In this chapter we will learn how to activate e-way bill in tally erp 9 and how to generate e-way bill using tally erp 9.E-way bills are the transport document for the movement of goods both inter state and intra state. Some states are make it mandatory for both interstate and intra-state movement of goods. eway bills are generated when there is a goods movement of more than 50000 in single bill or delivery challan.

How to activate GST e-way bill in tally ?

To setup  GST e-way bill  you need to go to activation screen of  gst in tally

  • F11 Features >F3
  • Enable Goods and Service tax ( GST)  :Yes
  • Set/alter GST details: Yes

GST details screen appear as shown below.

e-way bill activation

You will find following eway bill options 

  • e-way bill applicable : Yes
  • Applicable from : Enter the date from which e-way bill applicable to you.
  • Threshold limit Includes

Threshold limit for e-way bill includes

There are three options for threshold limit

  1. Invoice value
  2. Taxable and exempt goods value
  3. Taxable goods value

Select whichever is applicable to your business

  • Applicable for intrastate : Yes ,If e-way bills are applicable for transactions within state.
  • Threshold Limit : 50000 threshold limit for intrastate transactions applicable in your registered state.

Hit enter and accept the screen. Now the e-way bill settings are saved and activated.

How to generate e-way bill using tally erp 9 ?

In tally erp 9, To generate e-way bill you need to activate e-way bill as described above. Nothing more  is needed. When a gst sales voucher or purchase invoice is being entered; tally will ask you to Provide GST/e-way Bill details immediately after entering the rate of the item. e-way bill option appear only if you are entering a stock item in the invoices, that is eway bill option is not available for service invoices.

Sales voucher with e-way bill option enabled

If you want eway bill generated for this transaction, Select Yes for the option ‘Provide GST/e-way Bill details’  and Hit enter Key.The e-way bill details screen will appear as follows.

e-way bill entry details screen

Now let’s have a look at the other options provided in the screen. You will find three buttons on the right hand side of the screen. Here is the compact view of those buttons

other buttons available in e-way bill screens

If anything found missing in the above screen, Press F12 configure and activate those options.

Transport details : If goods are transported through more than one modes, For example, exporting goods are transported through road initially then through ship , In such cases you can input those details by clicking on the Transport details button provided on the right hand side of screen in tally erp 9. The shortcut key is Ctrl+T

e-way bill details:You can found another button called e-Way Bill Details here, This button is used to enter details of multiple e-way bills for a single transaction. The short cut key is Alt+W.

How to generate json file for e-way-bill portal?

Here enter all the details as shown  in the above image and hit enter key to save  eway bill details screen. Now save the sales voucher. If anything mandatory is missed out tally will send you a warning message while saving the voucher.

Tally will display you exporting details for e-way bill screen. Any thing need to be changed press back space for modification.

export details for e-way bill
Export details of json file for e-way bill

Click on Yes or Press Y for exporting  json file to the specified folder.

If ‘Open Exported Folder‘ option is activated in the above screen. A folder will open in front of you with the json file.

exported json file in folder

And at same time you will find another screen opened in tally erp 9 as shown below. Keep this as it is in tally. and go to next step.

Update e-way bill information after generating e-way bill

How to upload json file to e-way bill portal

To upload json file generated through tally erp 9, You just need to follow the few simple steps below.

Go to GST e-way bill site

Login to The site

Click on E-way bill

e way bill site menu

click   Generate Bulk

Browse json file

Browse json file from your computer and select the newly generated json by tally erp 9. Click upload. The e-way bill details are populated in the screen.


Now click on Generate button.

Generated e-way bill number

The e-way bills will have generated ,See the image above.Now note the ewb number and click on Home button of the eway bill portal

Now you will be in the home screen, click on menu  e-way bill >> Print ewb

Print ewb menu

Print ewb number

Click on Go button, The e-way bill will be generated as shown below.

e-way bill

Click on Detailed Print to view all details of ewb. Click print to take the printout of e-way bill.

Now update the e-way bill number in tally erp 9


Save the screen.

How to view e-way bill details report?

