How to Create GST Taxation Ledger for Cess in Tally

The process of creating GST ledger for cess in tally is actually almost same as creating GST ledgers for CGST, SGST and IGST.

But, there is a minor difference that you need to see and I am going to explain you that right now.

Let’s start.

• From Gateway of Tally, press ALC from your keyboard consecutively, one by one. It is one of 380 + the tally shortcut keys for creating a ledger in tally.
• Select GST in Type of Duty/Tax and in the option, Tax Type, select Cess.
• Now, in Valuation Type, there are 3 options which we can use. They are:
  • Any
  • Based on Quantity
  • Based on value
  • Select the option Any because then, we can use this ledger for calculating cess both on quantity and value.
• In the option, Percentage of Calculation, select 0%, because again, if we select 0% here, tally will automatically calculate the cess from stock item ledger or purchase ledger.
• Leave all the other options as it is and save the ledger.

Congratulations! You have successfully created a GST ledger for Cess in tally.

Let’s take an example of sales entry with GST and Cess so you can understand it very clearly.

We are selling 5 keyboards at ₹1,000 per keyboard with GST at 18% and Cess at 2%.

We have to alter the ledger for stock items as well as purchase ledger to include the cess at 2% apart from GST at 18%.

When you are in the GST details of stock item, in Cess, select the valuation type as Based on Value and Quantity.

Rate will be 2% cess for this example. Now save the ledger.

Entering Cess in GST Details for Stock Item in Tally

Now, when you are in the sales voucher in tally, here is how the entire sales entry will look.

Sales Voucher with GST Cess in Tally

I am sure, that now, you have understood, how to pass a sales entry with GST cess in tally.

Now, we will see how you can create a ledger for UTGST in tally.