GST (Goods and Service Tax) in the Indian version of Microsoft Dynamics NAV 2016 CU 62

Government is planning to introduce a new Tax called ‘Goods & Service Tax (GST)’ from 01-Jul-2017. Goods and Service Tax (GST) is an indirect tax levied on supply of goods or services or both. See GST White Paper December 2020 for details.

Overview

Proposed GST

  • Goods and Service Tax (GST) is an indirect tax levied on supply of goods or services or both.

  • It is a destination/consumption based tax levy which is payable in the state in which the goods and services are consumed.

  • It is levied and collected on value addition at each stage of production or distribution process (all points in supply chain).

  • The supplier can avail credit on input tax credit paid on procurement of goods or services.

Components of GST

Component

Levied by

Applicable on

Central GST (CGST)

Centre

Intra-state supply of goods or services in India.

State GST (SGST)

States

Intra-state supply of goods or services in India

Integrated GST (IGST)

Centre

Inter-state supply of goods or services, Exports and Imports.

Goods outside Gamut of GST

  • Petroleum products and Alcohol for human consumption are proposed to be kept out of purview of GST. Petroleum products will be brought into GST network at a later stage.

  • Central Excise duty will continue on petroleum products. States will continue to impose sales tax on sale within the state on petroleum products and alcohol for human consumption.

  • Tobacco products will be subject to Excise duty along with GST.

Features & fixes included in this Release

The following features & fixes are included in this release

CRs:

  • TCS to be calculated on Bill-to Customer instead of Sell-to Customer: In existing design, system is considering Sell-to Customer in sales document lines for fetching TCS Nature of Collection even if Bill-to Customer is different from Sell-to Customer, by posting this transaction system will create Customer ledger entries against Bill-to Customer instead of Sell-to Customer. In addition to it, system will fetch Bill-to Customer application entries even if Sell-to Customer TCS Nature of Collection are updated in sales document lines. By this new change, system will Consider Bill-to Customer for all validation of TCS calculation and posting.

  • TCS Calculation on Receipt of Payment: As per new TCS section, user need to collect TCS on receipt of payment of sale of goods, where the receipt of payment is over and above the threshold amount within same financial year. To accommodate the same, a new design is provided in Microsoft Dynamics NAV, user can calculate and collect TCS on receipt of payment of sales of goods where receipt of payment if over and above the specified threshold amount limit in TCS setup. In addition to it, there is a new provision provided in receipt of payment for user to select open sales lines for updating amount in receipt lines for TCS calculations.

  • GST for SEZ customer should be collected from customer in certain scenarios, rather than being debited from IGST account

HFs:

  • Inconsistency while posting a cash payment voucher with TDS,

  • TDS not correctly calculated, when multiple advance payments are applied against single invoice

  • Wrong TDS values in Statistics and TDS ledger entries

Reference Information

Reference No.

375107, 376239, 376007, 377614, 375585, 375199, 374005

Product Area

Financial Management

Discovered in

Microsoft Dynamics NAV 2016 IN

Title

Inconsistency while posting a cash payment voucher with TDS; Error message when Applying Payment with TCS to Sales Invoice; TDS not correctly calculated, when multiple advance payments are applied against single invoice; Wrong TDS values in Statistics and TDS ledger entries; TCS to be calculated on Bill to customer not on Sell to Customer; GST for SEZ customer should be collected from customer in certain scenarios, rather than being debited from IGST account; TCS Threshold should be on Sales realization

Released on

26 Nov 2020

Important Notice to Customers

We recommend that you contact your Microsoft Dynamics Partner before installing service packs or hotfixes. It is important to verify that your environment is compatible with the service pack(s), hotfix(es), or download(s) being installed. A service pack, hotfix, or download may cause interoperability issues with customizations, and third-party products that work with your Microsoft Dynamics solutions.

Important Notice to Partners

As per the SPA, it is non-compliant for partners to redistribute tax and regulatory updates to ERP customers not enrolled in the Business Ready Enhancement Plan. Partners can verify their customer’s status in VOICE. If they're not enrolled, Partners will need to get them current before they can distribute.

Installation

 Before this update can be installed, the following prerequisites are required:

  • Microsoft Dynamics ® NAV 2016 IN CU 61

Note:

If a customer has customizations in any objects involved in this regulatory feature, they might require your special attention.

Licensing

The following objects have been added through this update. Licensing refresh is required.

Type

No.

Name

Permissions

Table

16482

Sales Lines for TCS on Payment

RIMDX

Page

16425

Sales Lines for TCS on Payment

RIMDX

Objects

The following object have been added / modified through this release:

Type

No.

