How to set up GST in Zoho Books: a step-by-step guide for Indian businesses

Before you start

• Your GSTIN and registration type (regular or composition)
• State of registration and any additional places of business
• The HSN or SAC codes and GST rates for your main items and services
• Whether you need e-invoicing and e-way bills
• Your accountant's preferred chart of accounts

Step 1: Organisation profile and GST settings

Enter the legal name, address and state exactly as in your GST registration, then enable GST in tax settings and add your GSTIN and registration date. If you have more than one GSTIN, set them up as separate locations or organisations based on your accountant's advice.

Step 2: Tax rates and tax groups

Zoho Books creates standard GST rates. Check the rates you need, and use tax groups so intra-state sales apply CGST plus SGST while inter-state sales apply IGST automatically based on place of supply.

Step 3: Items with HSN or SAC codes

Add each item or service with its HSN or SAC code, default tax rate and whether it is goods or a service. Import in bulk if you have many items, then spot-check a sample.

Step 4: Customers and vendors with GST treatment

Every contact needs a GST treatment (registered business, unregistered, consumer, overseas or SEZ), GSTIN where applicable and place of supply. Wrong treatment on a contact is the most common cause of incorrect tax on invoices.

Step 5: E-invoicing and e-way bills

If your turnover requires e-invoicing, connect Zoho Books to the invoice registration portal so IRN and QR codes are generated on push. Enable e-way bills if you move goods above the threshold, and fill transporter details on the invoice.

Step 6: Reverse charge, exports and SEZ

Mark reverse-charge purchases correctly, and set up export invoices with or without payment of IGST under LUT as your accountant advises. SEZ supplies need their own treatment.

Step 7: Test, then file

• Raise test invoices for an intra-state, inter-state, export and unregistered customer
• Check tax amounts, HSN summary and invoice format with your accountant
• Review GSTR-1 and GSTR-3B summaries in Zoho Books before filing
• Reconcile purchases against GSTR-2B every month

Common GST mistakes in Zoho Books

• Wrong state or place of supply on the organisation or contact
• Items without HSN or SAC codes
• Using one tax rate for everything to save time
• Turning on e-invoicing without testing a full invoice cycle

Frequently asked questions