How to Calculate Sales Tax

ERPNext
1

Dear All,

We sell a product as follow:
Item Retail Price: Rs. 7900 included 17% GST amounting to Rs.1147
Net of Tax Price to consumer: Rs. 6753 which includes our margin of Rs. 1687

But on purchase side the manufacture collects the whole amount of Tax (Rs. 1147) in his purchase
invoice.

Consumer Price: Rs. 6753
Less Margin: Rs. 1687
Net Payable to Manufacturer: Rs. 5066
Plus GST 17% Included in Consumer Price: 1147
Total Payable to Manufacturer: Rs. 6213

How do I setup the tax template for such a case? As our GST payable is nill because whatever we collect from the customer has already been paid to manufacturer.

The manufacturer doesn’t charge us 17% on the Net Total, he charges us 17% Tax included in the end retail price.

2

Have you found a solution to this. Usually sales tax payable should be the difference between your taxes from sales(output) and ITC from purchases. But I dont think ERP next automatically calculates this difference and show it in the tax payable amount.
Please let me know if you have found a solution for this
This is how I have setup my leger heads for each rate of GST, I want ITC on purchases to be automatically adjusted with these rates. How can I do that?

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