Interstate Purchase Entry in Tally Prime — IGST Calculation Guide

Acquiring stock or services from vendors in other states is common for growing businesses. Under India's GST framework, these out-of-state transactions are classified as **Interstate Purchases** and attract Integrated GST (IGST). Recording these entries in Tally Prime requires correct configuration of your supplier profiles and Place of Supply locations to prevent compliance audit warnings.

1. What is an Interstate Purchase?

An interstate purchase occurs when the physical supplier location and the delivery warehouse are in different states (or in different countries, classified as imports).

Unlike local transactions where CGST and SGST are split equally, interstate purchases apply the full tax percentage as a single ledger entry called Integrated GST (IGST).

2. Configuring Out-of-State Supplier Profiles

Tally Prime decides the tax type based on the Party Ledger's configuration. A misspelled state or incorrect state code will block the tax calculation:

1. Go to Gateway of Tally > Alter > Ledger and select the supplier ledger.
2. In the **State** field, select the supplier's actual registered state (e.g. *Maharashtra*).
3. Ensure the country is set to *India*.
4. Input their active 15-character GSTIN. Tally verifies that the first two digits (state code prefix) match the state selected in their ledger address profile.

3. Recording an IGST Purchase Voucher (F9)

To pass the F9 voucher:

1. Go to Vouchers > F9 Purchase.
2. Input the Supplier Invoice number and date.
3. In the **Party A/c Name**, select the out-of-state vendor ledger.
4. Select the **Purchase Ledger** and add the items, quantities, and rates.
5. Under particulars, select the **Input IGST** ledger. Tally automatically calculates the integrated tax rate. If it fails to compute, check your item GST rate definitions or party state details.
6. Save the voucher.

4. Selecting the Place of Supply in Tally

The tax jurisdiction is determined by the **Place of Supply**. Tally populates this field based on your company's state.

If you are importing goods to a branch located in a different state, verify the Place of Supply matches the branch's state in the voucher's tax details screen, guaranteeing the tax allocation is correct for filing.

5. Automating IGST Purchase Postings

Typing in out-of-state invoices manually, checking state codes, and selecting the correct IGST split takes up valuable accounting time.

**TrulyInvoice** automates this routing. Our AI reads the supplier's GSTIN prefix directly from the PDF invoice, determines their registration state, verifies the Place of Supply, selects the matching IGST ledger in Tally, and syncs the completed F9 purchase voucher over Port 9000 with zero manual ledger settings.

Frequently Asked Questions