Welcome in this blog you will get complete information about setup of GST for an Indian entity in Microsoft Dynamics 365.
This Required
Step 1 (Tax Type Mapping)
For GST Node map the Tax type
Step 2
For Each Component Map the Ledgers in Accounting and Currency & Period in Reporting
Recommendation is to define Main accounts for all posting types at the Component level like main accounts for CGST and Separate accounts for SGST and likewise.
- Tax Recoverable: All the input credit amount will be posted in this main account
- Tax Payable: All output GST payable will be posted in this main account
- Tax Expense: This Main account will be used when there is no input credit and expenses are not loaded on product cost
- Interim Payable: In case of RCM this will be used
- Interim Recoverable: In case of RCM this will be used
(As you can see only those accounts which has posting type as India GST as available.)
- First Click on Add in Condition Section to make condition visible.
- Then Click on Save to make Value section work.
Step 3 Define HSN and SAC Rates:
We need to understand why SAC rates are showing different.
Define SAC Tax Rates (Need to understand this one)
Step 4 Define Reverse Charge Condition and Tax Rate for each component (CGST, SGST and IGST)
Step 5 Define Load on Inventory Percentage for each component
Now the Next Part
HSN/SAC: To identify the rate for the product, HSN for goods and SAC for services
Exempt: Enable this if the product or service is exempted from GST e.g. Milk, Vegetables etc…
Non-GST: Enable this if product does not fall under GST but you want to mark the product
If we have inventory products to purchase and sales though site, warehouse then we need to map “GST Registration number” which we have created as master in last blog to all the addresses of site or warehouses.
Note: If we do not map any GST registration to the location and use in the transactions, then system will understand location as “Un-register” and also will calculate “Intra-State (CGST &SGST)”.
Now, many people will ask what if we do not define the GST at warehouse but define at the site or do not even define at site but only at legal entity, so here is the priority system will give to find GST registration for any location.
Priority -1: Warehouse
Priorty-2: Site
Priorty-3: Legal entity
Navigate to, Inventory Management > Setup > Inventory breakdown > Site/Warehouse (I am taking warehouse)
We need to define the GST registration number for all the address in legal entity. This will be used in all the transactions where we cannot select site/Warehouse, in that case GST registration will be selected from legal entity address e.g. Invoice journal, Free text invoice
After mapping GST registration for internal addresses, we need to map the GST registration for vendor master as well.
Note: Any vendor address where GST registration is not mapped and used in any transaction, that vendor will be considered as “Un-Registered” vendor.
Other than GST registration mapping, we can have other setups on vendor
GST Composite Scheme, GTA Vendor, Foreign Vendor etc…
Need to show picture here..,