You can view the e-way bill details in e-way bill report of tally erp 9. To view this report go to.

Display>Statutory Reports>GST>e-way bill>e-way bill report

e-way bill report

Hope this tutorial helps you. please do share with your friends in social medias.


In Tally ERP 9, You can  set GST rates  & HSN /SAC Codes at various levels of operation in order to apply gst rates & HSN SAC codes to goods and services during voucher entry to get printed in Invoice and other reports.

Before we go; let’s understand some basics about HSN Code/SAC code

What is HSN Code ?

HSN is the abbreviation of harmonised system of nomenclature , It is a system of naming  ( coding ) Products for quick identification during international trading. This system is developed by World Customs Organisation.  This codes are already in use in India for Import & Export of goods and service.Now implementing HSN code with GST  tax system in India.

GST Act makes it mandatory to print HSN/SAC Code in the  Invoice to the following categories of business based on Turnover.

Business with Turnover  HSN CODE
  Below 1.5 crore Not required
 1.5 crore to 5 crore 2 Digit HSN Code
 Above 5 crore 4 Digit HSN Code
Business deals with Import and export 8 Digit HSN Code
Business deals with service 5 Digit SAC Code

The turnover of the previous year is considered for implementing HSN code with Invoice.

How can we find the HSN Code of the Products?

There are more than 5000 commodity groups under HSN Code system.It is very  difficult to find out a particular product’s HSN code from the GST Portal.  The HSN Code provided in the GST Rate booklet provided by GST council contains only Four digits. As per GST Act business may require 2 digit codes, 4 Digit HSN Codes and 8 Digit HSN Codes. Let’s understand this.

Example :  Findout the 2 digit, 4 digit & 8 Digit HSN code of PLYWOOD

There are some other websites apart from gst official sites provide you HSN Code.


Lets use which is found more user friendly for me. Access the website in your browser.

Go to Menu  Indian Trade Laws > HS Classification

HS Classification menu

Here you will find  21 sections & 98 chapters of HSN Code.

Section and chapters of HSN Code

Find out the appropriate section of your commodity. Section 9 is found suitable for PLYWOOD, If you found difficult in identifying right section, you can use the search provided at the top of the page.

HSN section and chapter for commdity

In Section 09,  You will Find  Chapter 44 Which states “Harmonised System Codes of Chapter 44: Wood and Articles of wood; wood charcoal“.

As PLYWOOD is the articles of wood. Click on Chapter 44 . In this page you will find Section, Chapter & Heading codes.


HSN Heading code

Now click on Heading code, You will get the more precise classification of plywood & veneer with 8 Digit HSN Code. Choose the right Product HSN Code.

8 Digit HSN Code

So from this example of PLYWOOD The codes can be Identified as

2 Digit HSN Code of PLYWOOD is the Chapter code : 44

4 Digit HSN Code of PLYWOOD is the Chapter Code (44) + Heading Code (12) : 4412

6 Digit HSN Code of PLYWOOD is the  Chapter Code (44) + Heading Code(12) + Product Code : (31) : 441231

8 Digit HSN Code of PLYWOOD is the  Chapter Code (44) + Heading Code(12) + Product Code : (31) + Product Sub Division Code (10) = 44123110.

Hope this helps to findout the HSN Code of the products.

What is SAC Code & How to find out right SAC Code ?

SAC is the service accounting codes for accounting services in India.This coding system is developed by Central Board Of Excise and Customs ( CBEC) Which was in use with service tax regime. Now service tax is subsumed by GST but the code is retained and used in GST for accounting Services.

Download   a List of Services Accounting Code With  Heading Number, Group Number &  Service tarrif code from below link.



Open the sheet you will Find the code as explained below.

4 Digit SAC = Heading Code : 9954

5 Digit SAC = Heading Code (9954) + Group Code (1) : 99541

6 Digit SAC = Heading Code (9954) + Group Code (1) + Service Code (1) : 995411

SAC Code 4,5 & 6 digit

How to find out GST rate for your product ?

