Hi Readers,
India has launched GST on 1st July 2017, we had implemented the same on our customers. So this
post is most awaiting for me to summarize my steps on how to implement GST in Microsoft
Dynamics NAV 2016. I will try my best to make this post as small as possible.
To start with I want to give an brief intro of 14 Questions which you must ask from yourself before
implementing GST in our MS Dynamics NAV.
These are basically the functional questions which a functional consultant must know.
So let us begin the journey to Understand GST.
Understand GST and Types of GST in Microsoft Dynamics NAV.
Previously we have 2 types of taxes :-
1. Direct Tax (Income Tax & Corporate Tax)
2. Indirect Tax (Central Tax & State tax)
Now we have 3 Types of Taxes :-
1. SGST (State GST)
2. CGST (Central GST)
3. IGST (INTRA State GST)
We have set GST Rate as :-
5%
12%
18%
28%
There will be a 15 Digit GST Number called as GSTIN
State Code 2 Digit
PAN No. 10 DIGIT
ENTITY CODE 1 Digit
CHECK DIGIT 1 DIGIT
BLANK 1 DIGIT
1. Company Information
2. Location Masters
3. Vendor Masters
4. Customer Masters
1. GSTIN 15 Digit CODE for suppliers
2. UID UNIQUE IDENTIFICATION NUMBER from GSTN Portal applicable for UN BODIES and required by supplier supplying goods to these.
3. GID Government Bodies not making outward supply of GST goods but making inter state purchases.
In NAV You can select it in Customer Master Field Name GST Registration Type.
Q4. What are HSN and SAC Code.?
Harmonized System Nomenclature applicable for Goods
Service Accounting Codes applicable for Services.
HSN Code is 8 Digit
IF Turnover is > 5 Crores mention 4 Digits
IF Turnover is 1.5 to 5 Crore mention 2 digits.
For Export and import Mention 8 Digits.
Taxpayer May use 6 digit or 8 digit.
A master Field is provided in Item Table and GL Account for each Item and Service.
They flow in Sales Line and purchase line.
System Validates HSN/SAC Code at the time of applying an advance payment with an invoice.
Purchase lines are also clubbed based on HSN or SAC Code for Reconciliation.
As per GST this is place where services are provided or goods are sold on the behalf of this only
transactions are decided if its inter or intra state.
It can be Buyer's ,Seller's or any other place where goods are delivered or service is provided.
Intra State When location of supplier and place of supply is Same
CGST
SGST
Inter State When location of supplier and place of supply are in different States.
IGST
Place supply is Bill to Address , Ship TO Address or Location Address.
GST Dependency Type Field has been created in Sales & Recievable Setup with above 3 options.
The option must be
Place of supply for sale of all goods and services.
For any GST Group ,
if Place of Supply is diffrent from what is defined in GST Dependency Type then same can be defined in GST Group Setup.
Place of Supply is defined in GST Group Setup then the same flows to GST Place of Supply field in Sales Lines
If it is not defined then GST Dependency Type shall flow to GST Place of Supply Field in Sales Lines.
System validates shipping location state code and place of supply
state code with GST configuration setup for any matching line and triggers the tax accordingly.
Time of Supply for goods & Services:
Invoice Date or Receipt of Payment whichever is earlier.
Time to supply for goods subject to reverse change.
Date of receipt of goods.
date of payment.
date immediately following 30 days from date of issue of invoice by supplier.
Time to Supply for Services subject to reverse charge
date of payment
date immediately following 30 days from date of issue of invoice by supplier.
Time of Supply for Associated Enterprises
date of entry in books of account of the recipient
date of payment
Relevance of time of supply in product design
Time of Supply for creation of General Ledger entries.
When Payable Account is credited in accounting entries.
Tax Invoice A registered taxable person at the time of supplying taxable goods/services.
Self Invoice A registered taxable person who is liable to pay tax under reverse charge for goods or services purchased from a person who is not registered.
