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GST is not being calculated for foreign customers when creating a Sales Order.

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Posted on by AK-20110909-0

Urgent: Production is currently halted as GST is not being calculated for foreign customers when creating a Sales Order. Additionally, a new issue has arisen — when selecting a Ship-to Code, a state-related error is appearing, which did not occur previously. Immediate attention is required to resolve these issues.

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Dynamics 365 Business Central

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Sumit Singh 9,997 on at

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Are you using Indian localisation? Also, could you please share the error screenshot.

May be you need to run the tax engine in append mode in case the use case has been modified or changed.

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DAnny3211 11,397 on at

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Hi AK-201130090,

Thanks for reporting this urgent issue. Here are a few things to check that might help resolve the GST calculation and Ship-to Code error in Dynamics 365 Business Central:

1. GST Calculation for Foreign Customers

Verify that the GST setup includes rules for foreign customer groups.

Check the VAT/GST Posting Setup to ensure that the correct combination of customer and item posting groups is configured.

Make sure the customer’s country/region code is correctly mapped to GST rules.

2. Ship-to Code State Error

This could be due to a missing or mismatched state code in the Ship-to Address.

Check if the state field is mandatory in your localization settings and whether the selected Ship-to Code includes a valid state.

Review any recent updates or customizations that may have introduced stricter validation.

3. Immediate Workaround

As a temporary fix, try manually entering the state in the Ship-to Address and verify if GST is calculated when using a different customer or item combination.

If the issue persists, I recommend contacting your Business Central partner or Microsoft support for immediate assistance, especially since production is impacted.

Let me know if this helps, and please mark the response as helpful if it answered your question 😊

Best regards!

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YUN ZHU 95,329 Super User 2025 Season 2 on at

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Hi, hope the followng can give you some hints.

https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/gst-sale-to-foreign-customer-service?wt.mc_id=DX-MVP-5004336

Thanks.

ZHU

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Andrés Arias 4,188 Super User 2025 Season 2 on at

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Hello,

If there have been any recent updates, I would recommend reviewing the tax and customer group settings.
It would be possible to raise a ticket with the partner for their attention.

I hope this helps.

Regards,

Andrés

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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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adding more details

https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/gst-sale-to-foreign-customer-service

✅ Mark this answer as verified if it helps you.

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