Now we know how to find-out  the HSN/SAC code, Now we want the tax rate of every products we are dealing with. You can get GST rates at various websites, Please find below the best options  selected.

GST Rate Finder Provided By CBEC

GST rate and HSN Look up by cleartax.

GST rate ,HSN/SAC Finder at Indiafiling

Configure GST rate HSN/SAC

GST rates and HSN Codes  can be configured at various levels of tally erp 9.

  1. Company Level
  2. Stock group level
  3. Stock Item Level
  4. Ledger Group Level
  5. Ledger Level
  6. Transaction level.

If you set GST rate & hsn/sac more than one level ,then tally will consider the rate and code in the following order

Company Level, Stock Group, stock item, ledger group, ledger level & transaction level Transaction Level rate & HSN/SAC
Company Level, Stock Group, stock item, ledger group &ledger level Ledger level rate & HSN SAC
Company Level, Stock Group, stock item & ledger group Ledger group level gst rate HSN & SAC
Company Level, Stock Group& stock item levels Stock item level gst rate & HSN & SAC
Company Level & Stock Group Stock group level rate & HSN SAC
Company level company level rate & hsn/sac

GST Rate HSN/SAC Consideration

GST rate, HSN/SAC setup at Company level

We can configure gst rates &hsn/sac at company features screen or we can say company level. This rate setup is useful when all the goods and service have the same tax rate.

How to setup gst rate at company level ?

To setup GST rate ,HSN/SAC at company level. go to

F11 Features > F3: Statutory & Taxation

In the statutory & taxation screen enable the following options.

Enable Goods & service tax ( GST) : Yes

set/alter GST Details : Yes

gst activation screen

GST Details screen will appear,  In the screen enter state, GSTIN, Applicable date as shown in the image also enable.

set/alter GST rate details : Yes.

This will bring rate setup screen ,

Gst details screen

Click on F12: Configure

Allow HSN/SAC details : Yes

Show All GST tax type :  YesGST Details configureThis will Bring GST details with HSN /SAC details.

HSN/SAC : 4412

Taxability : Taxable

Integrated Tax : enter the integrated tax, Tally will automatically split state tax & central tax. see the image below.

HSN SAC and tax rate entry

Press enter to save all the screens.Company level gst rate setup is useful for users whose tax rate & HSN/SAC is same for all commodities.

Setup GST rate hsn/sac at stock group level

You can specify GST tax rate, HSN/SAC at stock group level also. This is helpful for those sellers who is having a group of items having same tax rate, HSN/SAC. If we set gst rate hsn/sac at this level all stock item under this group will be used the same rate during invoicing.

How to setup GST rates hsn/sac at stock Group Level ?

To set GST Rates & HSN/SAC at stock group level, Either you have to create or edit an existing stock group . Let’s create a stock group . Before we start make sure that you have activated GST in F11 Features, but do not set rate there.

Go to  Gateway of Tally> Inventory Info> Stock Groups> Create

Create stock group with gst rateSet/alter GST Details : Yes

Press enter, you will get access to a new screen called gst details where tax rate is set.

GST rate hsn code setting for stock groupPress enter key to save both the screens. Now we have set tax rate for stock group.The rate hsn/sac set at stock group will override the rate ,hsn/sac set at Company Level.

Setup GST Rates & HSN /SAC at stock item level

GST rate & hsn/sac at stock item level is useful when few items in a stock group or all of the products in a company have different GST rate and code. If few items in a stock group have different rate than the  rate set at the stock group level, then you can specify GST rate and code for individual stock items which will override rate set at stock group level and company level used while invoicing.

How to set GST Rate at stock item level ?

To set the rate at individual stock item level you have to edit existing stock group. Let’s create a GST rate at stock item as mentioned in the above table.

Go to Gateway of Tally> Inventory Info>Stock item >Create

Enter the name, Under group ,Units  and in the statutory information

GST Applicable ? : Applicable

Set/alter GST Details : Yes ( Refer below image)

stock item creation with GST Rate

Press enter to get the tax rate definition screen. Then enter Calculation type, and taxability as applicable to you. Enter integrated tax in the given field, refer below image.

