Selling through your own Shopify or WooCommerce store is simple for the customer. For accounts, each order becomes several things: a sale with GST, a payment through a gateway or COD, gateway fees, sometimes a refund, and finally a bank settlement that rarely equals any single order. This guide explains how to record all of it in Tally.
What needs to reach Tally
| Event | Tally entry |
|---|---|
| Order placed and invoiced | Sales voucher with GST (customer or a gateway/clearing ledger) |
| Online payment received | Amount due from the payment gateway (e.g. Razorpay, PayU) |
| Gateway settlement to bank | Receipt: bank gets the net amount; gateway fee + GST on fee booked as expense and input tax |
| COD order | Amount due from the courier until the COD remittance is received |
| Refund or return | Credit note reversing the sale and tax |
| Shipping charged to customer | Part of the invoice, with GST as applicable |
Step-by-step setup in Tally
- Create ledgers: Website Sales (with GST), Shipping Income, one ledger per payment gateway, a COD/courier ledger, Gateway Charges (expense), and Input GST on charges.
- Decide the sales posting: one sales voucher per order (best for GST detail and customer records) or a daily summary for very high volumes. Agree this with your accountant.
- Post sales against the gateway or COD ledger according to how each order was paid.
- Post settlements from the gateway's settlement report: debit bank with the net amount, debit gateway charges and GST on charges, credit the gateway ledger with the gross amount.
- Post refunds as credit notes in the month they happen.
- Reconcile monthly: the gateway and COD ledgers should come back to zero, or equal only the orders still awaiting settlement.
Why use a gateway ledger: the bank never receives one order at a time. Posting sales to a gateway ledger and settlements out of it makes the bank reconcile and shows unsettled amounts clearly.
GST points for online sellers
- Place of supply is the customer's delivery state: CGST + SGST within your state, IGST for other states.
- B2B orders: capture the buyer's GSTIN on the invoice so the sale is reported correctly in GSTR-1.
- Gateway and courier fees carry GST; claim it as input tax when it appears in your GSTR-2B.
- Your own website vs marketplaces: TCS under GST and TDS under Section 194-O apply to sales through e-commerce operators such as marketplaces, not normally to payments you collect directly on your own store. Check your case with your accountant.
Common problems
- Bank credits that cannot be matched to orders, because settlements combine many orders minus fees.
- Refunds missed, so sales and GST are overstated.
- COD money held by the courier for weeks without being tracked.
- Thousands of orders typed by hand at month-end.
Automate it with Tally Integration
Typing orders is where most mistakes start. Tally Integration connects Shopify, WooCommerce, marketplaces and payment gateways to Tally, so orders, refunds and settlements reach Tally without manual entry. If you also sell on marketplaces, see our guides for Amazon MTR sales and Flipkart sales. Call 93584-44502 for a free demo.
