GST Setup in Dynamics NAV

 Credit memo locking is entered 30-09-2018 due to as per government rule there is a time limitation after GST to create the credit memo when financial year closing happend.

Annual Return Fixed Date: 30-09-2018

Annual return fixed date is the date that which government declared as last date of submitting the returns.

GST Sub Accounting period page is used to define the  Month wise definition against the GST Accounting period created on the previous step.

For creating the new “GST Sub Accounting Period” open the GST Accounting Period and go to Action Tab. Then click on to ‘Create Sub Period”. Enter the details to create the Sub Period values.

Starting Date: July 01 – 2017  (Rest of the years it should be April 01 of corresponding Year)

No of Periods: 9    (Rest of the years it should be 12)

Period Length: 1M

States

State Page : State Code ( GST Reg. No)

Registration Number under GST is called Goods and Service Tax Payer Identification Number (GSTIN).

First 2 Digits should be State Code

3 to 12 digit Should mention PAN number of the company. That means if one company having 3 location registered under different PAN number then need to maintain different GST number.

You should enter the setup just like mentioned on above image.

For doing the GST Claim set off setup required to open the GST Component Page first and then click on to ‘Get Claim Set off’ button.

For creating the GST Claim setoff page should follow below setup format

GST Component Code: CGST

Set Off Component Code: IGST

Priority: 1

GST group is the place where Goods and Services of similar nature are grouped. Each group is assigned a group code. Remember by the help of this code only creating the actual GST setup. This page will look like following.

 For any GST Group, if the Place of Supply is different from what is defined in GST Dependency Type, then the same can be defined in GST Group Setup. If for a GST group, Place of Supply is defined in GST Group Setup, then the same flows to GST Place of Supply field in Sales lines. If it is not defined, then GST Dependency Type shall flow to GST Place of Supply field in Sales lines. This GST Place of Supply field in Sales lines is a user editable field.

GST Posting Setup

General Ledger Account for each component is defined state-wise here. Sample image of GST Posting Setup is as follows.

GST Configuration

This setup aids the system in determining the taxable state based upon

• Dispatching state code and customer state code for Sales
• Receiving state code and vendor state code for Purchases
• Determining the taxable jurisdiction enables the system to pick up the tax percentage applicable.
• For an export transaction, customer is located outside the country hence customer state code is blank. For an import transaction, vendor state code shall be blank, as vendor is located outside the country.

• The percentage and effective date for each GST component is defined state-wise here.

• If GST State Code is blank, then percentage and effective date defined for a GST Component is applicable for all states where there is no specific entry for such GST Group. For example, if Advertising Service has a uniform CGST rate in all states except Delhi, then instead of defining it for each state, it can be defined only once keeping state code as blank. A separate line can be created for Delhi state with Delhi specific percentage.  

GST Setup

Vendor

Vendor Page with Tax Information having option to define the GST setups

GST Registration No : under this field select the GST Registration number of Vendor

• Registered
• Composite
• Unregistered
• Import
• Exempted

• A Composite Vendor is a vendor whose aggregate turnover in a financial year does not exceed fifty lakh rupees and has opted for Composition scheme. A composite vendor neither collects tax from the recipient of supplies nor passes on any credit of Input Tax. Hence, no GST is computed if the purchases are made from a composite vendor.
• A composite vendor has to register himself with the GST authorities and hence Registration No. is mandatory in Vendor Card, if the Vendor Type is selected as Composite. State Code is also mandatory.
• A composite vendor cannot be engaged in supply of services and cannot make inter-state supplies of goods. However, system allows interstate purchases from a composite vendor and service purchase

• Persons whose aggregate turnover in a financial year does not exceed twenty lakh rupees are not required to be registered with the GST authorities. Such persons are called Unregistered Vendors. Any purchases from unregistered vendors attract Reverse Charge i.e. the purchasers themselves has to pay tax to the government.
• Interstate purchases from an unregistered vendor shall not arise, as any person irrespective of his turnover has to register with the authorities, if he is making an interstate sale.
• GST Vendor Type shall be unregistered in Vendor Card to handle this scenario. State code and GST Registration numbers are not mandatory fields for an unregistered Vendor.
• The purchasing user has to issue self-invoices under GST, if the purchases are made from an unregistered vendor. The user can issue a self-invoice in the system by selecting self-invoice from the dropdown of Invoice type in Tax Information tab of purchase documents.

• A vendor who is exempted from payment of GST either by Central or State GST authorities is known as Exempted Vendor. An exempted vendor neither collects tax from customers nor pays any tax to the government. No GST Entries are generated in the system, if GST Vendor Type is exempted.
• This vendor type can also be used to handle a scenario where purchase of only certain goods and services from an Unregistered Vendor is subject to reverse charge and the remaining are exempted. (Law is not clear as of now). State Code and Registration No. are not mandatory for the exempted vendor in Vendor Card.

Customer

Customer GST Setup

General Ledger Setup for GST

General Ledger Setup for GST