Goods and Service Tax (GST) is a great move taken by the central government of India by replacing the existing tax system.
Public still waiting for clarification on many things.
ERP and accounting system used by Indian companies are upgrading their applications to support GST
2. INTRODUCTION
• Goods and Service Tax (GST) is a great move taken by the central government of India
by replacing the existing tax system.
• Public still waiting for clarification on many things.
• ERP and accounting system used by Indian companies are upgrading their applications
to support GST
3. • There are 3 kinds of GSTs
• CGST: Central collects the revenue (Intra State Sale)
• SGST: State collects the revenue (Intra State Sale)
• IGST: Central collects the revenue (Inter State Sale)
4. • If make a sale within the state the tax is shared between Central and State, that
is CGST+SGST .
• For a sale to another state the tax goes to Central that is IGST
5. • There are currently 6 slabs in GST -0% (Non taxable) -3%(Gold) -5% -
12% -18% -28%
• Here how GST is configured in Odoo is explained
• Odoo already has a matured tax system and there we can configure
different type of taxes
6. • First we have to create these taxes.
• Go to Accounting> Configuration> Accounting> Taxes
• Create a new tax for Intra state sale eg: GST 5% (SGST 2.5%+ CGST 2.5%)
7. • Here we are creating GST 5% as a combination of SGST 2.5% and CGST 2.5%
• For that we chose Tax computation as ‘Group of Taxes’
• And set SGST 2.5% and CGST 2.5% are children taxes of GST 5%
8.
9. • CGST 2.5% configuration
• Notice the values given
Tax Computation = Percentage of Price
Amount = 2.5% -Tax account = Choose your preferred account
Now we created GST 5% for intra state sale.
Let’s create same tax slab for inter state sale. i.e. : IGST 5%
10. Create all other tax slabs in the same way.
Now we have to use these taxes in invoices.
If most of our customers are from the same state(intra state sale), use GST tax as
customer tax else set IGST tax.
Because this tax will automatically add into the invoice line when we select that
product.
Same way, most of our suppliers are from same state use GST tax else use IGST tax as
supplier tax
11.
12. • Now tax configuration is completed.
• Let’s have look at the invoice in GST
• Issuing and receiving an Invoice is very important in GST.
• Without issued invoice seller or buyer will not be able to claim input tax credit.
13. A GST-compliant invoices must have these data.
• Invoice Number
• Invoice Date -Customer Name
• Customer GSTIN(if registered)
• Customer Billing and Shipping Addresses
• Place of Supply -Item Details(HSN Code, Description, Quantity, Unit of Measure, Total Value)
• Taxable Value
• Discount
• Tax Rate and Tax Amount as CGST/SGST/IGST
• Whether tax payable on reverse charge basis
• Total amount in words -Signature of Supplier
14. So we must give company GSTIN in company details.
16. Mention HSN Code (Harmonized System of Nomenclature)for products/services in product form
17. • After all these configuration, we need a new invoice format that includes all the details
mentioned above
• On invoice some other extra details can be provided, like, whether the tax payable on
reverse charge basis or not we can check or uncheck this check box
