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Glossary Tally

Godown

Definition

A godown is any place where a business keeps stock, such as a warehouse, shop, branch or job worker's premises, tracked so you know what is held where.

Updated 2026-11-052 min read

Example

A Raipur cement dealer has 600 bags at the main godown and 80 at the shop counter. A builder orders 200 bags for delivery from the shop, so 120 bags are first transferred from the main godown. At ₹350 a bag, ₹42,000 of stock changes location while the total stock value stays the same.

Godown in TallyPrime and in Cashflow OS

Where to find itIn TallyPrime

TallyPrime lets you maintain multiple godowns and pick a godown on each stock line of a voucher. Transfers are recorded with a stock journal or a delivery note and receipt note, and stock reports can be viewed godown-wise.

On your phoneIn Cashflow OS

Cashflow OS shows stock and item summaries from Tally, and an authorised user can post a stock journal into Tally from the phone or web.

Godown in the Cashflow OS app

Common misunderstandings

  • Watch outSelling from total stock without checking which godown actually holds the goods.
  • Watch outTreating an inter-state branch like a godown. A transfer to another GSTIN needs a tax invoice.

Why track stock by godown

Once a business has more than one place where goods sit, a single stock figure stops being useful. A salesperson promises 50 cartons because the total shows 80, but 60 of them are at the branch 40 km away. Godown-wise stock answers “how much, and where?” It also helps with stock audits (count each location separately), job work (stock lying with a job worker) and damaged goods (a separate godown for rejects).

Example

ItemMain godownShopBranchTotal
Tile 600x600 glossy (boxes)42035110565
Tile adhesive 20 kg (bags)90120102

A customer at the branch wants 30 bags of adhesive. The total shows 102, but the branch has none. A transfer of 30 bags from the main godown is recorded first, then the sale. At a cost of ₹480 per bag, ₹14,400 of stock moves location; the stock value in the books does not change.

Godowns and GST

Moving stock between godowns in the same state under one GSTIN is not a sale, though a delivery challan and sometimes an e-way bill may be needed for the movement. Moving stock to a branch in another state, with a different GSTIN, is treated as a supply and needs a tax invoice. See GST on stock transfer between branches.

Where it shows up in TallyPrime

TallyPrime lets you switch on multiple godowns, create a godown master for each location, and choose the godown on every stock line of a voucher. Transfers are recorded with a stock journal or a delivery note and receipt note. Stock summary reports can be viewed godown-wise. Our guide on Tally godowns and multi-location stock covers the setup.

Related terms

Stock groupDelivery challanE-way billVoucherAll terms A–Z

Questions about Godown

Is a godown the same as a branch?
Not always. A branch may have its own books or GSTIN. A godown is only a stock location, which can be inside a branch.
Can I keep stock lying with a job worker as a godown?
Yes. Many businesses create a godown for each job worker to track material sent and received.
Does a godown transfer change profit?
No. It moves stock from one place to another at the same value.
Should damaged stock be kept in a separate godown?
Many businesses do this so rejects are not counted as saleable stock. Move them with a stock journal and decide later whether to return, sell or write them off.
Does a godown need to be registered under GST?
Places where you keep goods are usually added as additional places of business in your GST registration. Check the requirement on gst.gov.in for your case.

This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.

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