Company GST Set Up – Special Set Up Process -

Last Updated on: 30th July 2026, 01:06 pm

Company GST Set Up – Special Set Up Process

In earlier chapter, we have discussed Basic details for Company GST Set Up process in Tally Prime 7, are applicable to all registered organisations, in general. In this chapter, we discuss additional set up process (apart from the Company GST Basic Set Up (discussed in previous chapter), applicable for some specific organisations only.

Assessee of Other Territory

This option is set for businesses operating in regions that do not fall under the jurisdiction of any specific Indian State or a Union Territory with its own legislature.

At GST Details screen, Set Yes when the business is located in an “Other Territory” (e.g., Exclusive Economic Zone), otherwise set No.

Explanations

Meaning and Purpose : Under GST law, certain areas are classified as “Other Territory” (often associated with State Code 97). This field is set to Yes if the business registration is located in these specific geographical zones. The primary purpose is to ensure that the software correctly applies UTGST / (Union Territory GST) / CGST (rather than SGST – State GST).
Examples of ‘Other Territories’
- Exclusive Economic Zone (EEZ): A business operating an offshore oil rig or performing seabed mining, located in the sea, within India’s jurisdiction, but beyond the 12-nautical-mile limit of any coastal state.
- Territorial Waters: Businesses providing services or supplying goods on ships or installations located in the high seas within Indian territorial waters, that are not part of any landlocked state.
- Specific Union Territories: In some contexts, it may apply to certain Union Territories without a separate legislature where “Other Territory” rules apply for tax collection.

Enable this option only when the GST registration explicitly identifies the organisation as an assessee of Other Territory.

Applicability to customer or supplier (Parties): This option is set up at Company GST Set Up. If the organisation customer or supplier is located in “Other Territory,” this option must be set up at respective customer or supplier (Party) ledger. In a transaction with such Party, Tally correctly calculates the tax as an interstate or “Other Territory” supply, complying to GST rules.

Connected GST Details

Connected GST Details set up links accounting software and the government’s GST portal, to communicate directly with the portal for various statutory tasks.

Connected GST details

Set the options to directly establish connection with the GST Portal, for filing and upload/download of returns and reconciliation directly from Tally. Before setting this up in Tally, enable API requests on GST Portal.

GST Username: Enter the user name as registered on the GST Portal.
Mode of Filing: Choose between DSC (Digital Signature Certificate) or EVC (Electronic Verification Code), as applicable

Explanations

Before configuring TallyPrime, enable API requests for GSTIN/UIN on GST Portal. Now set the following options.

GST Username : The specific Business username created and registered on GST portal, It acts as the primary identification for the connection. Tally uses this username to tell the portal which specific tax account it is attempting to access for data exchange. Only the username is stored in Tally’s configuration; for security, It will ask for password or an OTP (depending on the portal’s current session rules) at the time initiating a connection .

Example : When a business wants to download GSTR-2A or2B data directly for month-end reconciliation, the software uses this username to fetch the correct data from the portal.

Mode of Filing: To select the method used to verify and sign tax returns- viz, DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
It defines the legal verification protocol Tally will follow when you are ready to file a return.
- DSC is typically used by companies and LLPs where a digital signature is mandatory.
- EVC is common for individuals and proprietorships that use an OTP sent to a registered mobile number for verification.

Selecting the correct mode to ensure that Return is filed, the software triggers the correct verification process (e.g., prompting for a DSC pin or an EVC OTP).

Example : If an organization is filing its GSTR-1 directly through TallyPrime, selecting “DSC” ensures the software knows to look for the connected USB token to sign the return before submission.

Connected Details – Use Cases

Configuring connected details transforms TallyPrime from a standalone accounting tool into a connected compliance hub. Key use cases:

Easy Filing: Uploading, downloading, and filing GST returns directly from the software without manually export JSON files and upload them to the portal.
Online Validation: Enables validation of GSTIN/UIN of customers/ suppliers and checking the validity of HSN/SAC codes directly against the government database.
IMS Reconciliation: Specifically in TallyPrime 7 and later, these details facilitate the Invoice Management System (IMS) reconciliation, allowing you to match books with portal data and mark vouchers as ‘Accepted’ directly from your screen.

