GST Setup for multiple items with different rates

ERPNext Accounting
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1

Hi,

We have items with multiple GST rates in our portfolio. What would be the ideal way to setup the taxes (GST) for such a scenario? We sell both within and outside the state.

Should we create multiple tax templates for each rate category - say 12% & 18% and further add Within State & Outside state in Tax category? - if we go for this option, how do we define the tax accounts in the template to select or apply basis the customer’s location - i.e. only IGST to be applied or SGST & CSGST to be applied

Or have one template for Within state and one for outside state - if this option is better how do we define the rates for different items.

Also, we would like to have an option to add Delivery Charges, but if we select the tag as “On Actuals” in the Sales Charges & tax template - we are forced to add the amount while saving the template itself. - is this a bug?

2

Please find link, here is the better article over GST Setup.

3

Thanks @Suresh_Thakor i followed the steps on the blog however Im not able to fetch rates or Tax amounts in a Sales order. Sharing snapshot for reference

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I think there is some issue here - if we have no rate setup in tax template it should pick from item rate however right not i am forced to put a rate as 0 since its a mandatory field in ERPNext 13.

how do we make it non-mandatory?

I believe this is also a reason why we are not able to put a field for Delivery Charges in the tax templates - once we put the value there it doesnt get updated at the Sales Order / Invoice level

If this is a bug, can someone provide a fix and report this issue?

5

Any body know how to make the rate non-mandatory? i believe in the previous versions it was but not in 13 anymore

6

@Aditya_Bagarka
you should check this.

  1. Account Head selected in sales tax charges template should available in item tax template.
  2. Selected tax category in order or sales tax charges template should be same as define in item tax table(If you mentioned tax category in item tax table. Ignore if you did not assign any tax category in item tax table)

If you can share more screen shot of your item tax template and item tax table then someone can help you.

I have checked in my version13 and it is working fine so there is no bug.

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have two items being quoted. one is 18% and other is 28% as per item tax template. not selected tax category or sales tax template so that it may pickup item tax…

item tax template is giving alot of trouble

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Hello… did you solve this? i am facing the exact issue.

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Do you have a multi company setup?
In version 13 item tax template has a company as well

You have to create a separate item tax template for each rate and map on items

10

Hello thank you for replying…
No we only have 1 company setup with two branch addresses. and we followed this stepshttps://frappe.io/kb/accounting/setting-up-gst-for-multiple-branches

11

GST setting in v13 is a little weird, even I am facing some random issues.

12

Not really. But you can delete the tax category from item tax table in master. It helps but the setup is not straightforward.

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We added a tax category and followed the same steps… surprisingly it worked in version 13.

14

I’ve still not found a solution to this…any luck with others?

15

I’ve followed the steps mentioned in documentation to the T.

i.e. have created “item tax templates” and assigned them to individual Items; have also removed the rates in default Purchase tax template to 0 - but this only lead to no tax being calculated in the purchase invoice.

We have transactions where items have different GST rates - how do we set this up??

16

did you set up tax rule also?

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No. How do i do that? and any specific configurations for that?

18

Yes.
Follow this documentation: Tax Rule
Also, make sure that you have created a tax category and added it to the sales tax and charges template

19

Hi @sabiyamalbari thanks for this. Not sure how a tax rule takes care of multiple GST rates in the same invoice (both purchase / sale)

Right now my setup is as below. (default templates that came in the setup):
Purchase Tax & Charges - has 4 items various Input GST In-state; Input GST Out-state; Input GST Instate RCM & Input GST Outstate RCM
vice versa for Sales Tax & Charges

Item Tax Templates for each Tax slab 5%, 12%, 18% & 28%. Each tax template has rates defined based on the slab for Output SGST, Output CSGST, Output IGST; Input & RCM so on and so forth

Tax Category has Out-state, In-state, Composition, RCM In-state & RCM Out-state this is assigned to each buyer/seller based on their address so this takes

I have enabled Automatically Add Taxes and Charges from Item Tax Template in Account settings and assigned Item tax template to each item based on their respective tax slabs. - This was suggested in the ERPNext Documentation

However when i am using multiple items with different tax rates it captures GST amounts only based on 9% CGST & 9% SGST considering its a local purchase and thats the rate set up in Purchase Tax & Charges as default.

How I have added the Item specific rate in Item

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I went through the documentation on ERPNext and nothing else was mentioned to be setup.

I’m sure this is a common scenario and someone may have already cracked it. Need help on this as it is now affecting our decision on whether to go ahead with ERPNext implementation or not.

1 Like
20

Hi,
I suggest you remove the tax category from each buyer/seller address and see if proper calculation is done or not. however, make sure the state is correct in the address of customer/supplier.
Following were the steps we followed:

  1. GST settings setup
  2. Tax category creation
  3. Sales/Purchase tax template(in this step we linked/added the tax category also)
  4. Add item tax template
  5. Tax rule creation(we followed this step, because in the quotation the tax calculation wasn’t done-you can skip this step if you want)

After this, we added the tax template for an item.