mistakes while using GST in Tally ERP 9.
Future Changes in GST & Tally (2026 Update)
- Government prefers real-time GST data
- ERP 9 may not support future APIs
- Businesses should plan migration to Tally Prime
- Learning ERP 9 still helps understand GST fundamentals
The Indian government is gradually moving towards real-time GST data reporting.
Conclusion
Tally ERP 9 remains a powerful tool to understand and manage GST accounting in 2026, especially for beginners and small businesses. By following the correct setup and entry methods, you can easily maintain GST compliance. However, for long-term growth and automation, upgrading to Tally Prime is recommended.
With increasing digital compliance and accounting automation, learning Tally can open up many Career opportunities after learning Tally. In 2026, professionals with GST and Tally skills are in high demand across small businesses, firms, and enterprises in India.
Frequently Asked Questions (FAQs)
Q1. Can I file GST returns directly from Tally ERP 9?
Partially. You can generate reports but filing requires manual upload on GST portal.
Q2. Is Tally ERP 9 free?
No, it is paid software, but older versions are still used for learning.
Q3. Is GST calculation automatic in Tally ERP 9?
Yes, once GST is configured correctly.
Q4. Should I learn ERP 9 or Tally Prime in 2026?
Start with ERP 9 basics, then move to Tally Prime.
Disclaimer
This blog is written for educational purposes only. GST rules may change over time. Always consult a professional accountant or GST expert before making business or compliance decisions.
