Introduction
In the business world, especially in regions with complex tax systems, it’s important to have a software solution that can handle tax calculations seamlessly. If your company operates different branches with separate GST Identification Numbers (GSTINs), Empress offers you a feature that can automate Goods and Services Tax (GST) calculations for you. This guide will guide you through the process of setting it up, step by step.
Step 1: Updating Your Company’s Branch-Wise Addresses
Firstly, you need to ensure that your company’s branch-wise addresses are correctly updated with the appropriate GSTIN. This is important as the GSTIN can vary from branch to branch, especially if they are located in different states.
Also, ensure that your Customers’ and Suppliers’ addresses have the correct GST State and Party GSTIN configured. This information will be used in the later steps of this process.
Step 2: Configuring State-wise GST Accounts (Optional)
In the Chart of Accounts, you have the option to create a state-wise set of GST accounts (CGST, SGST & IGST). Once you’ve created these accounts, you need to add them to the GST Accounts table from GST Settings. This will ensure that they are included in all your GST Reports.
Step 3: Setting Up Item-Wise GST
For individual items, you will need to set up GST as follows:
- Create an Item Tax Template for different rates and add all the GST Accounts you created in the previous step.
- Define the rates for each item.
This will inform the system about which GST Accounts and Tax Rates to apply in the Invoices. After creating the Item Tax Templates, you can assign these templates to their respective items from the Item Master.
Step 4: Classifying Inter-State and Intra-State Taxes
For each of your branches in different states, you should create two Tax Categories. Each Tax Category will correspond to a specific branch of your company.
You will need to create one category for Inter State transactions and another for Out State transactions. For ‘Out State’ Tax Categories, ensure to enable the ‘Is Inter State’ checkbox.
Step 5: Configuring Invoice Templates
Finally, for each Tax Category you’ve created, you need to configure a set of two Sales Taxes and Charges Templates, and two Purchase Taxes and Charges Templates.
For the IN State template, choose the IN State Tax Category and the appropriate CGST & SGST account in the Account Head.
For the OUT State template, choose the OUT State Tax Category and the appropriate IGST account in the Account Head.
Remember to input your Tax Accounts in Account Heads and leave the rest as ‘0’ - tax rates will be fetched from the Item Master. Repeat this process to configure the Purchase Taxes and Charges Template and for other States as well.
Checking Your Setup
Once you’ve gone through all these steps, refresh your account. To verify if everything works as expected, you can create an Invoice or an Order, select a Customer/Supplier, check the Company’s Address and reselect it to whichever Branch you want to create the Invoice/Order from.
If everything is set correctly, selecting a Customer/Supplier should fetch the right template, and the Taxes and Charges should be fetched correctly too.
This feature can greatly simplify the process of managing GST across multiple branches, allowing you to focus on other important aspects of your business. For additional support or resources, feel free to reach out to our customer support team or browse through our comprehensive set of online guides and guides.