Tax Integration

Implementation Updated by Implementation

What is Tax Integration?

Tax Integration is a setting which allows system to calculate and apply tax automatically on a transaction while posting.

Overview

In Tax Integration User assigns ledger and transaction type to tax and on this basis, system applies tax to the transaction.

Use Case

Suppose there is a firm “XYZ Ltd”. They need to post different transaction effected with tax. And they don’t want to apply tax manually on every transaction.

With the help of this option, they can assign transaction type and General Ledger of taxes in CGST,SGST & IGST plus cess. And at the time of posting it will pick the right accounts.

Steps to be performed to Create HSN

1.Go to GST

2. Go to Apps-> Subscribe and Activate the GST App.

3.Go to settings-> Click on “Tax Integration”.

Here we will show you how to integrate tax with every transaction type

4.Purchase & Purchase Return-> i)Select Tax Code ii)Select document type as purchase iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue. User will repeat same in case of purchase return. Just document type will be purchase return.

a)Purchase from Outside India-> In some cases, government has a rule to apply GST with reversal in same entry. For that user needs to tick import option and a separate option for IGST Cr will appear on page. User need to select a ledger which will credit with tax amount. Click on save & continue.

4.1.Sale & Sale Return-> i)Select Tax Code ii)Select document type as Sale iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue. User will repeat same in case of Sale Return. Just document type will be Sale Return.

a)Sale Outside India-> In some cases, government has a rule to apply GST with reversal in same entry. For that user needs to tick export option and a separate option for IGST Dr will appear on page. User need to select a ledger which will debit with tax amount. Click on save & continue.

4.2.Purchase Note: i)Select Tax Code ii)Select document type as Purchase Note iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue.

4.3.Sale Note: i)Select Tax Code ii)Select document type as Sale Note iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue.

4.4.Outsource Job Work: i)Select Tax Code ii)Select document type as Outsource Jobwork iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue.

4.5.Fabrication Clearance: i)Select Tax Code ii)Select document type as Fabrication Clearance iii)Select respective ledger is CGST, SGST, IGST & Cess. Click on save & continue.

4.6.Journal RCM: For Reverse charge we have provided an option in Journal Voucher. i)Select Tax Code ii)Select document type as Journal RCM iii)Now user will see Credit CGST, SGST, IGST & Cess and below that Debit for same. Select all respective ledgers and click on save & continue.

Note: User can change Integrations any time as per need.

5.Report->Click on report to see saved settings report.

5.1: Here user can all saved data in setting Tax wise. Click on download to get report in excel. To go back to Tax Integration page click on add.

How did we do?

TAX Creation

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