GST Based on Slab Value in D365 Finance & Operations: Complete end-to-end Setup and process

 Business Requirement

Requirement In short: When GST is computed on the basis of threshold limit with the same HSN.

In the clothing and apparel industry, GST levied on clothes depends on the cost of your purchased clothes. GST of 5% will be levied on readymade garments whose price doesn’t exceed ₹1000 and GST of 12% will be applicable on readymade garments whose price exceeds ₹1000.

HSN Code	Description	Rate (%)
6101	MEN'S OR BOYS OVERCOATS, CARCOATS, CAPES, CLOAKS, ANORAKS (INCLUDING SKIJACKETS), WIND-CHEATERS, WINDJACKETS AND SIMILAR ARTICLES, KNITTED OR CROCHETED, OTHER THAN THOSE OF HEADING 6103	5%
6101	MEN'S OR BOYS OVERCOATS, CARCOATS, CAPES, CLOAKS, ANORAKS (INCLUDING SKIJACKETS), WIND-CHEATERS, WINDJACKETS AND SIMILAR ARTICLES, KNITTED OR CROCHETED, OTHER THAN THOSE OF HEADING 6103	12%

So here, GST is levied on the basis of Slab Value with the same HSN.

This blog will explain the Setup and functionality of Dynamics 365 Finance & Operations of using a threshold value for GST computation and any similar scenarios.

Required Setup:

1. Go to Electronic Reporting and create a new Configuration provider and select tax configuration to create a new GST extension

2. Click on Tax (India GST) which is Standard of Microsoft then click on create new Configuration.

Note: we need to create new configuration provider and then the proposed changes will be done in created GST extension because we cannot make changes in standard Tax (India GST).   

3. then click on Designer to add a new column in GST rate. 

4. Expend GST and its all three components select rate and add a new required column for our scenario i.e Assessable Value.

 
5.  Select a new column "Assessable value" as a column in the Rate 

6. Save selected assessable value, two column will be added: 

a.  Assessable value min 

b.  Assessable value max

Note: Repeat this activity for all GST component i.e. CGST, SGST and IGST

7.  Change the status to complete after giving a description

8.  Now go to the TAX Module and click on Tax Setup

9. Go to Configuration to choose the updated GST version.

10. Select new Changed GST Extension and its updated version. Synchronise it with previous GST version to sync all previous GST setup with current version and Set it to activate

11. Activate the GST for Company and Go to setup to define the assessable value

12. Define the value in the Assessable Value max and min column fields as per our scenario.

Note: Now the setup is complete and you can create a sales order and check the GST computation as per the scenario.

Scenario Process Entry:

1A. Create new Sales Order and select relevant GST details in the Tax Information menu

1B. GST is calculated at 12% since Sales Order is of the amount of 2000 which lies in the second slab having a GST rate of 12%.

2A. Create new Sales Order and select relevant GST details in Tax Information menu

2B. GST is calculated at 5% since Sales Order is of the amount 1000 which lies in the first slab having a GST rate of 5%.

 

Thank you 

Happy Learning :)

Tax Configuration Setup in D365 Finance & Operations

Requirement

In the previous blog where we learned how to Import Tax (India GST) from Electronic Reporting. After Importing the Tax (India GST) from Electronic Reporting it is required to do the Tax setup in the Tax module of D365 Finance & Operations as we can see in the below screenshot it is blank. 

To do the complete setup of GST for any legal entity we need to create a Tax setup where the tax rate is defined. So in this blog, we will see how to create a Tax setup, a complete tax rate setup is not covered under this blog.

Configuration Step

1. Go to Tax > Setup > Tax Configuration > Tax Setup.

Click on NEW to create GST setup

After clicking on the save Configuration button got enabled, After this click on NEW under the Companies Fast Tab to add the company for which tax configuration is to be done.

Select the Company and then click on Configuration

2. Tax Setup > Configuration > Tax Configuration

Select the Tax version that has been imported from electronic reporting and that the organization need to activate. 

3. Click Synchronize to sync the selected version of Tax

Dialogue box will Open, Now Click OK

4. After Synchronization Activate button will be enable, to activate the recent version click on Activate    

5. Go to Setup to select the tax type mapping (In our case it is GST)

Addition Information:

1. After Activate Deactivate button will be enabled and NAME and VERSION information will be updated in the field

2. Click on setup to do the Tax rate setup component wise and other information like GST registration number, posting type main account mapping etc.

Thank You!

Happy Learning 

Tax engine import configuration in D365 Finance & Operations

 Business Requirement

To configure the GST Setup for Indian Legal entity in new Sandbox Environment where there is blank in Tax configuration under Electronic Reporting workspace. 

Note: The Tax engine functionality is only available for legal entities with a primary address in India.

Configuration Process

1. Create new Repository for company

2. Click new to create new configuration provider

3. To Make the created configuration provider active click on set active

4. Click on Repository to create Lifecycle Services (LCS) Configuration Repository

5. Create Repository and then click on the link to login with environment credential and give access to LCS

  

6. Authorisation is successful close this success popup and click OK on the previous tab (in above screenshot).

Then Select the project Type and click OK

7. Configuration Repository is created

8. Go to Microsoft Repository to import INDIA tax GST

9. Go to Global Configuration repository and OPEN

10. Click on the link to login with environment credential and give access to D365 FO

11. Authorisation is successful close this success popup and click OK on the previous tab.

12. Now, Configuration repository is Open. Here search for Tax India GST and select the recent version of GST and click on IMPORT

13. Click on Tax Configuration to see the Imported GST version

14. India GST Configuration is imported successfully 

NOTE: Now this imported version can be used in D365 Finance and Operation to do Tax setup under Tax Module.

How to do tax setup in D365 Finance & Operations will be shown in next Blog.

Thank You!

Happy Learning