TallyPrime 5.0 marked a significant leap forward in GST compliance automation. Building on the foundation laid by TallyPrime 4.0, this release introduced Connected GST, a transformative feature that eliminates the need for manual GST portal visits entirely. With direct return filing, automated TDS calculations, and expanded multilingual capabilities, TallyPrime 5.0 redefined how Indian businesses handle compliance.
Whether you are a small business owner managing GST returns yourself or an accountant handling multiple clients, TallyPrime 5.0 brought meaningful improvements to your daily workflow. Let us explore every feature in detail.
What's New in TallyPrime 5.0
TallyPrime 5.0 focused on two core themes: simplifying GST compliance through direct connectivity and enhancing everyday usability. The headline feature, Connected GST, was the first time any accounting software in India offered direct government portal filing without third-party intermediaries. Combined with automated TDS under Section 194Q, regulatory threshold updates, and visual improvements, this release significantly reduced the time businesses spend on compliance tasks.
Connected GST: Direct Return Filing from TallyPrime
Connected GST was the flagship feature of TallyPrime 5.0, fundamentally changing how businesses interact with the GST portal. Instead of exporting JSON files, logging into the portal, uploading returns, and verifying data manually, users could now complete the entire process within TallyPrime.
Direct GSTR-1 Filing
With Connected GST, you can prepare and file your GSTR-1 directly from TallyPrime. The software validates your data against the government portal's requirements before submission, catching errors that would otherwise cause rejection. Once validated, the return is filed with a single confirmation step. No browser windows, no OTP loops, no manual uploads.
Direct GSTR-3B Filing
GSTR-3B filing follows the same streamlined process. TallyPrime computes your input tax credit, output tax liability, and net payable amounts based on your recorded vouchers. You review the summary within TallyPrime, confirm the figures, and file directly. The challan generation and payment process is integrated into the workflow.
CMP-08 for Composition Dealers
Composition scheme dealers were not left behind. CMP-08 quarterly returns can also be filed directly through Connected GST. The statement of self-assessed tax is generated from your TallyPrime data and submitted without switching to the GST portal.
Real-Time Party GSTIN Validation
Beyond filing, Connected GST enables real-time validation of party GSTINs. When you create or update a party ledger, TallyPrime verifies the GSTIN directly with the government database. This eliminates mismatches between your records and the GST portal, reducing reconciliation issues during return filing.
Automated TDS Under Section 194Q
Section 194Q of the Income Tax Act requires buyers to deduct TDS at 0.1% on purchases exceeding Rs 50 lakh from a single supplier in a financial year. TallyPrime 5.0 automated this calculation entirely.
How It Works
- Automatic threshold tracking: TallyPrime monitors cumulative purchases from each supplier throughout the financial year. Once the Rs 50 lakh threshold is crossed, TDS is automatically computed on subsequent transactions.
- Government party exemptions: Purchases from government entities are automatically excluded from 194Q calculations, as per the Act's provisions.
- Bulk Nature of Payment updates: When filing Form 26Q, you can update the Nature of Payment for multiple deductees at once, saving significant time during quarterly TDS return preparation.
This automation removed a major pain point for businesses dealing with high-value purchases. Previously, accountants had to manually track running totals per supplier and apply TDS at the correct point, a process prone to errors and omissions.
B2CL Threshold Update
In line with the latest GST notification, TallyPrime 5.0 updated the B2CL (Business-to-Consumer Large) invoice threshold from Rs 2.5 lakh to Rs 1 lakh. This means invoices to unregistered consumers for inter-state supplies above Rs 1 lakh are now separately reported in GSTR-1 under the B2CL section.
TallyPrime automatically classifies qualifying invoices under the updated threshold, ensuring your GSTR-1 is compliant without manual intervention. If you use our free GST calculator, you can verify tax amounts on large B2C transactions.
Stripe View for Better Readability
A seemingly simple but highly practical addition, Stripe View introduced alternating row highlighting across reports and data entry screens. When working with ledgers, voucher registers, or any tabular view in TallyPrime, every alternate row is lightly shaded.
This visual enhancement reduces eye strain during extended working sessions and makes it easier to track data across wide columns. For accountants who spend hours reviewing reports, Stripe View was a welcome quality-of-life improvement.
Expanded Multilingual Support
TallyPrime 5.0 extended its language capabilities with the addition of Arabic and Bangla. This was significant for businesses in West Bengal and those dealing with Middle Eastern trade partners.
The multilingual system in TallyPrime 5.0 supports simultaneous use of multiple languages. You can maintain your books in English while generating customer-facing documents like invoices and statements in Arabic or Bangla. This flexibility is particularly valuable for export businesses and companies with multilingual workforces.
Tally Plug-In Management
TallyPrime 5.0 introduced a centralized plug-in management system. Through the Exchange menu, you can discover, install, and manage Tally plug-ins, including TallyCapital and other authorized extensions.
The plug-in manager provides status tracking for each installed extension, showing version information, update availability, and activation status. This consolidated view makes it easier to maintain your TallyPrime environment, especially in multi-user setups where different departments may use different plug-ins.
Payment Sorting by Due Date
Managing pending bills became more intuitive with payment sorting by due date. When recording payment vouchers, TallyPrime 5.0 lists outstanding bills sorted by their due dates, with the oldest dues appearing first. This helps businesses prioritize payments and manage cash flow more effectively.
The feature is particularly useful for businesses with numerous suppliers, where missing a payment deadline can result in interest charges or strained relationships.
How to Upgrade to TallyPrime 5.0
Upgrading to TallyPrime 5.0 requires an active Tally Software Services (TSS) subscription. Here is the upgrade process:
- Open TallyPrime and navigate to Help > Check for Updates
- If version 5.0 is available, click Download and follow the installation prompts
- Take a backup of your data before upgrading (TallyPrime prompts this automatically)
- After installation, your existing data migrates seamlessly to the new version
If your TSS has expired, you will need to renew your subscription before the update becomes available.
Need help upgrading? Our certified consultants at Mark IT Solutions handle the entire upgrade process, from TSS renewal to data migration and Connected GST configuration. Contact us for assisted upgrade support.
What Came Next: TallyPrime 6.0 and Beyond
TallyPrime has evolved significantly since version 5.0. The subsequent releases brought even more powerful features:
- TallyPrime 6.0 introduced Connected Banking with support for 145+ Indian banks and automated voucher creation from bank statements.
- TallyPrime 7.0 added TallyDrive cloud backup, SmartFind search, and the Invoice Management System. Explore the complete TallyPrime 7.0 feature guide.
If you are still on TallyPrime 5.0, upgrading to the latest version is highly recommended to benefit from Connected Banking, IMS, and cloud backup capabilities.
