Goods and Service Tax (GST) is the great move taken by the central government of India by replacing the existing tax system. The public still waiting for the clarification on many things. ERP and accounting system used by the Indian companies are upgrading their applications to support GST.
There are 3 kinds of GSTs
- CGST: Central collects the revenue (Intra State Sale)
- SGST: State collects the revenue (Intra State Sale)
- IGST: Central collects the revenue (Inter State Sale)
If making a sale within the state the tax is shared between Central and State. Ie: CGST+SGST For a sale to another state the tax goes to Central ie: IGST
There are currently 6 slabs in GST -0% (Non taxable) -3%(Gold) -5% -12% -18% -28%
Here I am explaining how we can configure this GST in Odoo.
Odoo already has a mature tax system where we can configure different type of taxes.
First, we have to create these taxes.
Go to Accounting> Configuration> Accounting> Taxes
Create a new tax for Intra state sale Eg: GST 5% (SGST 2.5%+ CGST 2.5%)
Here we are creating GST 5% as a combination of SGST 2.5% and CGST 2.5% For that we chose Tax computation as ‘Group of Taxes’
And set SGST 2.5% and CGST 2.5% are children taxes of GST 5%
SGST 2.5% configuration
CGST 2.5% configuration
I hope you have noticed the values given
- Tax Computation = Percentage of Price
- Amount = 2.5% -Tax account = Choose your preferred account.
Now we created GST 5% for intrastate sale. Let’s create some tax slab for interstate sale. Ie : IGST 5%
Create all other tax slabs in the same way. Now we have to use these taxes in invoices.
If most of our customers are from the same state(intrastate sale), use GST tax as customer tax else set IGST tax. Because this tax will automatically add the invoice line when we select that product.
Same way, most of our suppliers are from same state use GST tax else use IGST tax as supplier tax
Now tax configuration is completed.
Let’s have look at the invoice in GST
Issuing and receiving an Invoice is very important in GST. Without issued invoice seller or buyer will not be able to claim input tax credit.
GST-compliant invoices must have these data.
- Invoice Number
- Invoice Date -Customer Name
- Customer GSTIN(if registered)
- Customer Billing and Shipping Addresses
- Place of Supply -Item Details(HSN Code, Description, Quantity, Unit of Measure, Total Value)
- Taxable Value
- Tax Rate and Tax Amount as CGST/SGST/IGST
- Whether tax payable on reverse charge basis
- Total amount in words -Signature of Supplier
So we must give company GSTIN in company details.
We should mention our customer’s GSTIN in partner form
Mention HSN Code (Harmonized System of Nomenclature)for products/services in product form
After all these configurations, we need a new invoice format that includes all the details mentioned above.
On invoice there some other extra details you can provide. Like, -Whether the tax payable on reverse charge basis or not We can check or uncheck this checkbox
-Transport details -Transportation mode -Vehicle number -Date of supply -Place of supply
So we created a new template for Invoice.