Name

Added/Modified

Table

18

Customer

Modified

Table

25

Vendor Ledger Entry

Modified

Table

36

Sales Header

Modified

Table

37

Sales Line

Modified

Table

81

Gen. Journal Line

Modified

Table

110

Sales Shipment Header

Modified

Table

112

Sales Invoice Header

Modified

Table

114

Sales Cr.Memo Header

Modified

Table

5107

Sales Header Archive

Modified

Table

16419

Detailed GST Ledger Entry

Modified

Table

16470

Reference Invoice No.

Modified

Table

16482

Sales Lines for TCS on Payment

Added

Table

16507

TCS Nature Of Collection

Modified

Table

16514

TCS Entry

Modified

Codeunit

12

Gen. Jnl.-Post Line

Modified

Codeunit

13

Gen. Jnl.-Post Batch

Modified

Codeunit

80

Sales-Post

Modified

Codeunit

90

Purch.-Post

Modified

Codeunit

16401

GST Management

Modified

Page

21

Customer Card

Modified

Page

39

General Journal

Modified

Page

41

Sales Quote

Modified

Page

42

Sales Order

Modified

Page

43

Sales Invoice

Modified

Page

44

Sales Credit Memo

Modified

Page

130

Posted Sales Shipment

Modified

Page

132

Posted Sales Invoice

Modified

Page

134

Posted Sales Credit Memo

Modified

Page

232

Apply Customer Entries

Modified

Page

253

Sales Journal

Modified

Page

255

Cash Receipt Journal

Modified

Page

507

Blanket Sales Order

Modified

Page

6630

Sales Return Order

Modified

Page

16414

Detailed GST Ledger Entry Prev

Modified

Page

16419

Detailed GST Ledger Entry

Modified

Page

16425

Sales Lines for TCS On Payment

Added

Page

16517

TCS Nature of Collections

Modified

Page

16569

Bank Receipt Voucher

Modified

Page

16579

Cash Receipt Voucher

Modified

Report

16518

Form 27EQ

Modified

Codeunit

144057

TDS - Payment

Modified

Codeunit

144068

TDS - TCS Transactions

Modified

Setup

New Setup fields added in existing Tables

Table

Field

Description

Company Information

GST Registration No.

Type: Code 15

General Ledger Setup

 

GST Rounding Precision

Type: Decimal

GST Rounding Type

Type: Option

Options are Nearest, Up, Down

Purch. A/C for Job Work Liab.

Type: Code 20

IGST Payable A/c in Import

Type: Code 20

GST Recon. Tolerance

Type: Decimal

GST Credit Adj. Jnl Nos.

Type: Code 10

GST Distribution Nos.

Type: Code 10

GST Settlement Nos.

Type: Code 10

GST Inv. Rounding Precision

Type: Decimal

GST Inv. Rounding Type

Type: Option

GST Inv. Rounding Account

Type: Code 20

State

State Code for GST Reg. No.

Type: Code 2

Structure Details

Type

Type: Option

Inc. GST in TDS Base

Type: Boolean

GST Dependence Type

Type: Option

Options are –  , Bill-to Address, Ship-to Address, Location Address

Sales & Receivable Setup

Posted Inv. Nos. (Exempt)

Type: Code 10

Posted Cr. Memo Nos. (Exempt)

Type: Code 10

Posted Inv. No. (Export)

Type: Code 10

Posted Cr. Memo No. (Export)

Type: Code 10

Posted Inv. No. (Supp)

Type: Code 10

Posted Cr. Memo No. (Supp)

Type: Code 10

Posted Inv. No. (Debit Note)

Type: Code 10

Posted Inv. No. (Non-GST)

Type: Code 10

Posted Cr. Memo No. (Non-GST)

Type: Code 10

Purchase & Payable Setup

Posted Purch. Inv. For Unreg. Vendor

Type: Code 10

Posted Purch. Cr. Memo (Unreg.)

Type: Code 10

Posted Purch. Inv. Nos. (Unreg. Supplementary)

Type: Code 10

Posted Purch. Inv. Nos. (Unreg. Debit Note)

Type: Code 10

RCM Exemp. for Un-Reg. Ven. Start Date

Date

RCM Exemp. for Un-Reg. Ven. End Date

Date

Cr. & Libty Adj. Journal No.

Type: Code 10

Purch. Inv. Nos. (Reg)

Type: Code 10

Purch. Inv. Nos. (Reg Supp)

Type: Code 10

Pur. Inv. Nos.(Reg Deb.Note)

Type: Code 10

Purch. Cr. Memo Nos. (Reg)

Type: Code 10

Location Setup

GST Liability Invoice

Type: Code 10

GST Input Service Distributor

Type: Boolean

Purch. Inv. Nos. (Unreg)

Type: Code 10

Purch. Cr. Memo Nos. (Unreg)

Type: Code 10

Purch. Inv. Nos. (Unreg Supp)

Type: Code 10

Pur. Inv. Nos.(Unreg Deb.Note)

Type: Code 10

GST Transfer Shipment No.

