Last Updated :- 2026
Written by :- [Anurag Panchal ]
Accounting & GST Content Writer with practical experience in Tally ERP 9.
Introduction
How to Calculate GST in Tally ERP 9 Goods and Services Tax (GST) is an important part of business accounting in India. Even in 2026, Tally ERP 9 is still widely used by small businesses, traders, accountants, and students. Many users want to understand how GST is calculated in Tally ERP 9, not just how to enable it.
I have personally seen that many small business owners and accounting students still prefer Tally ERP 9 because of its simple interface and familiarity. While working with GST clients, I noticed that most calculation mistakes happen due to wrong GST configuration, not because of GST rates. That is why understanding GST calculation properly in Tally ERP 9 is still very important in 2026.
What Is GST?
GST (Goods and Services Tax) is an indirect tax applied on the supply of goods and services in India. It replaces multiple old taxes like VAT, Excise Duty, and Service Tax.
For beginners who want to understand GST with practical Tally usage, we have shared a Complete beginner-friendly guide on GST in Tally ERP 9 that covers registration, calculation, invoicing, and reporting in simple steps.
Types of GST in India:
- CGST (Central GST) – Charged by Central Government
- SGST (State GST) – Charged by State Government
- IGST (Integrated GST) – Charged on inter-state sales
Is Tally ERP 9 Still Valid for GST in 2026?
Yes ✅
Even though Tally Prime is the latest version, Tally ERP 9 is still legally usable in 2026 for:
- GST calculation
- GST reports
- Invoice preparation
- JSON export for GST returns (offline method)
However, online return filing is done through the GST portal, not directly from Tally.
In my experience, Tally ERP 9 is still commonly used in small towns, retail shops, and coaching institutes where upgrading to Tally Prime is not a priority. For learning GST basics, ERP 9 is more than sufficient.
Step 1: Enable GST in Tally ERP 9
Before calculating GST, you must enable it.
While enabling GST in Tally ERP 9 is easy, beginners may miss some important settings. For official guidance, you can refer to the Tally ERP 9 GST help documentation provided by Tally Solutions.
Steps:
- Open Tally ERP 9
- 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
GST calculation works correctly only when the setup is done properly. If you are new to GST, this step-by-step guide on How to use GST in Tally ERP 9 helps you understand the complete process from setup to daily transactions.
Step 2: Understand GST Calculation Formula
GST is calculated on the taxable value of goods or services.
Basic GST Formula:
GST Amount = Taxable Value × GST Rate ÷ 100
Total Invoice Value:
Invoice Value = Taxable Value + GST Amount
Step 3: GST Calculation Example (Intra-State Sale)
Example:
- Product Price: ₹10,000
- GST Rate: 18%
- Sale Type: Intra-State
GST Breakup:
- CGST = 9%
- SGST = 9%
Calculation:
CGST = 10,000 × 9 ÷ 100 = ₹900
SGST = 10,000 × 9 ÷ 100 = ₹900
Total Invoice Value:
10,000 + 900 + 900 = ₹11,800
👉 Tally ERP 9 automatically calculates this once GST is configured correctly.
Step 4: GST Calculation Example (Inter-State Sale)
Example:
- Product Price: ₹20,000
- GST Rate: 12%
- Sale Type: Inter-State
IGST Calculation:
IGST = 20,000 × 12 ÷ 100 = ₹2,400
Total Invoice Value:
20,000 + 2,400 = ₹22,400
This is exactly how Tally ERP 9 calculates GST automatically once the tax ledgers and rates are configured correctly. You do not need to apply the formula manually every time, but understanding it helps in cross-checking invoices.
Step 5: Create GST Ledgers in Tally ERP 9
Tally automatically creates GST ledgers, but you can also create them manually.
Required GST Ledgers:
- CGST @ %
- SGST @ %
- IGST @ %
Ledger Creation Path:
Gateway of Tally → Accounts Info → Ledgers → Create
Set:
- Under: Duties & Taxes
- Type of Duty/Tax: GST
- Tax Type: CGST / SGST / IGST
Step 6: Create Sales and Purchase Ledger with GST
Sales Ledger:
- Under: Sales Accounts
- Set GST Applicable → Yes
- Select appropriate GST Rate
Purchase Ledger:
- Under: Purchase Accounts
- Enable GST
- Select correct tax rate
Step 7: Enter GST Sales Voucher (With Example)
Steps:
- Go to Accounting Vouchers
- Press F8 (Sales)
- Select Party Ledger
- Select Sales Ledger
- Enter Amount
- GST automatically appears
Example Entry:
- Sales Amount: ₹15,000
- GST @ 18%
Tally auto-calculates:
- CGST ₹1,350
- SGST ₹1,350
- Total ₹17,700
Step 8: View GST Reports in Tally ERP 9
Important GST Reports:
- GSTR-1 (Outward supplies)
- GSTR-3B (Summary return)
- GST Liability
- Input Tax Credit (ITC)
Path:
Gateway of Tally → Display → Statutory Reports → GST Reports
Once GST calculation and reports are clear, the next step is GST return filing. You can check our step-by-step guide on how to file GST in Tally ERP 9 to understand return preparation and JSON export easily.
GST Calculation Rules Updated for 2026
✔ HSN/SAC codes are mandatory
✔ Correct tax rate selection is essential
✔ Reverse Charge transactions must be marked properly
✔ Export invoices must be zero-rated
✔ JSON export is used for GST return filing
GST rules and compliance requirements may change over time. For the latest notifications, return formats, and official updates, it is recommended to visit the official GST portal.
Common Mistakes to Avoid
❌ Wrong GST rate selection
❌ Missing GSTIN of party
❌ Incorrect state selection
❌ Mixing inter-state & intra-state GST
❌ Not reconciling ITC properly
Avoiding these mistakes helps prevent notices and penalties.
Conclusion
Based on practical usage, Tally ERP 9 is still a dependable option for GST calculation in 2026, especially for beginners and small businesses. If your GST setup is correct, Tally rarely makes calculation mistakes.
However, regular checking of GST reports and reconciliation with the GST portal is strongly recommended.
Frequently Asked Questions (FAQs)
Q1. Can I calculate GST manually in Tally ERP 9 ?
Yes, but automatic calculation is recommended to avoid errors.
Q2. Is Tally ERP 9 allowed for GST in 2026 ?
Yes, it is still valid for accounting and GST calculation.
Q3. Does Tally ERP 9 file GST returns directly ?
No. It exports data in JSON format for upload on GST portal.
Q4. What is the maximum GST rate in India ?
The highest GST slab is 28%.
Q5. Is HSN mandatory in Tally ERP 9 ?
Yes, HSN/SAC codes are mandatory for GST compliance.
If you are a student or beginner, practicing GST entries in Tally ERP 9 daily is the best way to avoid confusion during real client work.
Disclaimer
This article is written for educational and informational purposes only. GST rules and compliance requirements may change over time. Always consult a qualified accountant or GST professional before making financial or tax decisions. The author and website are not responsible for any loss arising from the use of this information.