These settings are particularly useful for Multi-GSTIN organizations. Configure separate usernames and filing modes for each of branches/registrations within the same company file, ro ensure each branch remains compliant with its specific portal credentials

Enabling API Access

Before configuring the Connected GST Details in TallyPrime 7, it is essential to enable API Access on the government’s GST Portal. Without this authorization, TallyPrime cannot establish a secure communication channel with the portal to exchange data.

Enabling API Access – Meaning

API (Application Programming Interface) access is a permission setting on the GST Common Portal. By enabling it, the taxpayer officially authorizes third-party accounting software like TallyPrime to securely “talk” to the portal’s database. It acts as a digital bridge that allows the software to pull information (like GSTR-2B data) or push information (like GSTR-1 filings) directly.

Enabling API Access – Purpose

Connected Services setting facilitates to automate manual compliance tasks:

Data Exchange: Direct upload, download, and filing of returns. No need for manual export / import of JSON files.
Real-time Reconciliation: To fetch latest portal data for matching books with GSTR-2A/2B, marking invoices in the Invoice Management System (IMS).
Online Validation: Instantly validate GSTIN/UIN and HSN/SAC details against government’s live database.

API Access Enabling – Steps

Set API access on the GST Portal (www.gst.gov.in), through following steps :

Log in to the GST Portal using your valid credentials.
Go to Taxpayer Dashboard, click name/profile, select View Profile. At “Manage API Access” section, (usually under the ‘Quick Links’ or ‘Settings’ tab), set Yes at “Enable API Request”.
Select the duration for which the API session should remain active (e.g., 30 days).
Save the settings. After confirmation, the portal is ready to accept connection requests from TallyPrime using registered GST Username.
For Multiple GST Registrations within one Tally company, API access should be enabled on the portal for each specific GSTIN to be used for connected services.
After enabling on the portal, fill in the GST Username and Mode of Filing (DSC or EVC) in TallyPrime’s GST Details screen.

e-Invoice & e-Way Bill set up

For certain organisations, it is mandatory to issue e-Invoice / e-way Bill

At ‘e-Invoicing Applicable’, set Yes if the turnover exceeds the government-mandated threshold (currently 5 crores), and set as follows:

Applicable From: The date from which e-Invoicing becomes mandatory for the organisation.
Bill From Place: The primary business location from which e-invoices are generated.

At ‘e-Way Bill Applicable’, set Yes for transporting goods, and set as follows:

Applicable for Intrastate: Set Yes if e-Way Bills to be issued for deliveries within the state (mandated in some states).
Threshold Limit: The value above which an e-Way Bill must be generated. The threshold limit to be set as follows :

e-Way Bills Threshold limits set up.

Further, set up e-Way Threshold limits. Click F11:Features and set Yes at Company GST Rates & other Details, and set the threshold limit as follows:

e-Way Bills Threshold limits set up.

E-Invoicing / e-way Bills Details set up – Explanations

Applicable From : It is the specific date from which TallyPrime will begin prompting to generate e-invoices. It identifies the start date of e-invoicing liability as per government mandates. Transactions recorded prior to this date do not trigger e-invoice requirements, preventing errors in older data.

Examples :

Government Mandate: If company’s annual turnover exceeds the threshold (e.g., ₹5 crores) and the government mandates e-invoicing starting from April 1st, 2025, then set this date to 1-Apr-2025.
Mid-Year Setup: While migrating accounting data to Tally Mod Year, (e.g to on July 1^st), even if the organisation were already e-invoicing elsewhere, set the date to 1-Jul-2026 in Tally to manage e-invoicing exclusively from the date accounting in Tally started using the software.

Bill From Place : This field identifies the primary location from the goods are dispatched or where services are billed. It is used for the e-invoice schema (JSON file sent to the GST portal), indicating the city or location of the billing office.

Examples:

Single Location Business: A manufacturer operating in a single factory (e.g Jaipur) will enter the fcatory place (e.g”Jaipur” ) in this field. Every e-invoice generated will then automatically carry this palce (i.e.”Jaipur”) as the billing origin.
Multi-GSTIN Organizations: For organizations having multiple GST registrations for different branches (e.g., a Bengaluru branch and a Mumbai branch), configure the “Bill From Place” specifically for each registration (e.g . for the Bengaluru registration, the “Bill From Place” would be set as Bengaluru), so that invoices from that branch are correctly identified on the portal.

