Why Tally Prime Is Better Than Computax for Filing GST Returns in India

Call CA Tally HelpDesk +91 9205471661, 8368262875

Goods and Services Tax (GST) compliance has become one of the most critical responsibilities for Indian businesses. With frequent rule changes, strict timelines, and increasing departmental scrutiny, choosing the right accounting software for GST filing is no longer optional—it is essential.

Among the many accounting solutions used in India, Tally Prime and Computax are often compared. While both are used for bookkeeping, Tally Prime clearly stands out as a more advanced, reliable, and GST-focused solution, especially when it comes to GST return preparation, reconciliation, filing, and audit readiness.

This article explains in depth why Tally Prime is better than Computax for filing GST returns, covering every practical aspect—from day-to-day data entry to audit and departmental compliance.

1. GST Compliance Is Built into the Core of Tally Prime

Tally Prime is designed with GST as a core accounting framework, not as an external or optional feature.

How Tally Prime Handles GST:

• GST is integrated directly into:
  • Ledgers
  • Vouchers
  • Stock items
  • Tax configuration
• Transactions are automatically classified into:
  • B2B
  • B2C (Large & Small)
  • Exports
  • Nil-rated, exempt, and non-GST supplies
  • Reverse Charge Mechanism (RCM)

In Computax:

• GST configuration often requires manual mapping
• Classification errors are more common
• Users must frequently cross-verify transactions

Why this matters:
Incorrect classification is one of the biggest causes of GST notices. Tally Prime reduces this risk significantly.

Advantage: Tally Prime

2. Direct GST Return Filing Saves Time and Errors

One of the biggest strengths of Tally Prime is its direct GST filing capability.

Tally Prime:

• Supports direct filing of:
  • GSTR-1
  • GSTR-3B
• Data is uploaded directly from Tally to the GST portal
• Filing status is visible within the software
• Errors are shown before submission

Computax:

• Often requires:
  • Manual export of data
  • JSON file creation
  • Separate upload on the GST portal
• Limited visibility on filing status
• Higher dependency on manual checks

Why this matters:
Manual steps increase the chance of missed deadlines and incorrect uploads.

Advantage: Tally Prime

3. Superior GSTR-2A and GSTR-2B Reconciliation

Reconciliation is where most GST problems originate, especially regarding Input Tax Credit (ITC).

Tally Prime’s Reconciliation Strength:

• Auto-fetches GSTR-2A and GSTR-2B
• Matches purchase invoices automatically
• Identifies:
  • Missing invoices
  • Partial matches
  • Incorrect GSTIN
  • Wrong tax values
• Clearly shows ITC available vs ITC at risk

Computax:

• Reconciliation is mostly:
  • Manual
  • Excel-dependent
• Limited visibility into ITC risk
• Harder to explain mismatches during audit

Why this matters:
Incorrect ITC claims can result in:

• Interest
• Penalties
• GST notices

Advantage: Tally Prime

4. Strong Error Detection Before Filing

Tally Prime acts like a pre-GST auditor, checking data before it reaches the GST portal.

Errors Detected by Tally Prime:

• Invalid GSTIN
• Wrong tax rates
• Missing HSN or SAC
• Incorrect voucher types
• Unclassified transactions
• Negative stock issues impacting GST

Errors are displayed with clear guidance on how to fix them.

Computax:

• Many errors surface only after upload
• Requires repeated correction cycles
• Increases filing time and stress

Why this matters:
Preventing errors before filing saves time and avoids late fees.

Advantage: Tally Prime

5. Faster and More Accurate GSTR-1 Preparation

Preparing GSTR-1 is one of the most time-consuming monthly tasks.

Tally Prime:

• GSTR-1 is auto-generated from sales data
• Section-wise breakup:
  • B2B invoices
  • B2C invoices
  • Credit/Debit notes
  • Export details
• Minimal manual intervention required

Computax:

• Requires more manual review
• Section mapping is less intuitive
• Higher chance of misreporting invoice categories

Why this matters:
Incorrect GSTR-1 data impacts customers’ ITC and can damage business relationships.

Advantage: Tally Prime

6. Better Handling of ITC Reversals and Adjustments

GST law requires careful handling of:

• Ineligible ITC
• Proportionate ITC reversal
• Blocked credits
• Time-barred invoices

Tally Prime:

• Tracks ITC eligibility clearly
• Supports ITC reversals
• Shows ITC impact on GSTR-3B
• Helps during GST audits and scrutiny

Computax:

• ITC tracking is limited
• Often needs external working papers
• Difficult to justify during departmental queries

Advantage: Tally Prime

7. Audit Readiness and Departmental Compliance

GST audits and notices are increasing every year.

Tally Prime:

• Maintains clean audit trails
• Voucher-level transparency
• Easy generation of:
  • GST summaries
  • ITC reports
  • Turnover reconciliation
• Preferred by CA firms and auditors

Computax:

• Reports are comparatively limited
• Additional manual reconciliation often required
• Less efficient for large datasets

Why this matters:
Audit-ready data reduces stress and professional fees.

Advantage: Tally Prime

8. Scalability for Growing Businesses

As businesses grow, GST complexity increases.

Tally Prime Supports:

• Multiple GST registrations
• Multiple branches
• Large transaction volumes
• Manufacturing, trading, and service businesses
• Multi-user environments

Computax:

• Suitable mainly for small or static businesses
• Limited flexibility for complex GST structures

Advantage: Tally Prime

9. Regular Updates as Per GST Law Changes

GST law changes frequently.

Tally Prime:

• Regular updates aligned with:
  • GST Council decisions
  • Portal changes
  • New compliance rules
• Faster adoption of new features

Computax:

• Updates may be slower
• Some changes require manual handling

Advantage: Tally Prime

10. Strong Ecosystem and Professional Acceptance

Tally Prime:

• Widely accepted by:
  • Chartered Accountants
  • Tax consultants
  • GST practitioners
• Large support ecosystem
• Easy availability of trained manpower

Computax:

• Smaller professional ecosystem
• Limited third-party integrations

Why this matters:
Professional acceptance ensures smoother compliance and better support.

Advantage: Tally Prime

Quick Feature Comparison Table

Who Should Prefer Tally Prime?

Tally Prime is ideal for:

• GST-registered businesses
• Traders, manufacturers, service providers
• CA firms and GST consultants
• Businesses facing frequent GST notices
• Companies with high transaction volumes

Computax may be suitable only for:

• Very small businesses
• Basic accounting with minimal GST complexity

Conclusion

When it comes to GST return filing, accuracy, compliance, and audit safety are more important than basic bookkeeping. Tally Prime offers a complete GST ecosystem—from transaction recording to reconciliation, filing, and audit support.

While Computax can handle basic accounting, it lacks the depth, automation, and compliance strength required in today’s GST environment.

For businesses serious about GST compliance, Tally Prime is clearly the better choice over Computax.

Powered by Binarysoft Technologies
Authorized Tally Partner
Location : 1626/33, 1st Floor, Naiwalan, Karol Bagh, New Delhi – 110005, INDIA
Contact us : +91 7428779101, 9205471661, 8368262875
Email us :  tally@binarysoft.com (10:00 AM – 6:00 PM, Mon–Fri)