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GST Not Calculated Automatically

GST may not get calculated automatically when there is an issue with configuration, ledger selection, or transaction details. Such cases can be resolved by identifying the exact cause and correcting it.

Note that setting up GST Rate details correctly in the required masters ensures that your transactions are recorded with the correct tax amount and they reflect correctly in the Returns. To learn more, refer to the topics Set Up GST Rate and HSN/SAC Details and Update GST Rates Using the GST Rate Setup Report in TallyPrime.

 TallyPrime Release 3.0 and Later

Source of GST and HSN/SAC Details

Cause

If GST rate and HSN/SAC details are defined in multiple masters (such as ledger and stock item), TallyPrime may pick the GST rate from a different source than expected. This can lead to a difference in the expected and actual GST amount.

Resolution

1. Identify the source of GST rate
   1. Open the voucher and press Alt+A (GST – Tax Analysis).
   2. Press Alt+F5 (Detailed).
   3. Check whether GST rate is picked from the ledger or the stock item.
      
2. Update GST details in the required master
   1. Decide whether GST should be applied from the stock item or the ledger. Refer to HSN/SAC & GST Rate Hierarchy in TallyPrime to learn more.
   2. If using stock item, ensure the correct GST rate and HSN/SAC details are defined in the stock item, and remove GST details from the ledger.
   3. If using ledger, ensure the correct GST rate is defined in the ledger, and remove GST details from the stock item.
3. Record the transaction again
   1. Re-record the voucher by selecting the altered stock item and ledger.

This will ensure that GST is calculated based on the correct source.

Incorrect Place of Supply or GST ledger selected

Cause
If Place of Supply and GST ledger do not match, GST will not be calculated correctly. For example, selecting IGST for a local transaction or CGST/SGST for an interstate transaction.

Resolution

1. In the Voucher Creation/Alteration screen, press Enter on the Party A/c Name.
2. Press Ctrl+A to save the Dispatch Details screen.
   The Party Details screen appears.
3. Enter the correct Place of Supply, and press Ctrl+A to save.
   
4. Select the GST Ledgers.
   1. Intrastate or Local Place of Supply: Select the SGST and CGST ledgers.
      The taxes get calculated.
   2. Interstate Place of Supply: Select the IGST ledger.
      The tax gets calculated.
5. Press Ctrl+A to save the voucher.

Incorrect GST Rate in Taxes and Duties Ledger

Cause

If GST rates are specified in the tax ledger as well as the stock item, it creates a conflict and GST may not be calculated.

Resolution
Use common GST ledgers without specifying tax rates, so that GST is picked from the stock item.

1. In the Voucher Creation/Alteration screen, identify the source of GST rates.
   1. Press Alt+A to view GST-Tax Analysis.
   2. Press Alt+F5 (Detailed).
      You can view GST rates of the respective stock items.
      
   3. Press Esc.
2. Select GST ledger in which you have not specified the respective GST rates.
3. Press Ctrl+A to save the voucher.

Assessee of Other Territory Enabled

Cause

If the party is marked as Assessee of Other Territory, only IGST is applicable. Selecting CGST/SGST will result in no tax calculation.

In such cases, there can be two scenarios – incorrect GST ledger or ledger accidentally configured as assessee of other territory.

Resolution

Incorrect Ledger

Use the correct GST ledger, IGST, during voucher creation, and GST gets calculated.

Ledger accidentally configured as Assessee of Other Territory

1. Press Alt+G (Go To) > Alter Master > type or select the Ledger, and press Enter.
2. Set Assessee of Other Territory as No.
   
3. Press Ctrl+A to save the screen.

Thereafter, you can select the SGST and CGST ledgers in the voucher, and GST will get calculated.

GST ledger created under Indirect Expenses

Cause

If GST ledger is created under Indirect Expenses instead of Duties & Taxes, GST will not be calculated.

Resolution

1. Press Alt+G (Go To) > Alter Master > type or select the tax Ledger and press Enter.
2. Under: Duties & Taxes.
3. Press Ctrl+A to save the ledger.
   

   

4. Re-record the transaction with the altered ledger.

Ledger or Stock Item configured for RCM

Cause

If the ledger or stock item is marked for Reverse Charge, GST will not be calculated in the invoice, as the buyer is liable to pay tax.

Resolution

1. Alter the Sales Ledger/Stock Item used in the voucher, and set Applicable for Reverse Charge to No.
2. As always, press Ctrl+A to save.  
3. Reselect the Ledger and Stock Item in the Sales voucher for calculating GST.

TallyPrime Release 2.1 and Earlier

Tax Ledger Mismatch in Invoice

Cause 1

If incorrect GST ledgers are selected in the invoice, GST will not be calculated correctly based on the nature of transaction.

Resolution 1

In the Voucher Creation/Alteration screen:

1. Open the invoice and verify the GST ledgers.
2. Press Ctrl+O (Related Reports) > GST – Tax Analysis to check the tax type.
3. Select the applicable tax ledgers: IGST for interstate; CSST & SGST for local.
4. Press Ctrl+A to save the voucher.

Cause 2

If the nature of transaction is manually changed, the selected GST ledger may not match the transaction type, and GST may not get calculated.

Resolution 2

Ensure that the GST ledger matches the selected nature of transaction.

In the Voucher Creation/Alteration screen:

1. Check the Nature of Transaction in GST Details.
2. If changed (for example, intrastate to interstate), update the GST ledger accordingly.
3. Select the applicable tax ledgers: IGST for interstate; CGST & SGST for local.
4. Press Ctrl+A to save the voucher.

Conflicts Due to HSN Code and Tax Rates Defined in Different Masters

Cause 1

If HSN is defined in the ledger and GST rate in the stock item, TallyPrime may not consider both correctly, leading to incorrect GST calculation.

Resolution 1

Define HSN and GST details in the same master based on your requirement.

• To use details from the ledger, define both HSN and GST rate in the sales/purchase ledger.

• To use item-wise details, remove HSN from ledger and define both HSN and GST rate in the stock item or stock group.

Cause 2

If HSN and GST rates are defined differently in both ledger and stock item, it creates a conflict.

Resolution 2
Ensure consistency in HSN and GST details.

• Define HSN and GST rate in only one master, or, maintain the same HSN, GST rate, and applicability dates in both ledger and stock item.

Cause 3

If different HSN or GST rates are defined with mismatched applicability dates, GST may not be calculated correctly.

Resolution 3
Provide the correct HSN, GST rate, and applicability dates for each change in tax rate so that the system picks the right values.