Bill of Supply A registered taxable person supplying exempted goods or services
Credit Note issued by supplier
if taxable value in tax invoice exceeds actual tax amount
Return of goods by purchaser
recipient rejects the service
Debit Note
Supplier issues a debit note if taxable amount in a tax invoice is less than actual value of tax amount.
Supplementary Invoice
In Purchase documents , a field Invoice Type is created with options
Invoice
Debit Note
Supplementary
Non-GST
User can select any one at time of posting.
If Invoice type is blank system will pick it as tax invoice.
Self Invoice comes with a posted no. series which can be defined in Purchase & Payable Setup.
In Sales Documents also Invoice Type is created with same options.
In Service Module , Separate posted invoice number series is provided and defined in service setup.
NON GST Purchase must be available in GSTR 2.
NON GST Sold must be available in GSTR 1.
An Invoice type of NON GST has been created in Both purchase and sales documents to capture
NON GST Transactions.
Q12 How Bill of Entry Details are maintained?
For Goods imported
Bill of entry No.
Date and Value is kept in GSTR - 2
Purchase documents contains all this in Tax Information Column.
Fields are mandatory where vendor type is import and purchase lines are of item.
Q13. What are the mandatory Address for B2C supplies?
Address of Buyer in every invoice >=50000
Invoices less than 50000 and no address are reported under GSTR 1
Address and State Code are mandatory fields in customer master.
Q14. How Bill of Export is maintained in NAV?
For Goods exported Shipping Bill or bill of Export No. and date are to be reported in GSTR 1.
Sales Document contain Bill of Export No. and Bill of export date is present in information tab.
These fields are mandatory where Customer Type is Export and sales lines are items.
India has launched GST on 1st July 2017, we had implemented the same on our customers. So this
post is most awaiting for me to summarize my steps on how to implement GST in Microsoft
Dynamics NAV 2016. I will try my best to make this post as small as possible.
To start with I want to give an brief intro of 14 Questions which you must ask from yourself before
implementing GST in our MS Dynamics NAV.
These are basically the functional questions which a functional consultant must know.
So let us begin the journey to Understand GST.
How to setup GST in Microsoft Dynamics NAV for
INDIAN Version?
Step 1.Understand GST and Types of GST in Microsoft Dynamics NAV.
Previously we have 2 types of taxes :-
1. Direct Tax (Income Tax & Corporate Tax)
2. Indirect Tax (Central Tax & State tax)
Now we have 3 Types of Taxes :-
1. SGST (State GST)
2. CGST (Central GST)
3. IGST (INTRA State GST)
We have set GST Rate as :-
5%
12%
18%
28%
There will be a 15 Digit GST Number called as GSTIN
State Code 2 Digit
PAN No. 10 DIGIT
ENTITY CODE 1 Digit
CHECK DIGIT 1 DIGIT
BLANK 1 DIGIT
Q.2 Where we need to update GSTIN Reg. No. ?
1. Company Information
2. Location Masters
3. Vendor Masters
4. Customer Masters
Q3. What is GSTIN , UID OR GID and where are they defined in NAV?
1. GSTIN 15 Digit CODE for suppliers
2. UID UNIQUE IDENTIFICATION NUMBER from GSTN Portal applicable for UN BODIES and required by supplier supplying goods to these.
3. GID Government Bodies not making outward supply of GST goods but making inter state purchases.
In NAV You can select it in Customer Master Field Name GST Registration Type.
Q4. What are HSN and SAC Code.?
Harmonized System Nomenclature applicable for Goods
Service Accounting Codes applicable for Services.
HSN Code is 8 Digit
IF Turnover is > 5 Crores mention 4 Digits
IF Turnover is 1.5 to 5 Crore mention 2 digits.
For Export and import Mention 8 Digits.
Taxpayer May use 6 digit or 8 digit.
Q5. Where HSN/SAC is defined in NAV?
A master Field is provided in Item Table and GL Account for each Item and Service.
They flow in Sales Line and purchase line.
System Validates HSN/SAC Code at the time of applying an advance payment with an invoice.