These settings are configured at the company level. Multiple GST Registrations may be managed within a single company, allowing each branch to have its own “Applicable From” Date and “Bill From Place”

LUT / Bond Details

LUT/Bond Details set up is used by organisations engaged in international trade or supplies to tax-exempt zones, in relation to LUT / Bond (Letter of Undertaking/ legal agreement (often backed by a bank guarantee) submitted to the GST department.

These documents allow a registered taxpayer to export goods or services, or supply them to a Special Economic Zone (SEZ), , as “Zero-rated,” (zero tax) invoice, without upfront Integrated Tax (IGST) payment.

LUT / Bond Details

At GST Details screen, Click F12:Configure. In LUT/Bond Details subform, set as follows

Specify ‘Applicable from’ and ‘Applicable to’ dates
Enter LUT/Bond No. from the GST portal.

LUT/Bond Details – Explanation

Data Item Fields : Set Yes to the option to get a form to enter following specific details:

LUT/Bond No.: Unique identification number generated on the GST Portal after successfully filing the LUT (Form GST RFD-11) or after Bond is accepted by the jurisdictional officer.
Applicable From: The start date of the validity period for the LUT or Bond.
Applicable To: The expiry date of the document.

Typically, an LUT is valid for one financial year and must be renewed annually.

Implications for Accounting and Compliance

When these details are configured, the transactions are classified as “Export under LUT/Bond” or “Deemed Export under LUT/Bond” in GST returns (like GSTR-1). “Taxable Value” is recorded while the “Tax Amount” remains zero. LUT/Bond number and its validity may be printed in Invoice

Examples

Software Exports: A service provider in India offering coding services to a client in the USA. By filing an LUT and entering the details in TallyPrime, invoice may be raised without adding IGST.
Supply to SEZ: A manufacturing company located in the domestic tariff area (DTA), supplies raw materials to a unit located in an SEZ, as zero-rated. Enter the LUT details to process the transaction as zero-rated.
Merchant Exports: A trader who purchases goods locally and exports them, may use the LUT/Bond configuration to export without tax payment.

Note: Update the “Applicable To” date every financial year. Recording export transaction after expiry of LUT / Bond would cause potential compliance errors during filing.

GST Reconciliation Configuration

GST Reconciliation Configuration section helps businesses avoid mismatches when comparing internal accounting data with the GST portal records (such as GSTR-2A or GSTR-2B). These settings allow flexibility in matching, ensuring that minor differences do not lead to “unreconciled” transactions.

Select F11:Features. Set Yes at Set Company GST rates & other Details, and then click F12:Configure. These settings help internal books match the data on the GST Portal.

Use Voucher No. & Date as Supplier Invoice No. & Date: Set this if you do not manually enter supplier invoice details during purchase entry.
Ignore Zero (0) in Supplier Document No.: To match invoices if the supplier uses leading zeroes omitted in books.
Ignore Special Characters in Document No.: Prevents mismatches caused by slashes (/) or hyphens (-).
Ignore Difference in Taxable Amount: Focuses the reconciliation Tax amount rather than minor differences in base taxable value.
Mark Reconciled Vouchers as Accepted in IMS: Automatically accepts matched invoices in the Invoice Management System.

GST Reconciliation Configuration – Explanations

Most of these options are available under F12 (Configure) within the GST Details screen

Use Voucher No. & Date as Supplier Invoice No. & Date : This option instructs Tally to automatically treat the internal voucher number and date of a purchase entry as the supplier’s invoice number and date. It simplifies the reconciliation process for businesses that do not manually capture separate supplier invoice details during entry.

Example : A small business that uses its own sequential numbering for all incoming bills and relies on those internal numbers for tracking rather than specific supplier-generated invoice IDs.

Ignore zero (0) in Supplier Document No. : Tally ignores leading zeros in the document number when matching data with the portal. This optionprevents mismatches caused by different data entry styles regarding document numbers.

Example: If a supplier’s invoice number is “000456” on the GST portal, but recorded in Tally as “456”, this setting ensures they are still viewed as a match.

