For every GST-registered business in India, accurate reporting of HSN (Harmonized System of Nomenclature) codes and GST rates for stock items is essential for compliance and audit readiness. Tally Prime makes this process simple through in-built reporting tools that allow users to analyze inventory according to HSN codes and applicable GST rates.
In this comprehensive guide, we’ll explain how to check HSN- and GST-rate-wise stock items in Tally Prime, how to configure them correctly, and how to generate analytical reports to ensure your filing and reporting are accurate.
This article will cover step-by-step instructions, tables for easy reference, and important tips for smooth GST management in Tally.
What Are HSN Codes and Why Are They Important?
HSN (Harmonized System of Nomenclature) is a globally accepted system for classifying goods under a standardized structure. In India, it helps determine the GST rate applicable to specific products.
| HSN Digits | Applicability | Description |
|---|---|---|
| 4 digits | Businesses with turnover below ₹5 crore | Used for B2C and small-scale reporting |
| 6 digits | Businesses with turnover above ₹5 crore | Used for B2B and export reporting |
| 8 digits | Used for international trade | Highly detailed classification |
Example:
- HSN for Computers: 8471
- HSN for Steel: 7208
- HSN for Plastic Goods: 3923
Using accurate HSN codes ensures proper GST filing, invoice accuracy, and reduced chances of penalties during audits.
Step-by-Step: How to Enable and View HSN & GST Rate-Wise Stock Items in Tally Prime
Let’s go through a complete walkthrough of how to check and analyze GST-related stock details in Tally.
Step 1: Enable GST in Tally Prime
Before viewing HSN or GST rate reports, GST must be enabled in the company settings.
Path:Gateway of Tally → F11 (Features) → Statutory Features → Enable Goods and Services Tax (GST) → Yes
Then, set the following:
- Set/alter GST details: Yes
- Enable HSN/SAC details: Yes
Once enabled, enter your GSTIN, registration type, and state.
Step 2: Assign HSN and GST Rate to Each Stock Item
To view stock reports by HSN or rate, you need to configure each item properly.
Path:Gateway of Tally → Inventory Info → Stock Item → Alter/Create
Now, enter the following details under Statutory Information:
- HSN Code: (Example – 8471)
- GST Rate: (Example – 18%)
Repeat this for each product in your stock list.
Tip: You can also use the “Copy HSN from Stock Group” feature if multiple items belong to the same category.
Step 3: Record Sales and Purchase Transactions
After HSN and GST setup, record regular Sales and Purchase vouchers with proper stock items.
Tally automatically tracks HSN, tax rate, and tax amount for each entry.
Example Transaction:
| Item Name | HSN Code | Quantity | GST Rate | Value (₹) |
|---|---|---|---|---|
| Laptop | 8471 | 2 pcs | 18% | 80,000 |
| Mouse | 8471 | 10 pcs | 18% | 5,000 |
| Printer | 8443 | 1 pc | 18% | 10,000 |
Step 4: Generate HSN Summary Report
To view HSN-wise details for all stock items:
Path:Display More Reports → Statutory Reports → GST → HSN/SAC Summary
This report displays data for sales and purchases grouped by HSN.
Report Fields:
| Field | Description |
|---|---|
| HSN Code | Code linked with stock item |
| Description | Product/Service name |
| UQC | Unit Quantity Code (e.g., Nos, Kg, Ltr) |
| Total Value | Value of goods sold/purchased |
| Taxable Value | Amount subject to GST |
| Integrated, Central, State Tax | Detailed GST breakup |
Tip: Use Alt + F12 (Range Filter) to display data for specific months or transactions.
Step 5: View GST Rate Wise Stock Report
If you wish to see stock items grouped by GST rate rather than HSN:
Path:Display More Reports → Statutory Reports → GST → Rate-wise Analysis
This report groups all stock items under 0%, 5%, 12%, 18%, and 28% GST slabs.
| GST Rate | Items Included | Taxable Value (₹) | Total GST (₹) |
|---|---|---|---|
| 0% | Books, Food Items | 12,000 | 0 |
| 5% | Essentials | 18,000 | 900 |
| 12% | Appliances | 40,000 | 4,800 |
| 18% | Electronics | 95,000 | 17,100 |
| 28% | Luxury Goods | 15,000 | 4,200 |
This report is especially useful for:
- Checking compliance with GST slabs
- Detecting incorrect item categorization
- Preparing data for GSTR-1 filing
Step 6: Drill Down to Item-Wise and Voucher-Wise Details
From the HSN Summary or Rate-Wise Report, press Enter on any line to open Item-Wise Analysis.
You can view:
- Item name and stock quantity
- Voucher references
- Party name
- GST breakup (CGST, SGST, IGST)
This helps cross-verify your sales and purchase data before filing GST returns.
Step 7: Export the Report for Analysis or Filing
You can export the HSN Summary or Rate-wise Report to Excel or PDF for easy sharing.
Path:Alt + E → Export → Excel / PDF / HTML
This exported file helps in:
- Reconciliation with GST portal data
- Sharing details with accountants
- Maintaining audit trail
Example Report View in Tally (Summary Table)
| HSN Code | Description | GST Rate | Taxable Value (₹) | CGST (₹) | SGST (₹) | IGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|---|
| 8471 | Computers & Accessories | 18% | 85,000 | 7,650 | 7,650 | 0 | 100,300 |
| 8443 | Printers | 18% | 10,000 | 900 | 900 | 0 | 11,800 |
| 3923 | Plastic Goods | 12% | 20,000 | 1,200 | 1,200 | 0 | 22,400 |
| 7208 | Steel Products | 18% | 15,000 | 1,350 | 1,350 | 0 | 17,700 |
Common Issues and Solutions
| Issue | Possible Reason | Solution |
|---|---|---|
| HSN not appearing in report | HSN not set for item | Edit stock item and assign correct HSN |
| GST rate mismatch | Wrong rate setup | Check “Taxability” in item setup |
| Tax calculation not showing | GST not enabled | Enable GST in Statutory Features |
| Items grouped incorrectly | Missing classification | Reclassify items under correct stock groups |
Additional Tips for Accuracy
- Regularly Update HSN Codes: GST Council occasionally revises codes. Always keep your item list current.
- Use Stock Groups for Bulk Assignments: Assign HSN and tax rates at group level for efficiency.
- Cross-Verify Tax Reports: Compare Tally’s HSN summary with GSTR-1/3B filings for accuracy.
- Backup Data Monthly: Keep secure backups for each return period.
- Audit with Range Filter: Use date filters to check monthly or quarterly HSN transactions.
Benefits of Using HSN & GST Rate Reports in Tally
| Benefit | Description |
|---|---|
| Compliance | Ensures correct tax filing and avoids penalties |
| Transparency | Easy visibility of stock and tax classification |
| Reporting | Simplifies preparation for GST returns |
| Accuracy | Detects incorrect item coding |
| Efficiency | Saves manual effort during reconciliation |
Conclusion
Checking HSN and GST rate-wise stock items in Tally Prime is not only useful for compliance but also crucial for business accuracy. With features like HSN Summary, Rate-wise Analysis, and Voucher Drill-Down, you can track every item’s tax classification and value in just a few clicks.
By properly setting up HSN codes and GST rates for each stock item and using analytical reports regularly, you can ensure 100% accuracy in your GST filings and inventory management.
Disclaimer:
The data, tax rates, and report examples shared in this article are for educational purposes only. GST rates and Tally versions may change periodically. Users are advised to verify the latest updates in Tally Prime and the official GST notifications before implementation.