Dynamics of GST

Goods and Services Act 2017 is scheduled to be implemented from 1-Jul-2017. This post walks you through on the changes being rolled out in ERP One.

Party Master at branch level will contain GST registration Number.
GST Registration type will identify whether the party is registered, unregistered or composite dealer.
A new Customer type will describe whether the party is a Business or Consumer.
State code is now mandatory. Otherwise System will not allow to save an invoice, purchase bill or debit credit note.

ERP One now has a concept of home state. For example, if you have two units from where you do invoicing one at Daman and another at Mumbai, you will designate a Unit Number to each of them.
Each unit will be assigned a State code.
You also need to specify your own GST registration number against each of your units. Taxable person and turnover also needs to be specified for each of the units.

GST Rates master will be maintained by System. Users will not be able to create/ modify/ delete any rates in this master.
GST Rates master will have 4 rates viz., 5%, 12%, 18% and 28%.
Besides it will also contain NIL rated, Exempted and Non-GST Supply rates.

All the existing invoice types (viz., product, labor, import, trading etc.) will become inactive on the effective date for GST.
New GST sub-types of invoices for Domestic and Export will be introduced.
For invoices to be generated under Reverse Charge Mechanism, a sub-type of invoice will be available.
In case of Reverse Charge Invoice, System will not post the basic value to Sales account.
System will also store whether the GST type is Goods or Service.
System will read the state code of the Customer and compare it with the home state code of the unit from where invoicing is being done.
If party's state code and home state code are different, System will apply IGST. Else it will apply SGST/CGST/UTGST.
GST will be applied at each line level of invoice.

Existing purchase bill types will be deactivated on the effective date of GST.
New bill types for Domestic or Import purchases will be introduced.
GST type will be input to the System viz., Goods or Service.
GST rate will be applied by System based on the Inventory Master, if the party is registered under GST.
If the purchase bill is from Unregistered party, System will allow to create sales invoice against it.

Debit credit notes will have identical structure to invoice/ purchase bill.
Provision to create Debit credit notes against Dummy Reference will be deactivated from effective date for GST.

ERP One will facilitate creation of Excel sheets from sale invoices in the specified formats as notified.
Users will be able to copy/paste into third party applications to convert XL data into JSON for uploading to the GSTN.
Similarly data from purchase bills will be exported to XL from ERP One for further processing and matching.
When the API for the JSON file is released to the public domain, we will work on creating the uploadable JSON file from our System.

Sales Orders will have a new parameter [Is GST Applicable?]. If Yes, excise and sales tax will be made [Not Applicable] and GST Rates will be accepted at line level.
Printing of Sales Order will also be suitably amended.

Purchase indents will have a new parameter [Is GST Applicable?]. If Yes, excise and sales tax would be made [Not Applicable] and GST rates would be accepted at line level.