Type: Code 10

Posted Dist. Invoice Nos.

Type: Code 10

Posted Dist. Cr. Memo Nos.

Type: Code 10

Purch. Inv. Nos. (Reg)

Type: Code 10

Purch. Inv. Nos. (Reg Supp)

Type: Code 10

Pur. Inv. Nos.(Reg Deb.Note)

Type: Code 10

Purch. Cr. Memo Nos. (Reg)

Type: Code 10

Source Code Setup

GST Liability - Job Work

Type: Code 10

GST Receipt - Job Work

Type: Code 10

Service Transfer Shipment

Type: Code 10

Service Transfer Receipt

Type: Code 10

GST Credit Adjustment Journal

Type: Code 10

GST Settlement

Type: Code 10

GST Distribution

Type: Code 10

GST Adjustment Journal        

Type: Code 10

Unit of Measure

GST Reporting UQC

Type: Code 10

Return Reason

GST Reporting Reason Code

Type: Option

<Blank>, Interstate, Intrastate

TDS Group

TDS Receivable Account

Type: Code 20

NOD/NOC Lines

TDS for Customer

Type: Boolean

GST Registration No. table

 Field

Description

State Code

Type: Code 10

Code

Type: Code 15

Description

Type: Text 30

GST Input Service Distributor

Type: Boolean

GST Accounting Period table

Field

Description

Starting Date

Type: Date

Ending Date

Type: Date

Year Closed

Type: Boolean

GST Accounting Sub-Period table

Field

Description

Accounting Period Starting Date

Type: Date

Starting Date

Type: Date

Name

Type: Text 10

New Financial Year

Type: Boolean

Due Date for Outward Supplies Returns (GSTR-1)

Type: Date

Due Date for Inward Supplies Returns (GSTR-2)

Type: Date

Due Date for Monthly returns (GSTR-3)

Type: Date

Due Date for Input Service Distributor

Type: Date

Due Date for TDS

Type: Date

GST Payment Due Date

Type: Date

Date Locked

Type: Boolean

Closed

Type: Boolean

GST Component table

Field

Description

Code

Type: Code 10

Description

Type: Text 50

GST Jurisdiction

Type: Option

 

Options are Intrastate, Interstate

Include Base

Type: Boolean

Formula

Type: Code 250

Dropdown to Component table

If any component is selected then it shall calculate on the value of the component selected.

Calculation Order

Type: Integer

Report View

Type: Option… <Blank>,CGST,SGST / UTGST,IGST,CESS

Non-Availment

Type: Boolean

GST Group table

Field

Description

Code

Type: Code 10

Description

Type: Text 250

GST Group Type

Type: Option

Options are Goods, Service

GST Place Of Supply

Type: Option

Options are  (Blank) ,Bill-to Address, Ship-to Address, Location Address

Reverse Charge

Type: Boolean

GST Posting Setup table

Field

Description

State Code

Type: Code 10

Dropdown from State table

GST Component Code

Type: Code 10

Dropdown from GST Component table

Receivables Account

Type: Code 20

Dropdown to G/L Account table

Payable

Type: Code 20

Dropdown to G/L Account table

Receivables Account (Interim)

Type: Code 20

Dropdown to G/L Account table

Payables Account (Interim)

Type: Code 20

Dropdown to G/L Account table

Expenses Account

Type: Code 20

Dropdown to G/L Account table

Refund Account

Type: Code 20

Dropdown to G/L Account table

Receivable Distribution (Interim) Account

Type: Code 20

Dropdown to G/L Account table

Receivable Distribution Account

Type: Code 20

Dropdown to G/L Account table

GST Credit Mismatch Account

Type: Code 20

Dropdown to G/L Account table

GST TDS Receivable Account

Type: Code 20

GST TCS Receivable Account

Type: Code 20

GST TCS Payable Account

Type: Code 20

GST Claim Setoff table

Field

Description

GST Component

Type: Code 10

Lookup to GST Component

Priority

Type: Integer

User will manually update the number

Set Off Component

Type: Code 10

Lookup to GST Component

GST Configuration table

Field

Description

Type

Type: Options

Option are Vendor, Customer

Dispatch / Receiving State Code

Type: Code 10

Dropdown from State table

Customer / Vendor State Code

Type: Code 10

Dropdown from State table

GST Jurisdiction

Type: Option

Options are  Intrastate, Interstate This field shall be auto updated, Intrastate shall be updated if Dispatch / Receiving State Code field value and Customer / Vendor State Code field is same else Interstate. If any one state code is blank then Interstate shall be updated.