Ignore special characters in Document No. :This setting specifies to ignore characters like hyphens (-) or slashes (/) during the matching process. This optionprevents reconciliation errors stemming from varied document formatting between books and the portal.

Example : A supplier files an invoice as “INV/2024-25/01,” but accountant records it as “INV-202425/01.” enabling this allows Tally to identify them as the same document.

Ignore difference in Taxable Amount : To reconcile transactions based on Tax Amount, even if the base taxable value differs slightly. This option focus on the tax compliance aspect of reconciliation, rather than minor differences in the base value. Base value difference is ignored and transaction marks as reconciled based on the matched tax amount.

Example : When a supplier’s software calculates a base taxable value of ₹10,000.49 while Tally records it as ₹10,000.50, but the GST amount is same.

Ignore difference in Books and Portal values (for Round-off) : This provides a threshold or tolerance for value differences between your records and the portal data. It allows automatically reconcile transactions that remain “unreconciled” solely due to small rounding differences, it is recommended to set an “Allow difference in value up to” limit (e.g., ₹1 or ₹10) and define whether it applies to taxable amounts, tax amounts, or the total invoice amount.

Example : If a transaction is unreconciled because the portal shows a total value of ₹500.20 and books show ₹500.00, setting a ₹1 threshold will allow Tally to match them automatically.

Ignore difference in Invoice Amount (for TDS/TCS) : This option focus on differences in the final invoice amount during purchase reconciliation, where additional statutory deductions or collections (like TDS or TCS) are recorded in books but not reflected in the GST portal’s invoice value. Such invoice would be reconciled based on the tax amount while ignoring the discrepancy in total invoice amount.

Example : A purchase invoice in books includes a TDS deduction, making the “invoice amount” lower than what the supplier reported on the GST portal. This setting ensures the record is still matched for GST purposes.

Mark Reconciled vouchers as Accepted in IMS : This option automatically updates the status of reconciled invoices in the Invoice Management System (IMS), by Auto accepting the matched entries.

Example : A business uses the connected services to manage portal actions directly. When Tally confirms a match, automatically the invoice is marked as “Accepted” in IMS also. No need to manually update on portal also.

Multiple GST activation

It applies tocompanies with multiple branches or units, having separate GSTINs (across different states or within same state), While returns are generated for each specific registration, all MIS reports remain consolidated for the entire Company.

Multiple GSTN Details set up

At GST details entry screen, at “Create another GST Registration for the Company“ set Yes.

Explanation

Multiple Company GST Registration option allows a single business entity to manage multiple GST identification numbers (GSTINs) within one company file. This feature enables “Multi-GSTIN” management, where a business with multiple branches, units, or registrations in different states (or even multiple registrations within the same state) can maintain all their records in a single Tally company.

It helps to centralize accounting while maintaining decentralized tax compliance. Instead of maintaining separate Tally companies for every branch, a business can record transactions for various registrations in one place, ensuring a unified view of the business.

TallyPrime auto-generates a default name based on the state (e.g., “Karnataka Registration”). This may be renamed to more descriptive as desired for easy identification.

Use Cases and Special Points

Create and maintain unique voucher numbering series for each registration, using multiple Voucher Types, Prefix and Suffix. all within the same company file.
GST returns (like GSTR-1 or GSTR-3B) may be generated specifically for each registration.
All Management Information System (MIS) reports remain consolidated at the company level.
If previously maintained separate Tally company files for different GSTINs, they may be merged into a single company, for better data management.
Configure unique Connected GST Details (Username and Filing Mode) for each registration, allowing direct portal communication for each branch independently.
Distinct registration may be linked to transaction, to apply tax rules and voucher numbering associated with respective GSTIN.

Enable GST advances for adjustment

The option allows businesses to track and offset tax liabilities on receipt of advance.

Enable GST Advance Adjustment

Click F11:Features, at Set/Alter Company GST Rate and Other Details, set Yes, to get GST Rate & Other details Screen. At Show GST Advances for adjustments in transaction, set Yes, and thenEnter the Applicable Date.

GST Advances for adjustments – Explanation

This feature enables tracking of GST liability at the time an advance is received from a customer, to progressively view and adjust previously received advances, even before the sales invoice is generated. This ensures that the tax already paid on the advance is correctly deducted from the total tax liability of the final invoice, preventing double taxation of same amount.

