Tally Bookkeeping for GST 2026 — How to Maintain Books, GSTR-1 Export, Reconciliation | RushTax Blog

Tally Prime is the most widely used accounting software for GST compliance in India. Proper Tally bookkeeping ensures accurate GSTR-1 filing, correct ITC claims, and clean audit trails. Here is the complete guide for 2026.

Setting Up GST in Tally Prime

Step 1: Enable GST

Go to Gateway of Tally → F11 (Features) → Statutory & Taxation

Enable Goods and Services Tax (GST): Yes
Set State: Your state
Enter GSTIN
Set GST registration type: Regular / Composition

Step 2: Create GST Ledgers

Create the following ledgers under Duties & Taxes:

CGST (Central GST)
SGST (State GST)
IGST (Integrated GST)
UTGST (Union Territory GST, if applicable)

Step 3: Set Up Stock Items with HSN Codes

For each product/service:

Go to Inventory → Stock Items
Set HSN/SAC code
Set GST rate (5%, 12%, 18%, 28%)
Set tax type (CGST+SGST for intrastate, IGST for interstate)

Step 4: Create Party Ledgers with GSTIN

For each customer and supplier:

Enter their GSTIN
Set registration type (Regular, Composition, Unregistered)
Set state (determines CGST+SGST vs IGST)

Recording Sales Vouchers

B2B Sales (to registered buyers)

Go to Accounting Vouchers → F8 (Sales)
Select the party ledger (with GSTIN)
Enter invoice number and date
Select stock items with HSN codes
Tally automatically calculates CGST+SGST (intrastate) or IGST (interstate)
Save the voucher

B2C Sales (to unregistered buyers)

Same process, but select an unregistered party ledger. Tally will not generate e-invoice for B2C.

Export Sales

Select the party as an export party
Set the supply type as Export
Enter shipping bill details
Tally calculates IGST (or zero-rated with LUT)

Recording Purchase Vouchers

Go to Accounting Vouchers → F9 (Purchase)
Select the supplier ledger (with GSTIN)
Enter the supplier's invoice number and date
Select stock items with HSN codes
Tally automatically calculates ITC (CGST+SGST or IGST)
Save the voucher

Important: Enter the supplier's invoice number exactly as it appears on their invoice. This is used for GSTR-2B reconciliation.

GSTR-1 Export from Tally

Go to Gateway of Tally → Display → Statutory Reports → GST → GSTR-1
Select the period (month)
Review the data — check for errors
Click Export → select JSON format
Upload the JSON file to the GST portal

Common errors to check before export:

Missing GSTIN for B2B parties
Wrong HSN codes
Incorrect invoice numbers
Missing e-invoice IRN (if applicable)

GSTR-2B Reconciliation in Tally

Tally Prime allows you to reconcile your purchase register with GSTR-2B:

Download GSTR-2B JSON from the GST portal
Go to Gateway of Tally → Display → Statutory Reports → GST → GSTR-2B Reconciliation
Import the GSTR-2B JSON
Tally matches each purchase voucher with GSTR-2B
Review mismatches:
- Matched: Invoice in both Tally and GSTR-2B
- In Tally, not in GSTR-2B: Supplier has not filed GSTR-1
- In GSTR-2B, not in Tally: Invoice not recorded in Tally

Common Tally Bookkeeping Mistakes

Not entering supplier GSTIN — Prevents GSTR-2B reconciliation
Wrong HSN codes — Causes GSTR-1 errors
Not recording credit notes — Leads to incorrect GSTR-1
Entering purchase date instead of invoice date — Causes GSTR-2B mismatch
Not reconciling before GSTR-3B filing — Leads to incorrect ITC claims

Tally Prime vs Tally ERP 9

Tally Prime (released 2020) is the current version. Key improvements over ERP 9:

Better GST compliance features
Improved GSTR-2B reconciliation
E-invoice integration
Better reporting

If you are still on Tally ERP 9, upgrade to Tally Prime for better GST compliance.

Frequently Asked Questions

How often should I reconcile GSTR-2B in Tally?

Every month, before filing GSTR-3B. Download GSTR-2B on the 14th and reconcile before the 20th.

Can Tally generate e-invoices?

Yes. Tally Prime has built-in e-invoice generation. Configure your IRP credentials in Tally and it will automatically generate IRN when you save a B2B sales voucher.

What is the difference between GSTR-1 export and e-invoice?

GSTR-1 export is for filing your monthly return. E-invoice is for registering each B2B invoice on the IRP before sharing with the buyer. Both are required for businesses above ₹5 crore turnover.

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