Comprehensive SEO-Friendly Tutorial with Examples, Tips, and FAQs
Introduction
In my experience in Create GST Ledger in Tally ERP 9 many beginners make mistakes while creating GST ledgers in Tally ERP 9, which later causes errors in GSTR-3B and tax calculation. That’s why understanding this topic properly is very important in 2026.
Understanding how tax values flow into GST returns is essential for accurate filing. For a deeper statutory understanding of return structure and liability reporting, the official GSTR-3B return format guidelines issued by CBIC provide useful reference material.
In this blog post, we will cover:
✔ What is a GST Ledger
✔ Updated GST settings in Tally ERP 9 (2026)
✔ Step-by-step creation of GST ledgers
✔ Examples & formulas
✔ Best practices
✔ FAQs
✔ Conclusion & Disclaimer
What is a GST Ledger in Tally?
A GST Ledger in Tally is used to record tax details such as CGST, SGST, IGST, and CESS for transactions. It helps in generating accurate GST reports, returns (like GSTR-1, GSTR-3B), and audit data.
In Tally ERP 9, a GST Ledger:
- Tracks tax amounts for purchases/sales
- Maps tax types to HSN codes
- Helps in GST filing and reconciliation
GST ledger concepts are defined under Indian GST law. For official definitions, tax components, and compliance rules, refer to the Goods and Services Tax (GST) framework by the Government of India, which serves as the primary authority for GST regulations.
Updated GST Settings in Tally ERP 9 (2026)
Before creating the GST ledger, ensure your Tally settings are updated:
✅ Enable GST in Tally
- Go to Gateway of Tally
- Press F11: Features
- Choose Statutory & Taxation
- Set Enable Goods and Services Tax (GST) to Yes
⚠️ After enabling:
- Select the Financial Year correctly (e.g., 2025-26)
- Choose applicable GST details like state and GSTIN
Example:
If your business is in Haryana, select Haryana and enter the GSTIN correctly.
Tally regularly updates its GST features to align with statutory requirements. For official explanations and system-level behavior, users can also consult the Tally ERP 9 GST documentation provided by Tally Solutions, which explains how GST is implemented within the software.
Step-by-Step Guide to Create GST Ledger in Tally ERP 9
Step 1: Open Ledger Creation Screen
- Go to Gateway of Tally
- Choose Accounts Info
- Select Ledgers
- Click Create
Many beginners get confused at this stage and mistakenly open Stock Items instead of Ledgers, which creates issues later in GST accounting
Before creating GST ledgers, make sure GST is properly enabled and applied in your company. If you are not sure about this setup, you can first learn How to apply GST in Tally ERP 9 step by step to avoid errors later.
Step 2: Enter Basic Ledger Details
| Field | Value/Example |
|---|---|
| Name | CGST @ 9% |
| Under | Duties & Taxes |
👉 Note: Always select Duties & Taxes as the group for GST ledgers.
This is one of the most common mistakes students make—selecting the wrong ledger group can stop GST from appearing correctly in reports.
Step 3: Set GST Tax Details
In the Ledger Creation screen, enter:
| Field | Example |
|---|---|
| Type of Duty/Tax | GST |
| GST Type | Central Tax (CGST) |
| Percentage (%) | 9 |
If Duties & Taxes is not selected, Tally will not treat this ledger as a GST ledger, and tax values may not reflect in GST returns.
Step 4: Create SGST / IGST Ledgers
Repeat the same steps:
✔ SGST @ 9%
✔ IGST @ 18%
(if interstate transactions apply)
Many users accidentally select VAT or Other Tax here, which later causes mismatch between Tally data and GST portal reports.
Step-by-Step Guide to Create GST Ledger in Tally ERP 9
Creating the correct GST ledger ensures that tax is calculated automatically during voucher entry and reflected properly in GST reports.
If you want to understand how Tally performs this calculation internally, you can explore our guide on Calculate GST in Tally ERP 9 with real-world examples.