GST Rates HSN/SAC settings at stock item level

Press enter to accept and save both the screens. Now you have set the gst rate, hsn/sac code details at stock item level which will override the rate at company level and stock group level.

Setup GST Rate at Ledger Group level

Specifying gst rate &hsn/sac at ledger group level will help you to apply same tax rate for different transactions type like, sales ,purchase, sales return & purchase return.

How to set GST Rate at ledger group level?

For example we can set the gst rate to a sales group called local sales under which all local sales ledger are placed.

Gateway of Tally>Accounts Info>Group> Create /Alter 

Set/alter GST Details : Yes

gst stock rate for ledger

Press enter to get gst tax rate details.

Enter Nature of transaction & tax type as shown below.

Ledger Group level SAC /HSN gst rate aettingPress enter to accept and save both the screen.


The rate set at ledger group level will override the rate set at stock item level,stock group level & company level.Tally will consider the rate set at ledger group level even if you have set rate at other levels.

Setup GST rate at ledger level

You can set up GST rate & hsn/sac at ledger level if you want to segregate sales or purchase of item with same tax rate. We can define rate at Sales/Purchase ledgers.

How to set up tax rate at ledger level?

To setup tax rate & hsn  at ledger level, you have to go to ledger creation/alteration screen.

Gateway of Tally> Accounts Info>Ledger >Create

Is GST applicable ? : Applicable

Set/alter GST Details : Yes .

ledger level gst setup

Press enter KEY, GST details screen will appear. enter the tax rate as shown in the below screen.

GST rate hsn sac settings at ledger level

Press enter and accept the screen. The rate & hsn /sac defined at Ledger level will override the rate set at ledger group, stock item level, stock group level & company level.

How to set GST rate at Transaction Level ?

Some times you may want to change the tax rate even after you have set GST rate at some levels of Tally ERP 9.

Example : We have set GST rate at company level and want to create an invoice for exempt sale.That is the tax rate should be NIL in invoice. To do this.

From sales Invoice Press F12 Configure button.Allow modification of tax details

Save configuration screen.

Select The sales ledger ,Tax classification details will appear.

tax classifications screen

Select Sales Excempt,

Enter sales details, tax ledger cgst & sgst, You will find the tax amount is calculated as zero. This is because of calculation of gst at transaction level.

HSN/SAC Cannot set at transaction level

Gst rate settings at transaction level

The best practice is that SET tax rate and HSN/SAC in the same level.

In this session You will learn how to activate GST in Tally ERP 9. Once activated, You can enter GST Registration details like GSTIN/UIN, Registration type Like regular dealer or composition dealer, Periodicity of Submitting GSTR-1 return; that is monthly or quarterly, E-way bill details etc. Tally provides you convenience of setting GST rates & HSN/SAC codes at various levels of tally based on the number of items you are dealing with.

Please follow the below steps to activate GST

  1. Open company you want GST to be used.
  2. Press F11 Features ,This will show you a company feature menu
  3. Press F3: Statutory button will display statutory & taxation screen.

In the screen you will find options,

    1. Enable goods and service tax (GST) : Yes
    2. Set/alter GST Details : Yes

This will display another screen where you can input GST Details of the company.

gst details screen


State : State selected here will help tally to identifying local sales and interstate sales. The state you selected should be the state you selected at company details while creating comapny. Make sure that there is no mismatch.

Registration type: There are two types of registration under GST. One is a regular dealer registration having a turnover of 1.5 crore and more. Composition dealers are having a turnover of less than 1.5 crore in previous year. Taking composition registration is not mandatory, it is optional and depends on the decision of the dealer.

Assessee of other territory: This option is applicable for those business units located inside the SEZ( Special economic zones) EEZ ( Exclusive economic zones). The sale and purchase are treated similar to interstate transactions and Integrated tax under GST is applicable.

GSTIN/UIN :  All the business registered under GST regime will be issued a unique identification number called GSTIN or Goods and service tax identification number. Which contain letter and alphabets. Enter the GSTIN or UIN .GSTIN and UIN is the same number issued by the department called in two different name. Tally will warn you in case you entered a wrong  GSTIN.

Applicable from : Goods and service tax implemented in 01-07-2017. Enter the date you want to start using GST in tally. You cannot use GST vouchers prior to this date. Type the date you want to start using GST in tally. For example ABC ltd got GST registered on 20-06-2018, then use 20-06-2018

Periodicity of GSTR-1: Business with less than 1.5 crore shall file a quarterly return and business with above 1.5 crore  shall file monthly.

e-way bill applicable: E-way bill is an electronically generated transport document of goods when the value of goods is more than 50000.00

If e-way bill applicable to your business, you will be asked for  e-way bill applicable from and e-way bill threshold. 50000 is displayed by default and you can change in special cases.You can also specify the value of Threshold limit includes and can opt e-way bill applicable for interstate transactions.

Enable tax liability on advance receipts: You can enable tax calculation on advance default this option is disabled.

Enable tax liability on reverse charge: You can enable tax liability on reverse charge or purchase from unregistered dealer.

Set/alter GST rate Details:  If you set this Yes, Tally will open another screen where you can enter GST rate details. You can set rate details here only if you have a single tax rate commodity . You will get to know more about set alter GST rate here.

Enable GST Classification : This allows you to classify GST Goods based on its nature and % tax. For example  You can create biscuit as classification. and under which your can create so many stock item like Tiger Biscuit, Parle-G With same tax rate. We will have a detailed tutorial on this in coming sessions.

Provide LUT/Bond Detail :  This is the bond for giving surety to pay tax integrated tax payable on export. The details like bond No & Validity shall be mentioned here.

GST has been rolled out in India on 01-07-2017. We know GST has subsumed all major Indirect taxes like VAT,Excise & Service tax. Which mean we don’t need to pay all these taxes instead we have to pay GST only. So you want to deactivate VAT, Central Excise & Service Tax in Tally ERP 9.  Let’s do this, before deactivating make sure that you should be able to use all this taxes till date 30-06-2017. Which means you may have pending VAT ,Service invoice  entry, return submission till date 30.06-207.

Deactivating VAT From 01-07-2017

Make sure that You have upgraded to Latest Tally ERP 9 Release ,Following options are available from Tally ERP 9 Realese 6. We recommend update to latest stable version Release 6.0.2.

To deactivate VAT from 01-07-2017 go to

Gateway of Tally > F11 Features >F3: Statutory & Taxation

Go to Set Alter VAT Details , Set this to Yes

Set Alter VAT Details

VAT Details screen will appear, In which you will find an option ‘Deactivate from‘ enter date 01-07-2017 as displayed in below image.

VAT Deactivate from option screen

Press enter and save. This will deactivate VAT only from 01-07-2017

Deactivate Central Excise from 01-07-2017

Deactivating Central Excise is a similar process of VAT Deactivation. How ever we are explaining this too.

Go to

Gateway of Tally > F11 Features > F3: Statutory

Go to set/alter excise details ,Set this to Yes

Set/alter excise details option screenshot

A new Excise details screen as shown below will appear, in this screen find the option ‘deactivate from‘. enter date 01-07-2017. This will deactivate central excise from this date.

excise details screen option deactivate from

Press enter and save the screen.

Deactivate Service Tax from 01-07-2017

Now finally service tax which is another major Indirect tax demolished by GST. Let’s do the same process for service tax too.

Go to Gateway of Tally > F11 Features > F3 Statutory

Go to option Set/alter service tax details. Make this to Yes

set/alter Service tax details

In the service tax details screen find option ‘deactivate from‘ at the end of the screen. Enter date 01-07-2017 here.

Service tax deactivate from screenshot

Press enter to save the screen. Now your Tally ERP 9 is Ready to activate GST.



Income received during a period but applicable to the next period is termed unearned income.Suppose for example,a company received on April 1 2016 apprentice premium amounting to 60000 for three years. Though the trail balance drawn up at March 31st 2017,Shows 60000 against apprentice premium the whole amount should not be treated as Income for the current year.It is for three years services that the company has received 60000.Therefore, only one-third of the 60000 should be taken as income earned during the first year;the remaining two third must be carried forward.

In other words,the unearned income of 40000 should be taken out of the income account and transferred to another account,which will be shown on the liabilities side of the balance sheet to indicate the companies obligation to render in the future service for which it has already been paid.This is accomplished by the following journal entry.

Unearned income journal entry

After this entry is posted,the two accounts affected will appear as follows.

Apprenticeship premium account

The balance of apprenticeship premium account 20000, shows the apprenticeship premium income earned and will be credited to profit and loss account at the time of preparing final accounts.

Unearned apprentice premium

This account shows the company’s obligation to render apprentice service during 2017-18 & 2018 -19 ;its credit balance should be shown on the liabilities side of the balance sheet.

An income which is due but not received on the date of closing the books is known as accrued income. For example,when the books are closed on 31st march March 2016,Interest on certain securities has fallen due. 2500. But the  interest received is only 2000; So the accrued  interest amounts to 500.Before the books are closed,the income account should be credited with this additional 500,and an asset account should be debited with the income receivable.The adjusting journal entry will be made as follows.

Journal Book
Date Particulars LF Debit Credit
31/03/2016 Accrued Interest————–Dr 500
To; Interest Account 500
(To record the asset and income of accrued interest on investment)

After posting this entry,two accounts are affected will appear as follows:

Date Particulars Folio No Amount Date Particulars Folio No Amount
By,cash ( interest so far received) 2000
31/03/2016 ,, Accrued Interest 500

The balance of this 2500,now shows the total interest income for the year and will be credited to profit and loss account.

Date Particulars Folio No Amount Date Particulars Folio No Amount
31/03/2016 To; Interest A/c 500

The balance in this account represents and asset at the end of the year and will be shown on the asset side of the Balance sheet.

Prepaid expense are future expenses that have been paid in advance and its benefits are yet to be received . A prepaid expenses arises when the amount is paid in advance for the goods or services to be received in future. Hence prepaid expenses are treated as an asset of the organisation and  its value written down as expense or charged to profit and loss account; after getting its benefits either monthly or yearly.

Certain expenses like insurance premium,rent rates etc, are often paid in advance.In this case a part of the amount paid during a given period relates to a subsequent period .For example the debit in the following expense account shows the premium cost of two-year fire insurance policy.


In this case,We paid 12 months insurance premium, out of this 12 months , premium of three months( 5000/12 x 3 = 1250) are related to current year that is for Financial Year 2015-16 and remaining 9 months premium (5000/12 x 9=3750) is related to up coming Financial Year,That is  for 2016-17.

Before the books are closed at the end of 2015, the unexpired premium should be taken out of the expense account and transferred to a prepaid expense or asset account.This is accomplished by the following journal entry.


After this entry is posted,the two accounts affected will appear as follows.


The balance in this account now shows the insurance expenses for 2015 and is debited to the profit and loss account.


Prepaid Insurance account is an asset account;it represents the cost of a valuable right to collect from an insurance company in the event of a fire loss during 2016.So 3750 will be shown on the asset side of the balance sheet as on 31-03-2015.

Prepaid asset will be charged to the expense of the next year. In above case the prepaid insurance will charge to the Insurance A/c as expense and the prepaid Insurance A/c which was carried forward from last Financial year will be cancelled.


After this entry posted to the next year ledger, The insurance account carries a balance of 3750 which is the current year expense chargeable to the revenue /profit and loss account.

Insurance account for next year after transferring prepaid expenses

And the prepaid insurance account will closed after charging expense from prepaid expense account.Hence it is removed from 2016-17 balance sheet.

Difference between expense and prepaid expense

  • Expense are any amount paid for the service or goods received where as prepaid expenses are the amount paid for the goods and services to be received in the future.
  • Expenses are charged immediately to the revenue account where as prepaid expenses are expensed only after its benefits received.
Translate »
error: Content is protected !!