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GST not getting calculated on Sales return order

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Posted on by CU04081252-0

Hi Team,

My client is using Business Central version 27.3 on Indian localization. We have already ran tax engine for them, however GST is not getting calculated on purchase order, Sales order or return order. Can anyone suggest the course of action to get GST calculated.

We have also tried to upgrade the environment yet no success. Is anyone else facing the same issue.

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Dhiren Nagar 2,876 Super User 2026 Season 1 on at

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Hi,

Following are the some setups that you can check.

1 - GST Setup. Make sure you have defined GST Tax type.

2 - Run Tax Engine - After this go to Tax Type -> GST -> In Action Use Case. See if all the use cases are there.

3 - Check GST Rates are defined - Search GST Rates and see the rates are defined for the transaction you want to perform between 2 states or same state.

4 - On the transaction header - Make sure Vendor or Customer is selected and having GST Registration no, type etc details. Make sure Location is selected and it has GST registration no. details.

5 - On the transaction line - Make sure Quantity, Amount, GST Group Code, HSN/SAC Code, GST Credit Availment and GST Jurisdiction type has value.

These are just basics I've mentioned GST Calculation required accurate setups and details for it to calculate.

If there is something specific which is not working you need to say it, if everything is not working then you have to check every setup.

Read this and following blogs - https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/gst-001-basic-setup

Regards,

Dhiren.

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OussamaSabbouh 11,606 Super User 2026 Season 1 on at

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Hello,

In BC 27.3 (India localization) this usually isn’t a bug, it’s incomplete GST master/setup, even if the Tax Engine was run. GST will not calculate at all unless all of these are correctly configured: GST Registration No. on Company + Location, GST Vendor/Customer Type, HSN/SAC on Items/GLs, GST Group Code & GST Credit, GST Posting Setup, and the Location Code must be mandatory on documents (GST is location-driven in India). Also confirm the Tax Engine Setup is Enabled, GST Use Case IDs exist, and the Document Type is mapped in Tax Type Setup. After upgrade, these setups do not auto-fix themselves—especially Locations and HSN/SAC—so re-validate them. In 90% of cases, GST not calculating means missing HSN/SAC or Location GST registration, not a version issue.

Regards,
Oussama Sabbouh

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Khushbu Rajvi. 21,573 Super User 2026 Season 1 on at

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Disable Basic authentication for OData/Web Services and allow only Entra auth in BC server configuration. Once Basic is off, OData will authenticate using Bearer tokens only.

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Sumit Singh 11,751 Super User 2026 Season 1 on at

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Hi @CU04081252-0,

I think you should raise a support ticket with MS as we have already completed the required set ups, like running tax engine, hope, you already check the required set up of HSN/SAC code, GST group code combination for those particular purchase order, sales order along with Vendor and customer master.

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YUN ZHU 98,381 Super User 2026 Season 1 on at

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Localization issues can only be submitted to Microsoft. Currently, Viva Engage (formerly Yammer) is not yet available, so you can only submit a SR) and ask them to assist in the investigation.

Thanks.

ZHU

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