TAX Engine Extension for GST INDIA with NO CODE

Dear Microsoft BizApps Community,

Welcome to my next blog on TAX Engine Extension for GST INDIA, this blog is a must-be read and is very important, and useful for a consultant, who works for INDIA GST localization.

INDIA GST localization has a very robust TAX localization functionality, with a flexible way of changing or extending the Tax module, by Tax Configuration GST Engine, unlike other countries' Tax setup.

In this blog, I have written down the end-to-end concept and way of extending the TAX engine without any coding.

To get through to it, let me put two simple scenarios by which you can understand the problem statement and solution to it.

Scenario

• HSN 2201 is used for GST 12% and the same HSN is used for 18% RCM as well, the problem is in the RCM component, we cant add the Tax rate type in the standard segment of the GST engine

• HSN 2716 is used for specific vendors with different rates and other rates for all customers/vendors, here this is possible only if we have a Vendor account added as a condition in the GST rate component

Let's deep dive into the solution and how we can add different conditions to Tax Engine.

Steps to follow 

I have made a video with the end-to-end steps, same steps are written below, go as per your best way of understanding this, be it below steps written or the video, both are the same.

[View:/cfs-file/__key/communityserver-blogs-components-weblogfiles/00-00-00-19-31/18.11.2022_5F00_00.02.33_5F00_REC.mp4:1403:539]

Navigate to Organization Administration->> Electronic reporting workspace->> Configuration providers

Create a new provider

You can give any name of the provider, I gave GST extension as below.

Once done, the provider will be available under the tiles Configuration provider.

Set the same as "Set active" from the three dots, see below

Now select the tiles “Tax Configurations”

The below screen will open- click on edit- select “Tax (INDIA GST)" under “Tax Document (INDIA)”

Now, “create configurations”

Now the pop-up will come on the screen, there we need to select the “Tax document derived option” because we will keep everything the same as the standard, and only we will amend the engine as per our requirement.

See below to understand how to do it.

Once done, another node will be created as per the given name and description above, we gave the while creating configuration from the derived model.

The status will be “Draft” now.

Now we need to edit the newly created node and will go to the 'designer' from the action pane, see below

Once we click on Designer, the below form will open, this form is the whole design of the GST engine.

Further expand the GST section and CGST, SGST, and IGST section.

See below.

Now select the GST component like CGST, SGST, and IGST one by one, I shall show you CGST, and the steps will be the same for CGST, and IGST (however it's mandatory to do the changes in all three components).

Now let's select “Reverse Charge Percentage” under CGST (same needs to be done in IGST, SGST)

Under the “Lookups” section- click on ‘Columns’

The new form will come up, from here expand the ‘header’ and then expand further the ‘lines’

Now, all the columns will be available, for our case, we shall add the ‘Tax Rate Type’ into the Reverse charge percentage segment

Select the Condition/Column for our case ‘Tax Rate Type’ then click on the selected column option

Once done, the Condition/Column  for our case Tax rate type will be in the selected columns on the right side, see below

The condition is now added to the CGST- Reverse charge percentage segment.

Follow the same steps in IGST and SGST under the Reverse charge percentage segment.

Once done then save the design and go back to the previous page

Now we need to change the draft status to “Complete” by giving some unique name (any name)

The status is completed

Now we shall go to TAX module->> Tax Configurations->> Tax Setup

Now navigate to “Configurations” (assuming already the Existing setup of GST is there), see below

Now create “New” and select the “configuration version” which we have just completed above, the latest one.

Now save.

Once saved, the “Synchronize” option will be enabled, click on that

Now it is very important, we select the option “Copy tax setup from” to Yes and Select the correct last configuration which has all the setups like Tax Rate, RCM, Load on inventory HSN, SAC rates, etc.

This Synchronization will make sure the newly created Electronic configurations migrate all the setup from the last tax setup.

If not correctly done, this can miss out some setups that we have done recently in the past.

This process will be running on the screen for a couple of minutes based on the data to migrate from the previous setup to the new extended setup

Once done, the successful notification will come and the version status will be “Available”, we shall now activate this.

The extension is done once it is activated, we can now use the same newly amended version, let's see the result in the RCM segment

See below, “Tax Rate Type” column is now available and we can add different tax rate types for the same HSN, based on the same the GST will be calculated.

That’s it for this blog, thanks for watching.

Stay tuned and connected for other blogs like this.