ERPNext is GST Compatible

Hello Everyone,

You will be glad to know that ERPNext has been made GST compatible. The required doctypes and fields have been added in the masters and transactions (details below). Currently, these changes are on develop branch, expected to be merged into master branch by the next week.

This feature was developed in the code sprint organized by ERPNext Foundation. It was great to have @revant_one, @Pawan, @gupteshwar and Frappe team attending and contributing.

Features Added

  1. HSN Code master
  2. State Code master
  3. GSTIN field added in the Address master, so that we can track GSTIN of Company, Customers and Suppliers.
  4. . In the Sales Invoice and Purchase Invoice, Customer’s and Supplier’s GSTIN will be fetched respectively (via Address master).
  5. HSN Code (link field) added in the Item master.
  6. HSN Code will be fetched into Sales Invoice Item and Purchase Invoice Item as well.
  7. Updated reports like Sales Register, Purchase Register, Itemwise Sales Register and Itemwise Purchase Register, so that you can export data and complete tax filing (GSTR1).

For more detailed updates on GST compatibility and upcoming features, please check following Github Issue.

Looking forward to your feedback and suggestions.

20 Likes

This is really good news! It lays to rest a lot of queries and anxieties of existing and potential users.
Great Job Guys !!!

1 Like

Hi @umair

Is the fields available for all installations or based on country?

Thanks!

1 Like

Thats great news!!! Appreciate the good works.

Thanks,

Amit

Have the changes been merged? I cannot see any changes after update. I am currently on 8.0.65. If the changes have been merged, then do I need to do something to enable it?

regards,

Amit

This is great. I posted this on my Facebook, LinkedIn & Twitter feeds. Request all India focused individuals to do the same.

Thanks

Jay

Well done!!! Good job guys.

Great work guys! Does all the print format for sales invoice and bill of supply has been formatted according to the Guidelines from gov: https://www.aces.gov.in/Documents/draft-invoice-rules.pdf

Just wanted to know whether the system would identify the type of taxes to be levied on the sales invoice automatically???

Simply put, would system automatically identify whether to levy SCST ans CGST or just IGST on the invoice and also the tax rates for SGST,CGST and IGST can be mapped with the item line or not???

It will be based on country India. Currently, GST feature is on develop Branch. To be merged soon.

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Required fields like GSTIN and HSN Code has been added in the Standard print format of Sales Invoice and Purchase Invoice. You can also create a Custom Print Formats using Print Format Builder.

Just wanted to know whether the system would identify the type of taxes to be levied on the sales invoice automatically???

This feature has been not added for now. You should update Tax Rate applicable in the Item master.

Simply put, would system automatically identify whether to levy SCST ans CGST or just IGST on the invoice and also the tax rates for SGST,CGST and IGST can be mapped with the item line or not???

Tax calculation and rendering in the Print Format will be just same, like in the existing system.

I doubt we can do that through existing item master … As per GST if i Sell item “A” within intra-state then I have to levy SGST @ 14% AND CGST @ 14% and When I sell the same Item “A” outside my state of registration then I have to levy IGST @ 28%. At present there is no linkage of item taxes with the customer account.

Please advice.

My suggestion to handle this … in the HSN master you can add 6 columns
SGST, CGST,IGST for sales within state and SGST, CGST,IGST for sales outside state… wherein the users can define the tax rates applicable for both type of sales.

Then at the Sales invoice level system can identify the applicable taxes through HSN (HSN is linked with Item) and Customer GSTIN (if the first 2 Numbers of the customer GSTIN matches with my GSTIN then it is intra-state sales and if they do not match then it is inter-state sales).

Following is how you should manage this in ERPNext.

  1. Create Account for CGST, SGST and IGST (will be auto-created for indian customers)
  2. Two Sales Taxes and Charges master will be auto-created for Inter-state (IGST) and intra-state (SGST and CGST)
  3. For an item, if 28% GST is applied, then for CGST tax enter 14% and for CGST tax enter 14%.
  4. In the Sales Invoice, based on the Customer’s state, select tax master (inter-state or intra-state).
  5. Based on the accounts in the tax master, rate will be fetched from the Item master.

To more help, you can also check how itemwise taxation is managed in ERPNext.

https://frappe.github.io/erpnext/user/manual/en/accounts/item-wise-taxation

3 Likes

@umair What build number in develop has it been merged? I am develop but I can’t see it.

-Amit

You can follow it here:

This is great information. Maybe add it as an article in the ERPNext Manual, because I’m pretty sure this will be a frequently asked question in the days ahead.

The GST Ecosystem has all the taxes item-wise. But they have to represented differently based on interstate or intrastate sale of item. Using tax templates based on different state works best if all invoice items are falling in single GST slab.

But, if single invoice contain multiple items with different tax slabs, using tax & charges table may work. But real limitation arises, when there are two different item-wise tax to be defined, 1) for Interstate 2) for Intrastate.

Can we think of a logic to get GST taxes added per row of item as below?

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My guess will be all three,(CGST,IGST,SGST) will have to become item line specific field only for India. Then we can make an invoice template using print format builder.