GST % Sate Code

Type: Code 10

Dropdown from State table

GST Details table

Field

Description

GST % State Code

Type: Code 10

Dropdown from State table

GST Group Code

Type: Code 20

Dropdown from GST Group table

GST Component Code

Type: Code 10

Dropdown from GST Component table

Effective Date

Type: Date

User needs to mention the Effective date

GST Component %

Type: Decimal

User needs to mention the GST percentage

Include Base

Type: Boolean

Formula

Type: Code 250

Dropdown to GST Component table

GST Jurisdiction

Type: Option

Options are: Intrastate, Interstate

Calculation Order

Type: Integer

GST Recon. mapping

Field

Description

GST Component Code

Type: Code 10

Dropdown from GST Component

GST Reconciliation field No.

Type: Integer

GST Reconciliation field Name

Type: Text 30

ISD ledger field No.

Type: Integer

ISD ledger field Name

Type: Text 3

GST Component Distribution

Field

Description

GST Component Code

Code 10

GST Components shall be selected from drop down

Distribution Component Code

Code 10

GST Components shall be selected from drop down

Intrastate Distribution

Boolean

Intrastate Distribution

Boolean

GST Setup

Field

Description

GST State Code

Type: Code 10

Dropdown from State table

GST Group Code

Type: Code 20

Dropdown from GST Group table

GST Component Code

Type: Code 10

Dropdown from GST Component table

Effective Date

Type: Date

User needs to mention the Effective date

GST Component %

Type: Decimal

User needs to mention the GST percentage

Include Base

Type: Boolean

Formula

Type: Code 250

Dropdown to GST Component table

If any component is selected then it shall calculate on the value of the component selected.

Calculation Order

Type: Integer

Threshold Amount

 

Type: Integer

Before Threshold %

 

Type: Decimal

User needs to mention the GST percentage before crossing Threshold Limit

Component Calc. Type

 

Type: Option

Options are: Blank, General, Threshold, Cess %, Cess % + Amount/Unit Factor, Cess % Or Amount/Unit Factor Whichever Higher and Amount/Unit Factor

Cess Amount Per Unit Factor

Type: Decimal

Cess UOM

Type: Code 250

Dropdown to Units of Measure table

Cess  Factor Quantity

Type: Decimal

Non-Availment

Type: Boolean

GST Component Distribution

Field

Description

GST Component Code

Code 10

GST Components shall be selected from drop down

Distribution Component Code

Code 10

GST Components shall be selected from drop down

Intrastate Distribution

Boolean

Bank Charge Deemed Value Setup

Field

Description

Bank Charge Code

Type: Dropdown

To provide dropdown to Bank Charges Master

Mandatory Field

Lower limit

Type: Decimal

Upper limit

Type: Decimal

Mandatory Field

Formula

Type: Option

Deemed%/Fixed/Comparative/Fixed+Deemed %/Fixed+Comparative

Min. Deemed Value

Type: Decimal

Max Deemed Value

Type: Decimal

Deemed %

Type: Decimal

Fixed Amount

Type: Decimal

GST Journal Template

Field

Description

Name

Type: Code 10

Description

Type: Text 80

Page ID

Type: Integer

Type

Type: Option  (‘ ‘ , ‘GST Adjustment Journal’)

Source Code

Type: Code 10

Reason Code

Type: Code 10

Page Name

Type: Text 80

Bal. Account Type  

Type: Option (‘G/L Account’, ’Customer’, ’Vendor’, ’Bank Account’)

Bal. Account No.

Type: Code 20

No. Series

Type: Code 10

Posting No. Series 

Type: Code 10

GST Journal Batch

Field

Description

Journal Template Name        

Type: Code 10

Name

Type: Code 10

Description

Type: Text  50

Reason Code

Type: Code 10

Bal. Account Type

Type: Option  (‘G/L Account’, ’Customer’, ’Vendor’, ’Bank Account’)

Bal. Account No.

Type: Code 20

No. Series

Type: Code 10

Posting No. Series

Type: Code 10

Template Type

Type: Option  (‘ ‘ , ‘GST Adjustment Journal’)

Location Code

Type: Code 10

Source Code

Type: Code 10

GST TDS/TCS Setup

 Field

Description

GST Component Code

Type: Code 10

Effective Date

Type: Date

GST TDS/TCS %

Type: Decimal

GST Jurisdiction

Option

Options are: Intrastate, Interstate

Type

Option

Options are: ,TDS,TCS

Support Information

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