How to Generate E-invoice in Tally Prime?
Learn how to generate and upload e-invoices in Tally Prime with this comprehensive step-by-step guide, ensuring GST compliance.
E-invoicing is a crucial component of GST compliance for businesses in India. With the introduction of this system, businesses must generate invoices in a specific format, which are then authenticated by the GST Network (GSTN) to receive a unique Invoice Reference Number (IRN). Tally Prime a widely used accounting software, simplifies this process by providing built-in tools to generate, upload and manage e-invoices seamlessly. In this guide we'll walk you through the step-by-step process of generating an e-invoice in Tally Prime ensuring your business adheres to the latest GST regulations.
Electronic invoicing is a mandatory requirement under the GST (Goods and Services Tax) regime in India. This system known as e-invoicing or electronic waybill (EWB) ensures transparency, efficiency, and reduces the chances of tax evasion.
Generate e Invoice in Tally Prime
1. Update Tally Prime
Ensure that you are using the latest version of Tally Prime. Regular updates include improvements and features essential for e-invoicing.
To check for updates, navigate to
`Help > TallyPrime Release Notes`and ensure you are using the latest version.
2. Activate GST and E-invoicing
Go to
`Gateway of Tally > F11: Features > Statutory & Taxation`
Enable the option “Enable Goods and Services Tax (GST)”.
Ensure you select the correct type of GST registration based on your business type.
To activate e-invoicing, select “Yes” for the “Enable e-invoicing” option. Tally will prompt you to configure additional settings, such as entering your GSTIN.
3. Set Up E-Invoicing Details
After enabling e-invoicing, you'll need to configure details specific to your business.
Go to
`Gateway of Tally > F12: Configure > Invoice / Orders Entry`
Ensure that the invoice format is compatible with e-invoicing. You may need to set up HSN codes, GST rates, and other particulars required for generating an e-invoice.
4. Create/Update Ledger for GST Compliance
Go to
`Gateway of Tally > Accounts Info > Ledgers > Create`
Create or update your ledgers (such as Customer, Supplier, and Tax ledgers) to include necessary GST details. Ensure GSTIN is correctly entered for all parties involved.
For example, for your customer ledger, ensure the “Is GST applicable?” option is set to “Yes,” and the correct GSTIN and registration type are entered.
5. Generate Sales Invoice
Go to
`Gateway of Tally > Vouchers > F8: Sales`
Enter the required details such as party name, GSTIN, item details, HSN code, and applicable GST rates.
Once the details are filled, save the invoice. Tally Prime will automatically generate an Invoice Reference Number (IRN) based on the details provided.
6. Upload E-Invoice to the GST Portal
After generating the invoice in Tally, you can upload it to the GST portal.
Tally Prime has an in-built feature to directly upload e-invoices to the GST portal. Go to
`Gateway of Tally > Exchange > Send for e-Invoicing`
Select the invoices you want to upload and Tally will automatically upload them and retrieve the IRN and QR code from the GST portal.
7. Print the E-Invoice
Once the e-invoice is uploaded and the IRN is retrieved, Tally Prime will automatically update the invoice with the IRN and QR code.
You can now print the e-invoice with all the necessary details, including the IRN and QR code, which are mandatory for compliance.
8. Reconciliation and Error Handling
Regularly reconcile your e-invoices with the GST portal to ensure that all invoices are uploaded and there are no discrepancies.
If there are errors during the upload process, Tally Prime will notify you. You can rectify these errors and re-upload the invoice.
By following these steps, you can efficiently generate and manage e-invoices in Tally Prime, ensuring that your business remains compliant with GST regulations.