Issue in automating GST Sales/Purchase Invoice

[pkrulz]

Hello

I followed this link to set up GST. We have GST no from 2 states. So in Step 4, I created 4 Taxes, 2 for each state.

5 Steps to automate Indian GST in ERPNext

I added all three taxes as shown in Step 3 to a GST 18% Item Tax Template and then applied to an item master.

However, when I passed a purchase invoice, this causes all three taxes to be levied, as seen below and not selectively IGST or SGST+CGST.

Is the Step 3 shown in the link correct. If yes what could I have done wrong ?

[Suresh_Thakor]

In the Purchase Taxes and Charges Template
Have you selected Tax Category?

If yes, then there should have two tax as shown in the below table.

[pkrulz]

In the Purchase Taxes and Charges Template, I have 4 Taxes.
Maharashtra InState and OutState
Bihar Instate and OutState

I also have 4 Tax Categories. Since I have 2 States and InState and OutState in each of these.

I have selected the relevant Tax Category in each of the Purchase Taxes and Charges Template.
for IGST

and SGST

Also according to the Steps in the Link, the rates are not to be added in the Template and only to Items

[Suresh_Thakor]

Have you enabled inter state in the tax category for outState?

[pkrulz]

Yes. And since you have to choose a source State thats precisely why I had needed two sets of taxes. One set for each state

[Suresh_Thakor]

@pkrulz

two sets of taxes. One set for each state

if anyone have business in more than one state so no need to assign inGST and outGST state wise. this practice may confuse ahead.

[pkrulz]

So in that case one should not use a Tax Category ?

From the post above, one needs to add a source state for category. How to handle when you have multiple states.

Also, if we don’t have tax category and will the GSTR reports work fine without them

[Suresh_Thakor]

Please refer this thread.

What is the right way to configure GST in India?

Thanks to Frappe Tech support, the issue has been resolved. Here is what I did for itemised taxation: Create GST accounts like CGST 2.5, SGST 2.5, CGST 6, SGST 6 in chart of accounts. Create In State and Out State GST template for purchases and sales (Purchase Taxes And Charges Template & Sales Taxes And Charges Template). In those templates, On Net Total basis, selected CGST 0, SGST 0, CGST 2.5, SGST 2.5 and so on. But we have to set the tax rate as zero only in both sales taxes and charges …

[pkrulz]

My issue was different. Probably the discussion there is one way to avoid it (also my tax rates are automatically populated) but can you please help with this specific part of the problem.

Is the Step 3 shown in this link correct ? Should you add all three under the same tax rate.

5 Steps to automate Indian GST in ERPNext

[Suresh_Thakor]

Yes all the step is correct. I have implemented it in my test server.

Step 3 : It is required to assign 3 tax in item tax template. Also verify that your customer and aupplier have tax category.

At the time of purchase order when you select any supplier, tax category will verify with their address also it will verify with purchase taxes and charges template,
If you have multiple item with multiple tax rate then it will go to verify your item tax template

[pkrulz]

I realised what was causing the error. When the Tax Category rule is present, it automatically populates the In State or Out State GST in the Purchase Taxes and Charges Template before the form probably gets to process some other parts. This causes all taxes to show up.

If we remove the tax from Purchase Taxes and Charges Template and then select the same tax manually after this, the tax rate is correctly updated to contain only IGST or SGST + CGST.

Pretty sure its a bug, that this doesn’t work when tax category automatically populates the Purchase Taxes and Charges Template.