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Determining GST in Microsoft NAV

During NAV implementation the functional team has number of things to consider specially regarding GST now a days. In case of  multi currency and multi tax authority, this is being more complicated as well. I have summaries the GST determination for the Indian prospective below.

The recommended method of determining Goods and Services Tax (GST) and Jurisdiction are the Ship From and Ship To locations. If Ship From and Ship To entries are from different states it is an interstate transaction and if they are from the same state, it is an intrastate transaction. In respect of service, a service type will further identify the tax state. Imports are subject to Customs duty and Integrated Goods and Service Tax (IGST). Tax applicable within India is the Interstate IGST, the Intrastate Central Goods and Service Tax (CGST), the Union Territory Goods and Service Tax (UGST), and the State Goods and Service Tax (SGST).

To determine GST on a Payables voucher, the parameters for each voucher line are passed to the tax engine and the following information, among others, is returned and stored in respect of each voucher line:

  • Transaction Type
  • Tax rate Code
  • Ship To Location
  • HSN/SAC Code
  • Tax Item Type
  • Reverse Charge Indicator

All vouchers created and posted in the period prior to GST can only be viewed and cannot be edited. Vouchers created and posted during GST regime cannot be unposted, if the voucher has been selected for extraction to the reporting tables.

There is another specs as well, Special Economic Zone (SEZ) business units which procure goods and services from outside the economic zone. You can configure your GST setup as follow:
  • A new Supplier Tax Category, for example – SEZ should be created.
  • Create a new tax determination rule for every state where a business unit procures goods and services from non SEZ areas within the same state
In case of advance payment, GST on provisional basis will be determined and accounted to the debit of provisional input credit accounts as set up at the Tax Calculation code levels. You can download the white paper released by Microsoft for Whitepaper NAV 2016 GST Patch.
You can connect with your account department or finance team to understand the complete information regarding GST applicable product and services before taking any decision. Even Reverse Charge Applicable Transactions need to understand with them before implementation.

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