GST calculation based on Place of supply
Purpose :
The purpose of this feature is to calculate GST based on the customer's shipping address. If the state code of the company where the goods are billed and the state code of the place where the goods get delivered are different, then IGST will be applied to the bill otherwise CGST and SGST will be calculated.
Business process:-
In case of the ecommerce orders, order can be raised from a location of State "A" with the shipping address of a different state "B". In this scenario, GST calculation should work based on the place of supply.
i.e. GST calculation should be done based on the state of shipping address instead of applying the GST based on the billing address.
Supported transactions :
- Sales
- Sales order (normal and e-commerce transactions)
- Delivery note
- Quotation
- Proforma
In order to achieve this, In RetailEasy, we have given a new configuration.
Click on Tools - > Configuration -> Configuration
Search as "GST' and enable the configuration " Calculate GST based on the shipping address"
If this configuration is enabled, the GST calculation is based on the place of delivery of goods. The local/interstate gst is calculated based on the shipping state name.
Also, in the customer shipping address master, an option to select the state has been given while saving the shipping address details which will be visible in the sales screen upon selecting the customer shipping address.
As shown in the image, we can manage multiple shipping address such as home, office, relative's home etc on different locations.
In the billing screen, after selecting the customer name, we can select the required shipping details from the available address and load the items to be billed.
As mentioned in the following screenshot, customer's order location is in Tamilnadu and it is considered as a local transaction where CGST and SGST will be calculated.
Now, after selecting the shipping address where the customer's state is "Tamilnadu" and the goods are going to be delivered to a different state "Karnataka". In this case, it is considered as an Interstate transaction and IGST has been calculated as per the configuration we have enabled.
we can use thee Daybook reports in AccountsEasy to view the detailed calculation as shown in the following screenshot.
Limitations:
1.This will support only for Indian customer.
2.It will not be supported for " Bill of supply " customer type.
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