Applicable From Datespecifies the date from which TallyPrime will start considering advances for adjustment in sales vouchers. It is recommended to set a date that falls after the last return period in which GST reported.
Setting the date correctly ensures that the earlier, already-filed returns remain unaffected and consistent with past records.
If a date is set in the middle of a month for which returns are already filed, it could lead to discrepancies in tax liability reports for that period.

Example: A service provider receives ₹50,000 advance in May, for a project to be completed in June. It recorded it as ‘Receipt’ in May and taxed in May. The final invoice of ₹1,00,000 is raised in June, The ‘Show GST Advances for adjustments feature’ allows to adjust the ₹50,000 already taxed. So, tax on the balance of ₹50,000 only to be paid. If the option is not enabled, advance tax paid would not be progressively offset.

GST Reconciliation Difference

The features help to match and adjust the minor differences for various reasons.

GST Reconciliation of Difference Set off options

Click F11: Features. Set Yes at enable Goods & Services Tax to et GST Details screen.

Click F12: Configure to get GST Configuration screen

GST Reconciliation Difference Adjustment

Under the section Reconciliation Details, set the relevant options as detailed below.

a. Reconcile Transactions with Difference in Taxable Amount

If the taxable value differs from the portal, configure to reconcile transactions based on tax amount only.

In the GST Details screen, set Yes Ignore difference in Taxable Amount. Set the Effective Date for the revised GST details.
In the GSTR-2B Reconciliation report, F12 (Configure) > enable Match transactions by ignoring difference in Books and Portal values and configure the options as required.
- At ‘Allow difference in value up to’, enter the amount up to which you want to ignore the difference
- At Applicable for, Select whether you want to apply this rule for Taxable & Tax Amounts, Invoice Amount, or Taxable, Tax, & Invoice Amount.
- At ‘Ignore the difference when value in Books is’: Select the option ‘value is Greater or Less than Portal Value’, ‘Greater than Portal Value’, or ‘Lesser than Portal Value’.

b. Reconcile Transactions with Difference in Round off Amount

If transactions remain unreconciled due to round-off differences, configure to reconcile them automatically.

Under Reconciliation Details, Set Yes at Ignore difference in Books and Portal values.
The same option will now appear on the GST Details screen, under Reconciliation Configuration
In the GST Details screen, set Yes at Ignore difference in Books and Portal valuesand set the options as required.
- At ‘Allow difference in value up to’, enter the amount up to which difference to be ignored.
- At ‘Applicable for’, Select the Amount type on which this rule to be applied, from the options- Taxable & Tax Amounts, Invoice Amount, or Taxable, Tax, & Invoice Amount.
- At ‘Ignore the difference when value in Books is’: select the Amount type on which the rule to be applied, from the options, ‘Greater or Less than Portal Value, Greater than Portal Value, or Lesser than Portal Value’.
Enter the Effective Date for the revised GST details.
Press Ctrl+A to save the configuration.

c. Reconcile Purchases with TDS or TCS Amount

If TDS or TCS has been applied in a purchase, if invoice amount books differ from the portal,

under Reconciliation Details, set Yes at ‘Ignore difference in Invoice Amount’.

In all these cases, same options appears under GST Details screen,. Set the option accordingly and press Ctl+A to save the configuration. After setting the options, the respective differences are auto reconciled.

Company GST Set Up Workflow Summary

Enable GST in Company Features.
Open Set/Alter GST Details.
Select the correct State.
Choose the appropriate Registration Type.
Enter the GSTIN accurately.
Specify the GST applicability date.
Configure optional features such as E-Way Bill, E-Invoicing, and Reverse Charge only if they apply.
Save the configuration and verify that GST reports are available.
multiple registrations may be set in one company, providing consolidated MIS reports but allowing registration-wise return filing.
IMS reconciliation is enabled, to match “Uncertain Transactions” in Returns.
Do not enable E-Invoice unless the business falls under the government’s notified turnover criteria.
Reverse Charge Should Be Enabled only when liable under Reverse Charge provisions.

By completing the Company GST setup in TallyPrime 7 establishes the statutory framework required for GST accounting. Now the company is ready for the next phase of GST implementation, for configuring GST in Accounts Masters and Inventory Masters, GST-enabled transaction.

