How to Update New GST Rates in TallyPrime – Step-by-Step Guide for 2025

Sep 11, 2025

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in Finance and Accounting, Tally ERP 9 Training

With recent changes in GST rates across India, businesses must ensure their accounting and invoicing software reflects the updated rates. TallyPrime, being one of the most widely used accounting solutions, allows users to quickly update GST rates for ledgers, stock items, and stock groups.

This guide explains how to update new GST rates in TallyPrime, with examples, tables, and FAQs to make the process seamless for businesses.

Why Updating GST Rates in TallyPrime Is Important

Ensures accurate billing and GST calculations.
Prevents tax compliance errors while filing returns.
Helps businesses adjust pricing based on new tax slabs.
Keeps accounting records consistent with government notifications.

Step 1: Enable GST in TallyPrime

Open your company in TallyPrime.
Press F11: Features → F3: Statutory & Taxation.
Set Enable Goods and Services Tax (GST) to Yes.
Configure your GST Type (Regular/Composition) and State details.
Press Ctrl + A to save.

✅ Tip: If GST is already enabled, skip this step and directly update the rates.

Step 2: Update GST Rates for Ledgers

Go to Accounts Info → Ledgers → Alter.
Select the ledger (e.g., “IPL Ticket Sales”, “Product Sales”).
In the GST Details section:
- Set GST Applicable to Yes.
- Select Tax Type: CGST/SGST or IGST.
- Update the Rate of Tax to the new GST rate (e.g., 40%).
Press Enter to save.

Step 3: Update GST Rates for Stock Items

Go to Inventory Info → Stock Items → Alter.
Select the stock item to update.
In GST Details:
- Set GST Applicable to Yes.
- Update the Rate of Tax to match the new GST slab.
Press Ctrl + A to save.

Step 4: Update GST Rates in Stock Groups (Optional)

Go to Inventory Info → Stock Groups → Alter.
Select the stock group and update GST Details.
Save changes to apply GST rates to all items in the group.

✅ Tip: This is useful if multiple items share the same GST rate.

Step 5: Verify GST Updates in TallyPrime

Check Area	How to Verify	Purpose
Ledger Invoice	Create a sample sales invoice	Ensure correct GST is applied
Stock Item Invoice	Create invoice using updated stock item	Check GST calculation
GST Reports	Display → Statutory Reports → GST Reports	Confirm updated rates reflect in reports

Step 6: Bulk Update GST Rates

Go to GST Rate Setup → Select Multiple Ledgers/Stock Items.
Press Alt + S: Update GST Details.
Choose Specify Details or Predefined GST Classification.
Set Effective Date and save with Ctrl + A.

✅ Tip: Backup your company data before bulk updates to prevent errors.

Common Scenarios and Examples

Scenario	Old GST Rate	New GST Rate	Impact
IPL Tickets	28%	40%	Price increases, invoices need updating
Cement	28%	18%	Reduced tax, billing adjustments required
Solar Panels	18%	5%	Reduced tax, customer invoices reflect lower GST
Digital Services	18%	18%	No change, verify correct ledger classification

FAQs – Updating GST Rates in TallyPrime

Q1. Can I update GST rates for multiple items at once?
A: Yes, using the Bulk Update / GST Rate Setup option, you can change rates for ledgers, stock items, or stock groups simultaneously.

Q2. Do I need to update past invoices?
A: No. The new GST rates apply only to transactions on or after the effective date of the change.

Q3. What happens if I don’t update GST rates?
A: Incorrect GST will lead to tax compliance errors, potentially causing penalties during GST return filing.

Q4. How do I ensure the new GST rates are applied correctly?
A: Generate sample invoices and review GST Reports in TallyPrime to confirm accurate tax calculation.

Q5. Can I update GST rates for stock groups instead of individual items?
A: Yes. Updating stock groups automatically updates the GST for all items within the group, saving time.

Conclusion

Updating GST rates in TallyPrime is crucial for compliance and accurate invoicing. Whether it’s IPL tickets at 40% GST, solar panels at 5%, or cement at 18%, TallyPrime provides easy options to update rates for ledgers, stock items, and groups.

By following this step-by-step guide, businesses can ensure: