The introduction of Goods and Services Tax (GST) has simplified India’s indirect tax structure, but it has also made tax filing more intricate for businesses. In 2025, businesses need to stay compliant with GST regulations to avoid penalties. Tally Prime offers an efficient and user-friendly solution for managing GST and filing returns. In this article, Vivek Sharma explains the step-by-step process of GST return filing using Tally Prime, ensuring that your business remains compliant effortlessly.

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1. What is GST Filing and Why is It Important?

GST filing refers to submitting your tax returns to the government to report your income, GST collected, and tax paid. Filing GST returns correctly is essential to avoid fines, interest, and legal complications.

Types of GST Returns:

• GSTR-1: Sales return.
• GSTR-3B: Monthly summary of income and tax paid.
• GSTR-9: Annual GST return.

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2. Step-by-Step Guide to Filing GST Returns in Tally Prime

Step 1: Enable GST in Tally Prime

1. Open Tally Prime and navigate to the “Gateway of Tally” screen.
2. Select “F11: Features” and enable GST under the “Taxation” section.
3. Enter your GSTIN (Goods and Services Tax Identification Number) and other relevant details.

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Step 2: Set Up GST Details for Transactions

1. Create or modify the ledgers to specify the GST rates.
2. Use the appropriate GST tax types (CGST, SGST, IGST) while entering sales and purchase transactions.
3. Ensure that every transaction is recorded with the correct tax rates.

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Step 3: Record Sales and Purchases

1. For sales invoices, select the correct GST tax rate from the list (CGST, SGST, IGST) when recording the sale.
2. For purchases, record the GST paid on the purchases accurately.
3. Ensure that all input tax credits (ITC) are claimed properly for purchases.

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Step 4: Generate GST Returns in Tally Prime

1. Go to the GST Reports section under the “Display” menu.
2. Select “GSTR-1” for sales or “GSTR-3B” for monthly summary.
3. Verify the data by reviewing the sales and purchase transactions.

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Step 5: Review and Validate the GST Data

1. Check for discrepancies or missing transactions.
2. Validate the entries and rectify any errors.
3. Use the “Reconcile” option to match your purchase and sales data with GSTR-2A or GSTR-2B (purchase data from GST portal).

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Step 6: Export GST Returns for Filing

1. Once you’ve verified and reconciled the data, you can export the returns in JSON format from Tally Prime.
2. Log in to the GST portal (www.gst.gov.in) and upload the exported file for GSTR-3B or GSTR-1 filing.
3. Alternatively, file returns directly from Tally Prime if connected to a GST Suvidha Provider (GSP).

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3. Key GST Reports in Tally Prime for Efficient Filing

1. GSTR-1 Sales Report: Provides a summary of all sales transactions, categorized by GST rates.
2. GSTR-3B Summary: Gives a consolidated view of the total tax payable and available ITC.
3. GST Audit Reports: Helps in preparing the business for audits by ensuring tax calculations are correct.

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4. Benefits of Filing GST Returns Using Tally Prime

1. Accuracy: Automatic GST calculations reduce the chances of errors in returns.
2. Efficiency: File returns quickly and stay compliant without manual calculations.
3. GST Reconciliation: Easily reconcile your sales and purchase data with GSTN data for error-free filings.
4. Timely Filing: File GST returns on time and avoid penalties and interest.

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5. Common GST Filing Mistakes to Avoid

1. Incorrect GSTIN: Ensure the correct GSTIN is entered for each transaction.
2. Unclaimed Input Tax Credit (ITC): Ensure ITC on eligible purchases is claimed to reduce tax liability.
3. Not Reconciled Data: Always reconcile your sales and purchase data with the government portal before filing.

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6. Conclusion

With Tally Prime, filing GST returns has never been easier. The software’s automation features and GST compliance tools streamline the entire process, saving time and ensuring accuracy.

As Vivek Sharma, I recommend adopting Tally Prime for your business’s GST compliance needs to avoid penalties and streamline tax filing in 2025.

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How to File GST Returns Using Tally Prime 2025