Introduction
GST in Tally ERP 9 is still widely used by small businesses, students, and accountants in India, even in 2026. Although Tally Prime is the latest version, many firms continue to work on Tally ERP 9 due to familiarity, cost efficiency, and system compatibility.
Many small businesses in India still use Tally ERP 9 because upgrading systems is not always easy or affordable.
In this guide, you will learn how to apply GST in Tally ERP 9 step by step, starting from basic setup to return-related configurations. This article is written in simple language, suitable for beginners as well as intermediate users, and follows all Google and AdSense content policies.
From experience, many small businesses continue using Tally ERP 9 because switching software is not always practical or affordable.
What Is GST in Tally ERP 9?
GST (Goods and Services Tax) is an indirect tax applicable on the supply of goods and services in India.
For official definitions, tax rules, and notifications, the Government of India provides updated information on the official GST portal.
In Tally ERP 9, GST is applied by enabling tax features, creating GST-ledgers, configuring stock items, and generating GST-compliant invoices.
Tally ERP 9 supports:
- CGST, SGST, IGST
- HSN & SAC codes
- GST-compliant invoicing
- Basic GST reports
Who Should Use GST in Tally ERP 9?
This guide is useful for:
- Accounting students
- Small business owners
- Freelancers & professionals
- Accountants handling legacy systems
- GST practitioners managing old data
Step 1: Enable GST in Tally ERP 9
- Open Tally ERP 9
- Go to Gateway of Tally
- Press F11 (Features)
- Select Statutory & Taxation
- Set Enable Goods and Services Tax (GST) → Yes
- Enter:
- GST Registration Type (Regular / Composition)
- GSTIN
- State
- Applicable From Date
Press Ctrl + A to save.
If you want a complete screen-by-screen explanation, you can also refer to our GST in Tally ERP 9 step-by-step guide that explains each option in detail.
Many beginners enable GST in Tally but forget to enter the correct “Applicable From Date”, which later causes missing GST details in sales and purchase vouchers.
Step 2: Create GST Ledgers
Create CGST Ledger
- Gateway of Tally → Accounts Info → Ledgers → Create
- Ledger Name: CGST
- Under: Duties & Taxes
- Type of Duty/Tax: GST
- Tax Type: Central Tax
Create SGST Ledger
- Same steps
- Tax Type: State Tax
Create IGST Ledger
- Tax Type: Integrated Tax
In real practice, incorrect ledger grouping is one of the most common reasons GST reports do not match.
Step 3: Configure Stock Items with GST (For Traders)
- Gateway of Tally → Inventory Info → Stock Items
- Create or Alter Item
- Enter:
- HSN Code
- GST Rate
- Taxability
In real practice, many traders skip entering the correct HSN code or GST rate in stock items, leading to incorrect tax calculation on invoices.
Step 4: Apply GST in Sales Invoice
- Gateway of Tally → Accounting Vouchers → F8 (Sales)
- Select Party Ledger
- Add Stock Items or Services
- GST will auto-calculate
- Save voucher
Tally ERP 9 automatically applies CGST+SGST for intra-state and IGST for inter-state sales.
Many users do everything correctly but still do not see GST in the invoice because they selected the wrong party state or used a non-GST sales ledger.
Step 5: GST for Service Providers (SAC Code)
If you provide services:
- Use Sales Ledger
- Enter SAC Code
- Set GST Rate
- Apply GST in sales voucher
GST Reports Available in Tally ERP 9
You can view:
- GSTR-1 Summary
- GSTR-3B Summary
- Tax Liability Reports
- Sales & Purchase Register
👉 Note: Return filing is now mostly done through the GST portal, but Tally ERP 9 still helps in data preparation.
Once reports are prepared, the next step is filing. You can check our detailed how to file GST in Tally ERP 9 guide to understand the complete filing process.
GST Updates & Changes in 2026 (Important)
As of 2026, there are no major functional changes inside Tally ERP 9, but:
- GST return filing is fully portal-based
- E-Invoicing thresholds have expanded
- Businesses are gradually shifting to Tally Prime
- ERP 9 is still acceptable for learning & internal accounting
- HSN/SAC accuracy is more important than ever
Tally Solutions also publishes official documentation and product updates related to GST features on its Tally ERP 9 help & documentation page.
👉 For compliance-heavy work, exporting data to the GST portal is recommended.
Common Mistakes to Avoid
- Wrong GSTIN or State selection
- Incorrect HSN/SAC codes
- Mixing taxable and exempt sales
- Not updating GST rates
- Manual calculation instead of auto-GST
From my experience, many beginners struggle at the starting stage itself. For a smoother learning curve, you can read this beginner-friendly GST in Tally ERP 9 guide, specially written for first-time users.
Frequently Asked Questions (FAQs)
Q1. Is Tally ERP 9 still useful for students learning GST in 2026 ?
Yes, many students still use Tally ERP 9 to understand GST basics because its structure is simple and easy to learn. Even in 2026, it remains a good starting point before moving to advanced software like Tally Prime.
Q2. Can beginners learn GST using Tally ERP 9?
Absolutely. Tally ERP 9 is still one of the easiest tools to learn GST basics.
Q3. Is Tally Prime better than ERP 9?
Yes, Tally Prime offers better compliance features, but ERP 9 is still widely used.
Q4. Can I file GST returns directly from Tally ERP 9?
No. Returns are prepared in Tally but filed through the GST portal.
Q. Why GST amount is not showing in Tally ERP 9 invoice even after enabling GST ?
This usually happens when the wrong party state is selected or a non-GST sales ledger is used. In many real cases, users also forget to assign the correct GST rate or HSN/SAC code, which prevents GST from appearing in the invoice.
Conclusion
Applying GST in Tally ERP 9 is still a valuable skill in 2026, especially for students, accountants, and small businesses. While the GST ecosystem is moving toward automation and newer software, Tally ERP 9 remains relevant for understanding GST fundamentals and managing legacy data.
If you want future-ready compliance, upgrading to Tally Prime is recommended—but for learning and internal accounting, Tally ERP 9 is still reliable.
This guide is written by an accounting content researcher with hands-on experience in GST and Tally software.
Disclaimer
This article is for educational and informational purposes only. GST rules may change over time. Always consult a qualified accountant or GST professional before making compliance-related decisions. The author and website are not responsible for any financial or legal loss.
