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GST Setup for India localization

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Posted on by VK-25110910-0

Hi all,

I have already set up the GST rates for both interstate and intrastate transactions in my Business Central Indian Sandbox environment. Additionally, I’ve configured the GST group code and the HSN code on the item cards.

However, when I create a Purchase Order, GST is not being applied to the total amount in the Purchase Order subform.

Could anyone suggest if there are any additional configurations or setups related to GST that I might be missing

Thanks in advance for your help!

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Dynamics 365 Business Central

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Gerardo Rentería Ga... 25,555 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

GST Setup for Smarter Tax Management in Business Central

GST Setup in Dynamics NAV / Business Central

Best Regards
Gerardo

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OussamaSabbouh 12,808 Super User 2026 Season 1 on at

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Hello,

As per the help of the AI

If GST isn’t calculating on the PO, it’s almost always because GST Posting Setup is missing or mismatched.

You must have valid combinations for:

GST Business Posting Group (vendor)

GST Product Posting Group (item)

GST Group Code

Tax components (CGST/SGST/IGST)

Also ensure:

Vendor State vs Company State is correct

(same state → CGST+SGST, different state → IGST)

Location’s State Code is set (if using Locations)

HSN/SAC matches exactly

If any of these are missing → GST = 0.

Regards

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YUN ZHU 99,055 Super User 2026 Season 1 on at

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Hi, hope the following can give you some hints.

https://www.youtube.com/watch?v=vEGv1Vn445A

https://navisionindia.in/blog/streamline-tax-management-with-gst-setup-in-business-central/

Thanks.

ZHU

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Aman Kakkar 2,977 Super User 2026 Season 1 on at

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Hi,

If you prefer understanding in Hindi, I would recommend watching this YouTube video by Dynamics Indiallectuals - Overview of GST Tax Engine in D365 Business Central (IN) | | Session - 05 - YouTube

If you do not prefer/understand Hindi, then you can check out the below mentioned -

How To Configure GST Setup In Dynamics 365 BC | Important

GST Setup in Dynamics NAV / Business Central

Do mark as verified if this helps.

Aman K

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Rishabh Kanaskar 6,219 Super User 2026 Season 1 on at

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Hi,

Have you check these:

> Vendor must have GST Registration Type and GST Registration No.
> Vendor Location must have State Code defined.

> Each location used in the transaction must have State Code defined for interstate/intrastate determination.

Thanks

Rishabh

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Jainam M. Kothari 15,732 Super User 2026 Season 1 on at

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Hello,

Please select the "GST Credit" as Availment in Item Card, which is Blank currently.

And check the "Use case" of that Particular Transaction.

May this can help :https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/gst-001-basic-setup

https://www.cloudfronts.com/blog/d365-business-central/step-by-step-guide-to-gst-setup-in-business-central-for-indian-companies/

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