5 Steps to automate Indian GST in ERPNext

Automating GST just got simple — here is the 5 Step guide to automate your GST Invoicing effectively.

GST is an indirect tax levied upon the supply of goods and services, from manufacturing to sales, it covers all the stages till it reaches the end user making the tax system simple from what it was before.

While making a sale within the state, the tax is divided between Central and State Government (CGST+SGST), whereas when sold outside the state, the tax goes only to Central Government (IGST).

There are currently six main tax slabs of GST which covers different goods and services offered, it can be hard to keep a track of all the transactions which are Inter-State or Intra-State along with what taxes to apply on.

To ease things out and automate these processes, we at Frappe have made a good and an efficient way to configure the taxes in ERPNext in 5 simple steps.

In ERPNext, GST is applied based on the Company’s address and the client’s address.

The key here is to update the GST State field present in Address document type.

Once you have updated your Address Master, it’s time to let the system know which accounts you want to use for GST taxation, to configure, from the search bar, type GST Settings and enter your GST accounts as required.

Likewise, for other tax rates, create different Item Tax Template.

Here, enter your Tax Accounts in Account Heads and leave rest at 0 — reason being, we are fetching the rates from Item Master.

Once done, refresh your ERPNext account and check by creating an invoice or an order, the taxes will be fetched once you have chosen your Customer/Supplier.

ERPNext also comes with preloaded 14000+ HSN codes, GST reports, calculates TDS on the go and with JSON files to file your Tax Returns directly.

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