GST rate change causing mismatch between pre and post Sept 22 transactions

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Posted on by SJ-16091251-0

We have Indian localization legal entity. Within that, we now need to configure new GST tax rates that are effective from September 22, 2025. We see that there will be a mismatch between below transactions.
-The Sales order invoiced before Sept 22 and credit note posted after 22nd.
-The Purchase order for which invoice date is before Sept 22nd, and Bill of Entry will be after Sept 22nd.

With these transactions, there will be mismatch in the totals and hence the financial statements. Please advise as to how this can be handled. We have already setup Transaction date and Invoice date under HSN codes.

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Dynamics 365 Finance

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CA Neeraj Kumar 1,202 on at

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GST rate change causing mismatch between pre and post Sept 22 transactions

Hi,

I don't see any challenge here.

1) Sales order and Credit note:

While creating credit note, we have option to keep tax same as of Sales invoice, so it is always in control, if business requirement is to keep the older rates - taxation, then it will keep the old one.

2) Purchase order > Invoice date > BOE

Since BOE is finalized by Govt, so whatever rates are given by government, that should be taken into account while booking the Invoices, and since it is case of Foreign Vendors, so no GST component would be there other than GST receivable mentioned in BOE.

Please let me know if there are further queries on how to do above transactions.

Regards,

Neeraj Kumar

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