To create a VAT ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
Enter the Name of the VAT ledger.
Select Duties & Taxes in the Under field.
Select Types of Duty/Tax as VAT.
Set Use for Purchase Tax to No.
The Ledger Creation screen appears as shown below:
Press Enter to save.
Similarly, create a CST ledger under Duties & Taxes, by selecting CST in Type of Duty/Tax.
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