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What is the right way to configure GST in India?

I am playing around with ERPNext with the intention of using it in a supermarket in coming weeks. I have few queries about the way we are supposed to configure few crucial things since the official documentation is not clear on these parts. Apologies in advance if I sound silly.

  1. Since we will be dealing with 0%,5%,12%,18% and 28% category products, how are we supposed to configure GST in India?. In Sales Taxes And Charges Template, do we have to create two heads i.e In State GST and Out State GST; then add all applicable CGST+SGST & IGST rates under them OR do we have to create separate heads like In State GST 5%, In State GST 12%, Out State GST 5%, Out State GST 12% and so on?.

Yes.

You can use same ledgers in multiple sales and charges templete or you could create seperate ledgers for different rates.

I personally prefer separate ledgers, so that I can look at General Ledger report for each ledger.

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Thanks for the help. I have configured separate ledgers for each tax slab and updated same in sales/purchase taxes and charges template. However, when we try to create a sales invoice, the tax figures are not getting automatically populated. We have to enter taxes manually each and every time. Why is it happening so?.

Once we enter the sales tax while adding new products and create invoices it should automatically populate the product specific tax values right?. But its not happening in my case. What am I missing here?. And also, how do we make Out Of State GST values populate automatically in case the billing address is out of state?.

Sorry if my question is too basic. I am using ERPNext: v11.1.30 (master), Frappe Framework: v11.1.28 (master), Journeys: v0.0.1 (master). My account is hosted on ERPNext.com cloud.

Thanks in advance.

Can someone please be kind enough to help me?. The tax values as well as price are not at auto populating now. How do I fix it?.

Here is what I have done so far:

  1. Created GST 0% (CGST 0,SGST 0, IGST 0), GST 5% (CGST 2.5,SGST 2.5, IGST 2.5) GST 12%, GST 18%, GST 28% in Chart of accounts as shown in the screenshot.

  2. Then in Purchase Taxes and Charges Template , Created: In State GST 0% (CGST 0%,SGST 0%), Out Of GST 0% (IGST 0%), In State GST 5% (CGST 2.5%, SGST 2.5%), Out Of State GST 5% (IGST 5%)… Likewise added 12%,18% and 28% for purchases taxes template.

  3. Created Sales Tax And Charges same as above. Separately entered In State GST 0, 5,12,18 & 28%. Here also CGST,SGST and IGST have been properly entered.

  4. Then added couple of products, added their individual tax rates, HSN codes. Also linked these accounts to GST Settings.

  5. Added couple of B2B and B2C customers. Ensured that their billing address, shipping address, GST information, place of supply etc are entered.

  6. Now, based on my experience with other softwares like Zoho, Intuit etc, whenever we create Purchase Order, Sales Invoice etc documents, the tax rates should automatically be populated. But in our case, it’s not happening. We are manually adding tax rates of each and every line item every single time.

Now my question is, is this normal/intended behavior by ERPNext?. If yes, what’s the workaround for this issue; we will be making hundreds of invoices per day. It won’t be possible to handle ERP Next like above.

If this is not a normal behaviour, where am I doing wrong?. Can someone please help me.?.

Please check if the templates (Both Sales and Purchase) have the percentages mentioned or not.



This is how it is configured now. All tax rates are specifically mentioned. What am I missing here ?. I am really new into this and would appreciate some heads up.

Can anyone please help me on this?. Have been trying to figure out what to do. Nothing seems to work out.

@HaroldOsprey did you get the solutions for this ?

Thanks to Frappe Tech support, the issue has been resolved.

Here is what I did for itemised taxation:

  1. Create GST accounts like CGST 2.5, SGST 2.5, CGST 6, SGST 6 in chart of accounts.
  2. Create In State and Out State GST template for purchases and sales (Purchase Taxes And Charges Template & Sales Taxes And Charges Template).
  3. In those templates, On Net Total basis, selected CGST 0, SGST 0, CGST 2.5, SGST 2.5 and so on. But we have to set the tax rate as zero only in both sales taxes and charges template as well as purchase taxes and charges template.
  4. Then while adding the items, you need to properly select the item tax and enter the tax rate. Once you do that ERP will pickup that rate for each invoice.

If you need more explanation let me know.

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In the chart of accounts - do you roll up the individual GST accounts into one group account - GST Payable? So Net GST collected from customers and paid to suppliers can be summarized for the quarterly filing?

Thanks for the details. I will try and let you know if face any trouble

Here is my use case:

  1. I have 15 branches all over india in different states with different GST Registeration (obviously).
  2. I have created these branches as Cost Centers (because branch had no effect except being on employee transfer, not even in ledgers, etc.)
  3. An 18% GST Item when being sold to a customer in MP should auto-apply C/SGST. So I though of putting Out-of-state Tax Category on the customer shipping address.
  4. Problem is; the same customer is also being shipped from a different cost center in “MH”, in this case, system should apply IGST