GST Setup for multiple items with different rates

ERPNext Accounting
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21

Ok Its a little more complicated than I thought it would be.

If no tax category is selected, it does show all the items in the item tax template on the purchase invoice however, in the default item tax template we had all variations Input, Input RCM & Output versions for both Within state & Outstate so there are multiple entries in the same voucher for the same item.

Should i remove all the default Item tax templates & purchase/sales tax templates?

Can there not be another filter we use to shortlist which tax accounts appear on the voucher?

22

Hi,

I have started with ERPNext and I am a newbie. However, I have also done a GST setup for a company that is offering products of different tax rates.

I started with the Item tax template, Tax category, and then the Purchase and Sales tax template. But this did not work out for me

So, I made the below setting which worked in my case.

  1. Created item but did not mention the tax rate.
  2. Created different Purchase tax templates on the basis of different tax rates. I also created this template for In-State and Outside State purchases. Eg. - In State GST 5% Purchase, Out-State GST 5% Purchase, In-State GST 12% Purchase etc.
  3. Created different Sales tax templates like purchase templates as mentioned above. Eg. In-State GST 5% Sales, Out-State GST 5% Sales, In-State GST 28% Sales etc.
23

Hi @preksha,

Thanks for this, however I am having an issue when there are multiple tax slabs in the same transaction. i.e. one invoice has items with 5% GST and 12% GST both. The rates getting calculated are based on item tax which gets allocated to all items in the invoice.

24

Ok. The above solution suggested by me will not work in this case.

25

Can someone from @erpnext @rmehta team look into this solution? im sure there is precedence to this situation.

One Invoice having multiple GST Rates (both Sale & Purchase)

26

we ware also looking for this solution but no success
so again switched back to invoice entire invoice with same GST Rate

27

For us it kinda is working now. we have opted for below:

  1. Setup Item with individual Item tax templates

  2. Not defined any tax category (we are skipping this)

  3. We use the Purchase / Sales Tax templates to shortlist which GST accounts are to be used while the rate mentioned on the invoice looks standard as per default set in the template. the actual GST calculated is picked from the item GST

The only problem we are still facin gis how to include Delivery Charges / Freight in the GST calculation - as of now we are mentioning it on actuals by including GST figures in the freight charges itself - this is resulting in exclusion of GST value on Freight from the GST calculations - could become a potential recon issue later for GST purposes.

Can any one help with the last leg now ? :slight_smile:

28

Even we have skipped using tax category.

For freight, add it as a line item if GST is applicable on it. Treat it as a non stock item. And it makes sense this way since it is a GST item and needs an HSN code as well

1 Like
29

Wouldnt it create a stock item for Freight?? In our case delivery charges charged by the supplier or by us are apportioned to the items of the invoice - hence GST also gets apportioned.

I believe in the method you have suggested we will end up creating an item for delivery charges (both purchase & sales) and apply a standard 18% gst on that?

Is that correct?

30

What I am suggesting is to create a Non-Stock Item (Maintain Stock = 0) [Unselect Maintain Stock Flag].

If the Delivery Charges are apportioned in the Item, then why would you want to add it to Sales Invoice as a separate line item? Can you please explain what do you mean by apportining Delivery Charges in item?
Do you mean, if the Selling Rate is 100, it includes Delivery Cost? In this case you wouldn’t want to add Delivery Charges in any form on Sales Invoice right?

If the Selling Rate of item is 100 and you charge Delivery Charge on top of it, then create an Item with Maintain Stock = 0 and use it as a Service item on your Sales Invoice with HSN code and GST rate as Item Tax Template.

31

Hi @Manan_Shah, I got what you meant by non-stock item now.

Will try that.

What I meant by delivery charges being apportioned - was for GST applicability in case there are multiple items in the invoice with different GST rate, the total Delivery charges applied gets factored based on weightage of the item and accordingly GST is factored - but i guess thats not really necessary we can include the charges in item cost as well.

Thanks for this input will try to figure it out based on non-stock item and come back if there is still any observation

1 Like
32

Hello, may i know what version you are using?

33

Unable to get ERPnext to calculate multiple items with different GST rates in invoice

34

Doesnt this affect the PnL incorrectly. As far as i understand, input freight should be direct expense and output freight direct expense.

Correct me if I am wrong.

35

You can set the Expense Account on the Item Master

1 Like
36

Hello,

Here is the tutorial for GST Setup for Multiple Items with different rates

4 Likes
37

This is an excellent go through video with each and every step explained in great detail. I was almost close to figuring out a lot of what you did but was never able to integrate everything together and get it working. You video helped me clear up a couple of misses I had made and I can now get it working exactly as you have shown in the video. Many Thanks!

38

Awesome work, it’s really helpful to the people who don’t have much knowledge about taxation/books of accounts etc. Almost all the points are covered and procedures are perfect in-step. Keep going buddies!!