GST ( Goods and Service Tax – India) Setup in Microsoft Dynamics Dynamics NAV
- GST Accounting Period
- GST Sub Accounting Period
- G/L Account Creation
- GST Registration number
- GST Component
- GST Claim Set off
- GST Group
- GST Posting Setup
- GST Configuration
- GST Setup
- Item / Fixed Asset
- G/L Account Card/Resource/Item Charges
- Company Information and Locations Master
- Service cost
- General Ledger Setup for GST
GST Accounting Period
|GST Accounting Period Setup Page|
GST Sub Accounting Period
GST Sub Accounting Period
G/L Account Creation
- IGST Rcvble Acc
- SGST Rcvble Acc
- CGST Rcvble Acc
- IGST Rcvble Acc(Interim)
- SGST Rcvble Acc(Interim)
- CGST Rcvble Acc(Interim)
- GST Refund Acc
- SGST Rcvbl Acc. Interim(Dist)
- CGST Rcvbl Acc. Interim(Dist)
- IGST Rcvbl Acc. Interim(Dist)
- CGST Rcvbl Acc. (Dist)
- SGST Rcvbl Acc. (Dist)
- IGST Rcvbl Acc. (Dist)
- IGST Payable Acc
- SGST Payable Acc
- CGST Payable Acc
- IGST Payable Acc(Interim)
- SGST Payable Acc(Interim)
- CGST Payable Acc(Interim)
- GST Expense Acc
|State Page : State Code ( GST Reg. No)|
|GST Registration Number|
|GST Component : Setup|
GST Claim Set off
|GST Claim Setoff|
|GST Group Setup|
- System validates shipping location state code and place of supply state code with GST configuration setup for any matching line and triggers the tax accordingly.
- Example: For Advertising Services, if Place of Supply is Ship to Address and the same is defined in GST Group, then GST Place of Supply field in Sales lines is auto-populated with Ship to Address. If the ship to address is, Karnataka and the shipping location is Tamilnadu, and then system checks for matching line in the GST configuration set-up and triggers the tax rate accordingly.
- Place of Supply can also be defined for each GST Group. Place of Supply is critical in determining whether it is an interstate sale or intrastate sale. Place of Supply can be Bill to Address, Ship to Address or Location address.
- If Place of Supply is not defined in the GST Group, then system considers GST Dependency type defined in Sales and Receivable Set-up as Place of Supply.
GST Posting Setup
|GST Posting Setup|
- State Code
- GST Component Code
- Receivable Account
- Payable Account
- Receivable Account (Interim)
- Payables Account (Interim)
- Expense Account
- Refund Account
- Receivable Acc. Interim (Dist)
- Receivable Acc. (Dist)
- 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.
|Vendor Setup – GST|
- 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.
- Bringing goods to India from a place outside India is import of goods. For Services, if the supplier is located outside India, the recipient is located in India and the place of supply is in India, then it is called Import of services.
- Purchase of goods and/or services from a foreign vendor is subject to Reverse Charge i.e. the person importing goods or services has to remit tax to the government. Import of goods are subject to both customs duty and IGST whereas import of services are subject to IGST. There is another scenario of importing services from associated enterprises. Accounting Entries differ in each scenario.
- GST Vendor Type shall be Import in Vendor Card for a foreign vendor. Registration Number and State Code are not mandatory fields in Vendor Card.
- 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 GST Setup|
Company Information and Locations Master
General Ledger Setup for GST
|General Ledger Setup for GST|
Keep on visit Navision Planet for latest updates and training documents for GST and latest changes in Microsoft Dynamics NAV.