Users’ feedback on Company GST Set Up user Interface

Too many things at the very start

The user discovers the GST set up options from F11:Features, through diverted multiple routes and points.

But, in real working, some need to be set up immediately on Company creation, some need to be set up before accounts masters at separate stages, some to be set up for Inventory Masters, some options are relevant at Invoicing, some at Accounts Vouchers (like advance receipts). Though only a few options are relevant for an every organisation, all GST related set up options are thrown open before the user, at the very start.

In user, in bewilderment, gropes in the dark, to comprehend what to set up immediately, and what to leave for later stage, at relevant task.

The user should be guided through real life workflow. The screen, configuration options, menu hierarchy, all should be aligned to work flow stages (user oriented architecture and deign), rather than set up- masters-transaction-report workflow of all functions in a cluster (technical architecture and design),

Before an uninitiated user embarks to start GST in Tally, a plethora of bewildering complex and intricate set up options, about which the user is not aware about, or prepared at, are asked. The relevant options should be place at the relevant function (like e-Invoice set up in the e-invoicing function), e-way bills set up at e-way Bill function).

I compile below observations of some users experienced in Tally as well as in trending modern accounting software.

Company GST set up User Interface – Commentary

The current user interface (UI) for GST configuration in TallyPrime 7, is designed as a multi-layered hierarchy aimed for clean screens over consolidated access. This architecture results in a “scattered” experience, where advanced features are hidden behind sub-menus and secondary configuration toggles.

Company GST setup is not a linear process but a fragmented one across different layers of the software:

Primary vs. Secondary Layers: While the basic registration details are found immediately after enabling GST in F11, advanced features like LUT/Bond details or specific Reconciliation configurations (such as ignoring differences in taxable amounts) require the user to first press F12 (Configure) within that specific sub-form to even make the options visible.
Topic Disconnection: Features that logically belong together are placed in separate functional “pockets.” For example, e-way details set up set up are scattered deep inside different screens.
Navigation Divergence: While company-level details are in F11, critical compliance settings like Voucher Numbering (which are unique for GST) are handled entirely outside the GST setup screen, requiring the user to navigate to Alter > Voucher Type.
Rate vs. Registration: Tax rates are dynamic, government dictated, may change any time. The idea of setting Tax rates (which relate more closely at Item level, HSN/SAC level), are designed at Company level (same rate for entire Compny), Group level (same rate for Items of group), something unrealistic, may create more problems (wrong rate assignment) than it solves (simplicity of rates entry), over time span.

Company GST set up- Suggestions for Intuitive Experience

To make the experience “self-operating” and reduce the need for external guidance, the following UX enhancements could be considered:

– Unified “Compliance Hub” or Wizard

Proposed Change : Instead of scattering settings across F11, F12, and the Alter menu, Tally could implement a GST Onboarding Wizard, to guide user through a sequence (e.g.Legal Identity (GSTIN) ->Operational Rules (e-Way Bill/e-Invoice) >Financial Rules (Rates/Advances) >External Connectivity (API/Portal details)), and like that. This would remove the need for a user to “discover” features, grope through Help and tutorials, seek guided assistance.

– Contextual “Smart Toggles”

Currently, users must know to what feature to enable before they can see its settings.

Proposed Change: If a user selects “Yes” for e-Way Bill Applicable, the threshold and related settings should automatically expand in an accordion-style view on the same screen, rather than deep-dive into secondary configurations, through screen swaps.

– Integrated Master-Level Previews

The “GST Rate Setup” report provides a consolidated view of rates across masters.

Proposed Change: This report could be integrated directly into the Company GST Setup screen as a “Review & Finalize” step. This would allow users to see how their company-level settings will impact their stock items and groups without leaving the setup environment.

– Automated “Status Check” Dashboard

TallyPrime 7 uses Connected Services for HSN and GSTIN validation.

Proposed Change: A “Compliance Readiness” dashboard could flag what is missing. For example, if e-Invoicing is enabled but the “Bill From Place”is empty, or if the LUT has expired, the UI should provide a message or even direct shortcut to that specific missing field.

By centralizing the scattered statutory requirements into a single, workflow-driven interface, the software would become significantly more intuitive for beginners while remaining efficient for experts.

Company GST Set Up – Special Set Up Process