Example: How GST Ledgers Work in a Sales Invoice
Assume you sell goods for ₹10,000 within the same state (Haryana).
GST breakup:
| Tax | Rate | Amount |
|---|---|---|
| CGST | 9% | ₹900 |
| SGST | 9% | ₹900 |
Total Invoice Value = ₹10,000 + ₹900 + ₹900 = ₹11,800
Tally Entry:
Sales A/c Dr ₹10,000
To CGST @ 9% Cr ₹900
To SGST @ 9% Cr ₹900
To Party A/c Cr ₹10,000
This example is commonly seen in small retail businesses using Tally ERP 9 for GST filing.
GST Ledger Creation Formulas in Tally
When GST is configured correctly:
✔ GST Amount = Taxable Value × GST %
Example:
If Taxable Value = ₹15,000 and GST = 18%
GST Amount = 15,000 × 0.18 = ₹2,700
Split:
- CGST = 9% → ₹1,350
- SGST = 9% → ₹1,350
GST calculation logic used in accounting software follows standard percentage-based taxation principles. Readers who want a conceptual understanding of GST calculation can also explore this GST tax calculation overview for reference purposes.
Best Practices for GST Ledgers
✅ Always verify GSTIN before saving ledger
✅ Match state selection correctly (Intra vs Inter state)
- Intra-state → CGST + SGST
- Inter-state → IGST only
✅ Reconcile tax ledgers monthly
✅ Update Tally ERP 9 regularly
Common Mistakes to Avoid
❌ Creating GST ledgers under wrong group
❌ Forgetting HSN/SAC code mapping
❌ Incorrect GST percentages
❌ Not reconciling with GST returns
Many beginners face issues due to incorrect ledger configuration. If you want a complete practical overview, this guide on How to use GST features in Tally ERP 9 step by step will help you avoid common mistakes.
How to Check GST Ledgers in Tally
Go to:
Display → Statutory Reports → GST Reports
Here you can view:
- GSTR-1
- GSTR-3B
- GST Summary
Make sure the values in GST ledgers match your return.
FAQs (Frequently Asked Questions)
Q1. What is the difference between CGST and IGST in Tally ERP 9 ?
CGST is used for intra-state transactions, while IGST applies to inter-state transactions. In Tally ERP 9, both must be created as separate GST ledgers to ensure correct tax calculation and reporting.
Q2. Can I edit a GST ledger in Tally ERP 9 later ?
Yes, a GST ledger can be edited. However, changes made after posting transactions may affect GST reports, so it is best to verify ledger details before use.
Q3. Do I need separate GST ledgers for different tax rates ?
Yes, each GST rate (such as 5%, 12%, or 18%) requires a separate GST ledger in Tally ERP 9 for accurate reporting and return filing.
Q4. How does Tally show GST ledgers in GST reports ?
When GST ledgers are used correctly in entries, Tally automatically reflects them in GST reports like GSTR-1 and GSTR-3B. No manual linking is required.
Q5. Is Tally ERP 9 still relevant for GST in 2026 and beyond ?
Yes, Tally ERP 9 is still widely used for GST accounting in 2026, especially by students and small businesses, and remains relevant with proper updates and configuration.
As GST continues to evolve, staying aligned with official updates is important for businesses and professionals. Regular updates and notifications related to GST compliance can be tracked through the official GST portal notifications section to remain future-ready.
Conclusion
If you are a student, accountant, or small business owner, mastering GST ledger creation in Tally ERP 9 will save you from compliance issues and unnecessary GST notices.
✔ Enable GST features
✔ Create separate ledgers for CGST, SGST & IGST
✔ Assign correct rates
✔ Validate with GST reports
This process ensures compliance and prepares your business for stress-free GST filing.
Disclaimer
This blog is for informational purposes only. While every effort has been made to ensure accuracy, GST laws and Tally features may change over time. Always consult a qualified accountant or Tax Professional before making financial decisions.
