if the supplier or client having multiple GSTIN with respect to warehouse or branch , then what is the standard rule to differentiate them as multiple customer/supplier , or a single person with multiple address having different GSTIN.
Earlier I used to create multiple suppliers - for example - Indigo Airlines (Maharashtra), Indigo Airlines (Telangana) and so on. This created issues when reconciling payments to invoices since it was split against multiple suppliers for the same payment.
A better way is to add addresses to the same supplier and customer. Assuming that you’re using the India Compliance app, the address popup also has a field to enter a GST. Then, when creating invoices, select the correct billing address based on the state. This is much easier to manage and I wish I had started off like this.
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Just to add:
This can depend on how you transact with the supplier.
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Workflow suggested by @nikkothari22 is good where you make advance payments or payments along with the purchase. Most of the transactions that require online payments for the services. This is how we as well set things up.
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In some cases, different GSTIN could mean a different billing dept. This means you may need to maintain separate ledgers, and in such cases it could be still useful to have different suppliers.
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Yes, I am using the India compliance app.In my scenario the some customer and supplier have this issue.
I am ERPNext developer. So my client is migrating to ERPNext. I need to address the issue in data import. Client couldn’t give me a proper feed back. They doesn’t know what will be the effect on the GSTR -1 and GSTR-3B in both scenarios.
GSTIN from transaction is considered in GSTR-1 and 3B → Which is fetched from Address (first preference) / Party.
So it wouldn’t matter how you configure, as long as you ensure correct GSTIN in the transaction.
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