To create a stock item
Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
Enter the Name of the stock item.
Select the required group in Under field.
Select the required unit of measurement in Units field.
Enable the VAT Applicable option.
Set the option Set/Alter VAT Details? to Yes.
Click F12: Configure.
Enable Allow commodity details, and Allow Inclusive of Tax, if required.
Based on the requirement, create the classification as per the procedure given in Creating Classifications topic or select from the list of predefined classifications or set it to Not Applicable
Enter Commodity Name, Main Commodity Code and Sub Commodity Code.
Enter the Tax Rate. If the tax rate is:
Press Enter to save the VAT Details screen.
Press Enter to save.