Recording purchase inward supply with applicable GST in TallyPrime is very important because it directly affects the Input Tax Credit (ITC) available to the taxpayer. If a purchase transaction is recorded incorrectly in Tally, the taxpayer may lose the eligible ITC on such goods purchases. Therefore, every Tally user should clearly understand how to record goods purchase transactions with proper GST configuration in TallyPrime so that ITC can be reported accurately in the GSTR-3B return.
Before learning how to record goods purchases with GST in Tally, it is important to understand a few basic concepts related to purchase transactions. Whenever a purchase invoice is received from a supplier, the taxpayer should first verify some essential details mentioned on the invoice. Proper verification of these details helps ensure compliance and avoids future GST-related issues.
Important details to verify on a purchase
invoice:
- Supplier
Details:
Verify the supplier’s name, address, and GSTIN carefully. If the supplier’s GSTIN is missing on the invoice, the document may be treated as an invalid invoice, and the buyer may not be eligible to claim ITC. - Buyer/Recipient
Details:
The buyer’s name, address, and GSTIN should also be correctly mentioned on the invoice. Incorrect or missing buyer GST details can create problems while claiming Input Tax Credit. - Title
of Invoice:
Since GST has been charged on the bill, the document title should be clearly mentioned as a Tax Invoice. Otherwise, the invoice may not be considered a valid GST document. - Inventory
Details:
Proper details of goods should be available on the invoice, including stock item name, HSN Code, quantity, rate, and total amount. - Tax
Details:
Applicable GST should be charged correctly based on the nature of supply. The invoice should also contain proper tax analysis and HSN-wise tax breakup details. - Signatory
Details:
It is always advisable to verify whether the invoice is signed manually or digitally by the supplier. Maintaining properly authorized invoices is a good accounting practice.
Once all the above details are verified correctly, the
taxpayer can proceed to record the purchase transaction in Tally. If any
information is missing or incorrect, the buyer should immediately request the
supplier to issue a corrected invoice before recording the transaction.
To understand the process in a practical manner, let
us take the following example for detailed analysis:
Example:
YRS Enterprises, located in Mumbai, Maharashtra, purchased 50 units of Asian
Paint Tractor Emulsion – Grey White 10LTR at ₹7,500 from AZARA INDIA, also
located in Mumbai. The HSN Code mentioned for the product is 3208, and
GST is applicable at 18%. The supplier issued Tax Invoice No. AZ256/2627
dated 30th April 2026, with a credit period of 7 days.
Explanation:
To record this transaction properly in TallyPrime, the following points should
be identified and verified:
- Identification
of Supplier Details
- Verification
of Invoice
- Receipt
of Goods
- Applicable
Tax and Nature of Supply
Now, let’s start understanding how to record this
goods purchase transaction with GST in TallyPrime step-by-step.
Step 1: Navigate to the
Purchase Voucher screen in TallyPrime by following the path:
Gateway of Tally → Vouchers → F9: Purchase.
After opening the Purchase Voucher screen, press Ctrl
+ H to change the voucher mode and select Item Invoice Mode for
recording the goods purchase transaction with inventory and GST details.
Step 2: Update
Supplier’s Invoice No and Date
Note: The Voucher Date
and Supplier’s Invoice Date may differ in practical situations. For example, a
supplier may issue an invoice dated 20th April, but the goods may actually be
received by the buyer on 30th April. In such cases, the buyer can record the purchase
voucher in TallyPrime with the voucher date as 30th April while still
mentioning the supplier’s original invoice date as 20th April. However, in the
above example, we are considering a common date for simplicity, assuming that
the invoice was raised and recorded on the same day.
Step 3: Select
Party ledger (Supplier) from the list
Important Note:
Ensure that the supplier ledger master is created and updated correctly in
TallyPrime, including accurate details such as supplier name, address, and
GSTIN, as these details directly affect GST reporting and Input Tax Credit
eligibility.
Step 4: Update Goods Receipt details if applicable
Step 5: Verify Party Details
Before proceeding further, ensure that all supplier
details are updated correctly under the Party Details section in
TallyPrime. Proper verification of these details is important for accurate GST
calculation and return reporting.
The following details should be checked carefully:
- State
of Supplier
Verify that the supplier’s state is selected correctly, as it helps determine whether the transaction is intra-state or inter-state. - GST
Registration Type and GSTIN
Ensure that the supplier’s GST Registration Type and GSTIN are entered correctly to maintain valid GST compliance and Input Tax Credit eligibility. - Place
of Supply
Verify the Place of Supply based on the buyer’s location, as it determines the nature of supply and the applicable taxes such as CGST & SGST or IGST.
Step 6: Now Select
Purchase Ledger
Important note:
Please make sure purchase ledger master configured correctly as displayed below
Step 7: Select
Stock Item from the list
Make sure stock item master configured correctly with proper GST details as below
Step 8: Update Quantity
and rate details
Step 9: Verification of GST Rate and
Related Details
At this stage, GST-related details are automatically
populated in TallyPrime based on the configuration of the Stock Item Master
and Party Ledger Master. Therefore, it is important to verify that all
GST information is updated correctly before saving the transaction.
The system generally auto-updates details such as:
- Taxability
Type
- Nature
of Transaction
- Applicable
GST Rate
- HSN/SAC
Details
- Type
of Supply and Tax Calculation
Carefully reviewing these details helps ensure accurate GST calculation, proper Input Tax Credit reporting, and correct reflection of the transaction in GST returns.
Step 10: Apply GST on the Transaction
Based on the nature of the transaction, select the
appropriate GST tax ledgers in TallyPrime. Since this example relates to an intra-state
inward supply of goods, the applicable taxes will be Input CGST and Input
SGST. Therefore, both tax ledgers should be selected to record the GST
portion of the purchase transaction correctly.
GST amount will be
automatically calculated on the transaction if GST ledgers configured correctly
as below
Step 11:
Verification of GST
We can verify the
transaction with GST details if correct tax applied on the transaction, press
CTL+O to access Related report
Select GST- Tax
Analysis Report
Press ALT+F5 to
view report in detailed format
After applying the GST ledgers, a detailed tax
analysis report will be displayed in TallyPrime showing important transaction
details such as nature of supply, taxable value, GST rate, tax amount, and
total invoice value. Carefully verify these details to ensure that the
transaction has been recorded with correct GST treatment.
Step 12: Bill Details, Narration, and
Acceptance of Transaction
At the final stage, verify and update the bill-wise details such as bill reference number, bill type, and due date wherever applicable. You may also enter a proper narration for future reference and audit purposes. After reviewing all transaction details carefully, accept and save the purchase voucher to complete the recording of the transaction.
Transaction
recorded successfully.
Post recording this transaction we can verify the GSTR3B return report for Input Tax Credit
Press ALT+G to
access Go to Report
Type GSTR3B Return
To verify this purchase
transaction input tax credit navigate to table no 4-A Input Tax Credit
Available
After recording the purchase transaction, the taxpayer can verify the same under the Input Tax Credit (ITC) section of the GSTR-3B report in TallyPrime. Proper reflection of the transaction in the return confirms that the purchase entry, GST configuration, and tax ledgers have been recorded correctly in TallyPrime.
By following the above process carefully, users can
record purchase transactions accurately with proper GST treatment, minimizing
the chances of errors in GST returns and ensuring smooth Input Tax Credit
reporting. Correct configuration of masters, verification of invoice details,
and proper tax selection play a very important role in maintaining accurate GST
compliance and accounting records.
For any support, guidance, or queries related to
TallyPrime and GST, feel free to reach us at reliable011990@gmail.com
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