Do we know for certain that every HSN code will use one and only one rate slab? Here is one example of where that is not particularly true at the 4 digit level.
8517 Majority of Networking products 18 percent
8517 Imported mobile phones 12 percent
HSN Codes can either be 2 digit, 4 digit, 6 digit, or 8 digit based on size. I don’t think we should assume that all users must use the 8 digit codes.
Tally doesn’t place rates at the HSN level, and I dont believe Quickbooks or SAP do either. (This conclusion is based on looking through their documentation on GST. If I am wrong, please feel free to correct me.)
Okay. I dont have reliable information to positively confirm this. But i am just imagining how complex it would be to reflect the tax rate in all items if any change happen for a particular HSN.
Anyways,
Do you have any comments on my second question about selecting “In State GST” or “Out of State GST” based on the State codes of Company and Customer automatically without human intervention?
This is not available yet. There are many users that have asked for this. But, there is no timeframe for this feature. If you can contribute resources to make this happen, that would be great!
It would become quite problematic if we assign a tax rate to an item based on the HSN code because :
You will be forced to use the 8 digit HSN code - which is not mandatory for all tax payers, it is mandatory only for tax payers above a certain turnover.
Your IGST, CGST and SGST components will create a conflict - since CGST and SGCT divide the tax by half between them, you need to set in the right parameters and additional checks in your invoice item table.
You can use the following procedure, so that you dont have to choose the In State and Out State manually.
This can be solved in a very simple way using Tax Rule.
Create two customer groups - Out state Customers, In state Customers - make sure to put the customers on the right category.
Create two tax templates - Out state GST(with only IGST) and In state GST(with SGST and CGST)
Create two tax rules - Out state tax rule and In state tax rule.
In tax rule select your customer group and tax template and during your purchase and sales invoicing it gets automatically applied depending on the customer group.
Similarly create the rules for different tax rates and set the priorities for the tax rule.
I think this should solve the problem for the time being.
Hi @ajit.jain1, Our customers have many shipping addresses. Some are in state and some are out state. So we need to have this selection based on the Shipping Address rather than based on the Customer and Customer Group.
@felix,
Sure. We will love to contribute. We are looking at right place to incorporate this change. We want to base it on the Company Address and Shipping Address state codes.
Thanks @rajagopalx for the format. However it is only working for the view. If we try to print it or convert to pdf, it is giving NIL for all the three taxes. Can you please help to resolve it.
He has mentioned that he is not able to get the print. We will need this for print though. @umair how to (if possible) fetch child table values (IGST SGST CGST) rates from item master as a quick fix for now?
This is turning out to be the most important requirement for GST.
It is desirable to include rates instead of trying to “explain” to the authorities.