Redaguoti

Bendrinti naudojant

Define HSN codes and Service Accounting Codes

  • Straipsnis

To make the India localization solution for Goods and Services Tax (GST) in Microsoft Dynamics 365 Finance available, you must complete the following master data setup:

  • Define a business vertical.
  • Update the state code and union territory.
  • Create a Goods and Services Tax Identification Number (GSTIN) master.
  • Define GSTINs for the legal entity, warehouse, vendor, or customer masters.
  • Define Harmonized System of Nomenclature (HSN) codes and Service Accounting Codes (SACs).
  • Create main accounts for the GST posting type.
  • Create a tax settlement period.
  • Attach the GSTIN to a tax registration group.

Define HSN codes

  1. Go to Tax > Setup > Sales tax > India > HSN code.
  2. Create a record.
  3. In the Chapter field, enter a value.
  4. In the Heading field, enter a value.
  5. In the Subheading field, enter a value.
  6. In the Country/region extension field, enter a value.
  7. In the Statistical suffix field, enter a value.
  8. Save the record, and verify that the HSN code field is updated.
  9. In the Description field, enter a value.
  10. Select Close.

Define SACs

  1. Go to Tax > Setup > Sales tax > India > Service accounting codes.
  2. Create a record.
  3. In the SAC field, enter a value.
  4. In the Description field, enter a value.
  5. Save the record, and then select Close.

Assign HSN codes and SACs to products

  1. Go to Product information management > Products > Released products.
  2. Select a product, and then select Edit.
  3. On the General FastTab, if the product type is Item, select a value in the HSN codes field. If the product type is Service, select a value in the Service accounting codes field.
  4. Save the record, and then select Close.

The following setup is required for the calculation of GST:

  • An HSN code should be defined for the Item product type, or an SAC should be defined for the Service product type.
  • The item sales tax group should be removed.

Assign HSN codes and SACs to products.

Assign SACs to miscellaneous charges

  1. Go to Accounts payable > Charges setup > Charges code.

  2. Select a charges code.

  3. On the Tax information FastTab, in the Service accounting codes or HSN codes field, enter a value.

  4. In the Service category or ITC Category field, enter a value.

  5. Set the Exempt option to Yes to exempt these charges from the calculation of GST.

  6. Save the record.

    When this charge code is selected for a transaction, the defined tax information is automatically entered, and GST is calculated accordingly.

  7. Go to Accounts receivable > Charges setup > Charges code.

  8. Select a charges code.

  9. On the Tax information FastTab, in the Service accounting codes or HSN codes field, enter a value.

  10. Set the Exempt option to Yes to exempt these charges from the calculation of GST.

  11. Save the record.

    When this charge code is selected for a transaction, the defined tax information is automatically entered, and GST is calculated accordingly.