GST Rate Change: How To Update GST Rates In Tally For Accurate Billing

GST rates often change, and keeping them updated in Tally is important for compliance and error–free invoicing. Here’s how to apply GST Rate updates in Tally and why it is important for many reasons:

• Error-Free Billing: Correct GST rates Make sure invoices are accurate for both e-invoicing and billing. Wrong or inaccurate rates can cause errors and problems while auditing.
• Compliance with New Regulation: India has updated its GST system, such as tax rate slabs. Therefore, businesses must add new rates in their system to comply with tax regulations and to avoid penalties.
• Avoiding Penalties and Consequences: Incorrect GST rates may attract penalties, interest charges, and other legal consequences such as fraud or significant discrepancies. Keeping correct rates reduces risk of penalties and consequences.
• Faster Return Filing: Keeping GST rates updated will help in faster return filing as it will help Tally to make correct reports which will eventually help in faster and accurate result.
• Smooth Input Tax Credit (ITC) Handling: Keeping updated GST rates in system results in correct calculation of ITC. However, conflicting results can lead to incorrect ITC claims.

Following is the step-by-step guide to update GST rates in Tally:

Step 1: Go to GST Rate Setup in Tally and select the Item or Ledger for which the GST rate has been configured.

Step 2: Use the Spacebar key to select the items you want to change/update.

Step 3: To open the Update GST Details screen, press Alt + S.

Step 4: Enter HSN details and select ‘No.’

Step 5: Fill in GST rate details and select ‘Yes‘ to update the rate.

Step 6: Enter the specified details and set the rate in the GST Rate Details section.

Step 7: Specify the Applicable From date to indicate when the new GST rate comes into effect, i.e., September 22, 2025.

Step 8: Confirm and save the changes to ensure the new GST rate is applied in Tally.