Tax Authority-Compliant Invoice Formats in Tally Prime 6.2

Published on: 03-09-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Tax Authority-Compliant Invoice Formats in Tally Prime 6.2

In today’s business environment, maintaining compliance with tax regulations is one of the most critical aspects of running an organization. Governments and tax authorities mandate businesses to generate invoices that meet certain standards in terms of structure, content, and format. These are generally known as tax authority-compliant invoice formats. Tally Prime, one of the most widely used accounting and business management software in India and other countries, offers powerful features that help businesses generate such compliant invoices effortlessly. With the release of Tally Prime 6.2, compliance-related features, especially those connected with Goods and Services Tax (GST) in India, have been further streamlined.

This article explains what tax authority-compliant invoices are, why they are important, and how you can create and use them in Tally Prime 6.2.

What is a Tax Authority-Compliant Invoice?

A tax authority-compliant invoice is a document that adheres to the invoicing rules prescribed by the tax authorities of a country. For example, in India, the GST law specifies that every invoice should include certain mandatory fields such as:

• Supplier details: Name, address, and GSTIN of the supplier.
• Invoice number and date: Sequential invoice number and the date of issue.
• Recipient details: Name, address, place of supply, and GSTIN (if registered).
• HSN/SAC codes: Harmonized System of Nomenclature (HSN) for goods or Service Accounting Code (SAC) for services.
• Description of goods or services: Quantity, unit, and value.
• Tax breakup: CGST, SGST/UTGST, IGST, and Cess where applicable.
• Total value of supply: Including and excluding tax.
• Signature or digital signature of the supplier.

If the invoice misses any of these mandatory elements, it may be treated as non-compliant, which can lead to penalties, denial of input tax credit (ITC), or other legal issues.

Importance of Tax-Compliant Invoice Formats

1. Legal Compliance: Ensures that your invoices are accepted by tax authorities during audits and assessments.
2. Smooth Input Tax Credit (ITC): Buyers can claim ITC only if the invoice is compliant.
3. Error-Free Returns Filing: Since invoice data flows into GST returns, accuracy reduces the chances of mismatches.
4. Professionalism: A standardized invoice format creates trust and credibility with customers.
5. Avoidance of Penalties: Non-compliance can attract fines or disallowance of tax credits.

How Tally Prime 6.2 Supports Compliant Invoice Formats

Tally Prime has always been designed with compliance at its core. The version 6.2 brings improved features to align with GST regulations in India. Let’s see how Tally Prime ensures compliance when generating invoices.

1. Pre-Configured GST Invoice Format

Tally Prime 6.2 includes built-in GST invoice formats that meet all requirements specified by Indian tax authorities. When you enable GST in Tally Prime, the system automatically adds the mandatory fields such as GSTIN, HSN/SAC, place of supply, and tax details to the invoice.

2. Customization Options

Although the default format is compliant, every business can customize its invoices to match branding needs while still staying compliant. Tally allows you to add your company logo, change invoice titles (like Tax Invoice, Retail Invoice, Bill of Supply), and include additional information without breaking compliance rules.

3. HSN and SAC Configuration

Tally Prime makes it easy to configure HSN codes for goods and SAC codes for services. You can set up these codes at the company, stock item, or ledger level. Once configured, the codes automatically appear in invoices, ensuring tax compliance.

4. Automatic GST Calculation

One of the most error-prone aspects of invoicing is the manual calculation of taxes. Tally Prime 6.2 eliminates this risk by automatically calculating CGST, SGST, IGST, and Cess based on transaction details such as place of supply and GST rate.

5. E-Invoicing and QR Code Support

In India, businesses with turnover above a specified limit must issue e-invoices with a QR code generated through the Invoice Registration Portal (IRP). Tally Prime 6.2 integrates with e-invoicing requirements, enabling businesses to generate JSON files for IRP upload and print the IRN (Invoice Reference Number) and QR code directly on the invoice.

6. Export, Print, and Email Options

Invoices can be printed in compliant format, exported as PDF, or emailed to customers directly from Tally. This saves time and ensures that invoices shared with stakeholders are always in the approved format.

Steps to Generate Tax-Compliant Invoices in Tally Prime 6.2

Here is a simple step-by-step guide to creating compliant invoices:

Step 1: Enable GST in Tally Prime

1. Go to Gateway of Tally > F11 (Features) > Statutory & Taxation.
2. Set “Enable Goods and Services Tax (GST)” to Yes.
3. Enter GST details such as GSTIN, state, and registration type.

Step 2: Configure HSN/SAC Codes

• While creating stock items or service ledgers, specify HSN/SAC codes along with applicable tax rates.

Step 3: Create Customer and Supplier Ledgers

• Provide GST registration type and GSTIN for each party ledger. This ensures that invoices pick up the right details automatically.

Step 4: Create and Print Invoice

1. Go to Gateway of Tally > Vouchers > Sales (F8).
2. Select customer, items, quantity, and price.
3. Tally Prime will calculate GST automatically.
4. Save the voucher.
5. Press Alt + P to print. The print preview will show a GST-compliant invoice with all mandatory details.

Step 5: E-Invoicing (If Applicable)

• For businesses covered under e-invoicing, generate the e-invoice JSON file, upload it to the IRP, and print the invoice with IRN and QR code.

Example of a GST-Compliant Invoice in Tally Prime

A typical compliant invoice generated in Tally Prime includes:

• Supplier Name, Address, GSTIN
• Invoice Number & Date
• Buyer Name, Address, GSTIN
• HSN/SAC Code
• Item Details (Description, Quantity, Unit, Rate, Amount)
• Tax Details (CGST, SGST, IGST, Cess)
• Total Value before Tax
• Total Tax Amount
• Grand Total after Tax
• Signature/Authorized Signatory
• QR Code & IRN (for e-invoices)

Advantages of Using Tally Prime 6.2 for Compliant Invoices

1. Accuracy: Eliminates human errors in tax calculations.
2. Time-Saving: Invoices can be generated in seconds.
3. Regulatory Updates: Tally frequently updates its software to reflect changes in tax laws.
4. Integration with Returns: Data from invoices flows seamlessly into GST returns (GSTR-1, GSTR-3B).
5. Audit-Ready: Invoices are always formatted as per requirements, ensuring smooth audits.

Conclusion

Tax authority-compliant invoice formats are not just a regulatory necessity but also a reflection of a business’s credibility and professionalism. Non-compliance can have serious consequences, ranging from penalties to denial of input tax credit. Tally Prime 6.2 simplifies this entire process by offering ready-to-use compliant invoice formats, customization flexibility, automatic tax calculation, and support for e-invoicing and QR codes.

Whether you are a small business owner or a large enterprise, Tally Prime ensures that every invoice you generate is legally valid, accurate, and accepted by both customers and tax authorities. By leveraging Tally Prime’s compliance features, you can focus more on growing your business while staying fully aligned with tax regulations.