GST Features in ERPNext

GST Features in ERPNext

1. Setting up Company and Masters

You must continue to keep track of the GSTIN information for each of your clients and suppliers per GST Legislation. GSTIN is connected to Address and Parties in ERPNext.

1.1 Update GSTIN Information for your Company

Edit the company's GST details. Based on the GST Category that has been selected for your business, GST Validations will be applied to all transactions for your organization.

Create or update your company address and include the necessary GST details.

1.2 Create Customers and suppliers

Create or update your customers and suppliers with GSTIN details in a similar manner. Also, they must be updated with the parties' pertinent addresses.

Based on this master, GST will be applied and verified to a particular transaction. The address will be used to retrieve the GST Information initially. If the Address is not included in a transaction, the Customer or Supplier's preferences will be followed.

2. Pre-Packed Configurations

2.1 HSN Codes

Your itemized invoices must include the HSN Code for that item in accordance with the GST Law. All 12,000+ HSN Codes are already pre-installed in ERPNext, allowing you to choose the appropriate HSN Code for your Item with ease.

2.2 Tax Accounts

With fresh installs, your company's default GST Accounts are created.

2.3 Tax Templates

Your business has default Sales and Purchase Tax Templates set up.

2.4 Item Tax Templates

You receive item tax templates that are already set up for your business for various tax rates. They are helpful when you want to configure item tax rates that are different from those in the basic Sales and Purchase Tax Templates.

2.5 GST Accounts in GST Settings

Where GST Accounts are generated automatically, your company's GST Settings are automatically changed to reflect this. This would guarantee accurate GST Reports and GST Validations.

Where you wish to have different default settings, you must configure them manually at all the above places.

3. Making GST Ready Invoices

You are prepared to create GST Ready Invoices if you have configured your tax template, as well as the GSTINs of your customers and suppliers.

3.1 Creating Sales Invoice

Choose the Customer and the Merchandise first.
Verify that your company's and the customer's GSTINs are accurately entered.
Verify that the HSN Number has been entered into the item appropriately.
Choose an out-of-state GST or in-state GST tax template.
Save and send the bill.

3.2 Printing GST Tax Invoice

Please choose the GST Tax Invoice print format if you want to produce a tax invoice following GSTN requirements. The company address, GSTIN numbers, HSN/SAC codes, and an itemized tax breakdown are all included in this print format. Also, choose the appropriate value for the Invoice Copy field when printing to indicate whether the invoice is for the customer, supplier, or transporter.

4. GST Transactions

4.1 Reversal of Input Tax Credit

Go to Journal Entry doctype and take the following actions to book an ITC reversal.

Choose "Reversal Of ITC" as the entry type.
Depending on the type of reversal, choose "Reversal Type" and "As per rules 42 & 43 of CGST Regulations" or "Others."
Decide which Business Address (GSTIN) should have ITC reversed.
Complete the accounting entries as shown below, filling in the accounts and sums.
Conserve and send

5. Setting up reverse charge and posting reverse charge purchase invoices

5.1 Add reverse charge accounts in GST Settings

As illustrated in the image below, add GST reverse charge accounts and choose "Is Reverse Charge Account" as necessary. The Output GST tax account used for sales can also be identified as a reverse charge account in place of a separate reverse charge account.

5.2 Making purchase invoices liable to reverse charge

Please take the following actions to subject purchase invoices to reverse charge invoices:

As usual, add items to the invoice after choosing the supplier.
Reverse Charge Applicable as "Y" should be selected in the GST Details Section.
If GST paid is eligible for input tax credit, in "Eligibility for ITC" select "ITC on Reverse Charge"
"Add" taxes using the usual Input Tax account heads
Use the reverse charge accounts to "deduct" the same amount of taxes, making the net GST owed by the supplier 0 in total.
Save and Submit

Please follow the steps below to automate this procedure and avoid selecting accounts by hand.

Create a reverse charge tax category.
In the relevant supplier masters, update the tax category.
Build a template for purchase taxes and charges for a reverse charge.
Once this setting is complete, the relevant Purchase Taxes and Charges Template will be applied upon supplier selection.

6. Reports

The majority of the reports you need to prepare your GST Returns are included with ERPNext. Navigate to Accounts and select the GST India heading.

In the GST Sales Register and GST Itemized Sales Register, you may determine the impact of your invoice.