Purchase lines are also clubbed based on HSN or SAC Code for Reconciliation.
Q6 What is a Place of Supply?
As per GST this is place where services are provided or goods are sold on the behalf of this only
transactions are decided if its inter or intra state.
It can be Buyer's ,Seller's or any other place where goods are delivered or service is provided.
Q6 What are the conditions on which CGST , SGST and IGST is decided?
Intra State When location of supplier and place of supply is Same
CGST
SGST
Inter State When location of supplier and place of supply are in different States.
IGST
Q7 How Navision is handling the impact of place of supply on product design?
In NAV,Place supply is Bill to Address , Ship TO Address or Location Address.
GST Dependency Type Field has been created in Sales & Recievable Setup with above 3 options.
The option must be
Place of supply for sale of all goods and services.
For any GST Group ,
if Place of Supply is diffrent from what is defined in GST Dependency Type then same can be defined in GST Group Setup.
Q8. How Place of Supply is mentained in NAVISION?
Place of Supply is defined in GST Group Setup then the same flows to GST Place of Supply field in Sales Lines
If it is not defined then GST Dependency Type shall flow to GST Place of Supply Field in Sales Lines.
System validates shipping location state code and place of supply
state code with GST configuration setup for any matching line and triggers the tax accordingly.
Q9. How time of supply is handled in Nav?
Time of supply provisions of Model GST Law contemplates when Liability.
Time of Supply for goods & Services:Invoice Date or Receipt of Payment whichever is earlier.
Time to supply for goods subject to reverse change.
Date of receipt of goods.
date of payment.
date immediately following 30 days from date of issue of invoice by supplier.
Time to Supply for Services subject to reverse charge
date of payment
date immediately following 30 days from date of issue of invoice by supplier.
Time of Supply for Associated Enterprises
date of entry in books of account of the recipient
date of payment
Relevance of time of supply in product design
Time of Supply for creation of General Ledger entries.
When Payable Account is credited in accounting entries.
Q.9 What are documents needs to be prepared at GST?
Tax Invoice A registered taxable person at the time of supplying taxable goods/services.
Self Invoice A registered taxable person who is liable to pay tax under reverse charge for goods or services purchased from a person who is not registered.
Bill of Supply A registered taxable person supplying exempted goods or services
Credit Note issued by supplier
if taxable value in tax invoice exceeds actual tax amount
Return of goods by purchaser
recipient rejects the service
Debit Note
Supplier issues a debit note if taxable amount in a tax invoice is less than actual value of tax amount.
Supplementary Invoice
Q10. How NAV is Relevant to a product design?
In Purchase documents , a field Invoice Type is created with options
Invoice
Debit Note
Supplementary
Non-GST
User can select any one at time of posting.
If Invoice type is blank system will pick it as tax invoice.
Self Invoice comes with a posted no. series which can be defined in Purchase & Payable Setup.
In Sales Documents also Invoice Type is created with same options.
In Service Module , Separate posted invoice number series is provided and defined in service setup.
Q11. How NAV is Handling NON GST Supplies?
NON GST Purchase must be available in GSTR 2.
NON GST Sold must be available in GSTR 1.
An Invoice type of NON GST has been created in Both purchase and sales documents to capture
NON GST Transactions.
Q12 How Bill of Entry Details are maintained?
For Goods imported
Bill of entry No.
Date and Value is kept in GSTR - 2
Purchase documents contains all this in Tax Information Column.
Fields are mandatory where vendor type is import and purchase lines are of item.
Q13. What are the mandatory Address for B2C supplies?
Address of Buyer in every invoice >=50000
Invoices less than 50000 and no address are reported under GSTR 1
Address and State Code are mandatory fields in customer master.
Q14. How Bill of Export is maintained in NAV?
For Goods exported Shipping Bill or bill of Export No. and date are to be reported in GSTR 1.
Sales Document contain Bill of Export No. and Bill of export date is present in information tab.
These fields are mandatory where Customer Type is Export and sales lines are items.
