Should I specify a tax percentage rate inside CGST/SGST ledgers?

No. It is highly recommended to leave the percentage of calculation at '0%' in the tax ledgers, and define the GST rates (e.g. 18%, 12%, 5%) directly on the Stock Items. TallyPrime will read the item rates and calculate tax ledger shares automatically.

Under which group should I create CGST, SGST, and IGST ledgers?

All GST ledgers must be grouped under 'Duties & Taxes'. Choose 'GST' as the Type of Duty/Tax, and map each ledger to its corresponding Tax Type (Central Tax for CGST, State Tax for SGST, and Integrated Tax for IGST).

How does TrulyInvoice handle automated GST tax entries?

TrulyInvoice scans your bills, figures out if it is a local or interstate transaction, and selects CGST, SGST, or IGST automatically.

How to Create GST Tax Ledgers in TallyPrime (CGST, SGST & IGST)

Configuring your tax ledgers correctly in TallyPrime is the foundation of GST compliance in Indian accounting. Whether you are generating sales invoices or importing supplier purchase vouchers, setting up CGST, SGST, and IGST under the correct groups prevents audit remarks and mismatched tax returns. Let's walk through the complete ledger setup steps, configuration rules, and troubleshooting strategies.

Key Takeaway (BLUF)

Always create your GST ledgers under the Duties & Taxes group, set the Type of Duty to GST, and map the correct tax type (Central Tax, State Tax, or Integrated Tax). Crucial Tip: Leave the "Percentage of Calculation" at 0%. This forces TallyPrime to read the tax rates directly from your stock items, allowing a single tax ledger to process multiple tax rates (5%, 12%, 18%, 28%) dynamically.

Tally GST Ledger Settings Matrix

To avoid data entry issues, use this summary configuration table during ledger setup in TallyPrime:

Ledger Name	Under Group	Type of Duty	Tax Type	Calculation Rate
CGST Input / Output	Duties & Taxes	GST	Central Tax	0%
SGST Input / Output	Duties & Taxes	GST	State Tax	0%
IGST Input / Output	Duties & Taxes	GST	Integrated Tax	0%

Step-by-Step CGST (Central Tax) Ledger Setup

Follow these exact keystrokes and configuration fields to create your Central Tax ledger:

Open Ledger Alteration

From the Gateway of Tally screen, press C (Create) and then L (Ledger) to open the Ledger Creation utility.

Assign Group and Name

In the Name field, enter CGST A/c. In the Under field, start typing Duties & Taxes and select it from the dropdown list.

Configure Statutory Details

Under Type of Duty/Tax, select GST. Under Tax Type, choose Central Tax from the options. Keep the Percentage of Calculation at 0%. Press Ctrl+A to save.

Creating SGST (State Tax) and IGST (Integrated Tax) Ledgers

The configuration for SGST and IGST follows the same pattern, with minor differences in the statutory mapping fields:

SGST Ledger (State Tax): Name the ledger SGST A/c. Set the group as Duties & Taxes. Map the Type of Duty/Tax to GST, and choose State Tax as the Tax Type. Keep the calculation percentage at 0% and save.
IGST Ledger (Integrated Tax): Name it IGST A/c. Choose Duties & Taxes for the group. Set the Type of Duty/Tax to GST, and select Integrated Tax as the Tax Type. Ensure the calculation percentage is 0% and save.

Why You Should Separate Input and Output Taxes (Best Practice)

Many businesses use a single CGST A/c ledger for both purchases and sales. However, Chartered Accountants highly recommend creating separate ledgers:

Input CGST / SGST / IGST A/c: Used exclusively for purchase vouchers (capturing Input Tax Credit).
Output CGST / SGST / IGST A/c: Used exclusively for sales invoices (representing tax liability).

This separation makes GSTR-3B reconciliation much easier since you can verify total Input Tax Credit directly from your Trial Balance sheet.

Troubleshooting: Why is GST Not Calculating in Vouchers?

If TallyPrime fails to calculate CGST or SGST automatically during voucher creation, verify the following three common settings:

State Aligment: Verify that the State listed in your Party Ledger aligns with the transaction. Local sales require CGST + SGST (buyer in the same state), whereas interstate sales require IGST (buyer in a different state).
Stock Item Configuration: Ensure that GST is set to "Applicable" on your Stock Items, and that you have defined the HSN code and tax rates inside the item definition.
Calculation Method: Make sure the tax ledger percentage of calculation inside the ledger settings is 0% and has not been hardcoded to a specific value.

Automating GST Accounting with TrulyInvoice

Manually mapping tax rates and checking state codes for hundreds of purchase and sales vouchers is time-consuming and error-prone. TrulyInvoice solves this by automating the data extraction:

Auto-State Detection: TrulyInvoice scans the supplier's GSTIN from PDF invoices, determines their origin state, and automatically splits taxes into CGST/SGST (for local) or IGST (for interstate).

Direct Sync: Synced vouchers are posted directly to Tally Prime over secure port 9000, creating clean, audited accounting registers without manual typing.