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    Indian Accounting: Manage Indian GST in Odoo

    Indian Accounting: Manage Indian GST in Odoo

    Tax management refers to the management of finances, for the purpose of paying tax. Taxes are financial charges imposed by the government, to fund the public sector and meet other expenses. Countries and economic systems have their own independent tax systems.

    Giving light to Indian Accounting, GST is followed for indirect tax in India. The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services Indian Government launches GST(Goods and Service Tax) on 1st July 2017.

    What are Goods and Services?

    In simple words, goods are the Things which we can see, touch and Services are what we can’t touch. A product is a tangible item that is put on the market for acquisition, attention, or consumption, while a service is an intangible item, which arises from the output of one or more individuals. One thing to keep in mind is that products and services are closely aligned.

    Two type of taxes

    Direct Tax

    Direct Tax
Income Tax
Corporation Tax
Property Tax
Inheritance Tax
Gift Tax
Wealth Tax

    Indirect Tax

    Indirect Tax
Custom Duty
Excise Duty
Service Tax
Sales Tax
VAT
Entertainment Tax

    Who is eligible to register under GST? 

    All the businesses supplying goods whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.

    Types of GST

    TaxesFull form of the Taxes
    CGSTCentral Goods and Services Tax
    SGSTState Goods and Services Tax
    UTGSTUnion Territory Goods and Services Tax
    IGSTIntegrated Goods and Services Tax. It is also known as Destination GST

    How GST is Applied on Goods and Services?

    Same State

    CGST + SGST

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    If GST is applied 18% on Goods/Services then for same state it will be calculated like

    9%(CGST) + 9%(SGST)

    Union Territory

    CGST + UTGST

    If GST is applied 18% on Goods/Services then for union territory it will be calculated like

    9%(CGST) + 9%(UTGST)

    Inter State

    If GST is applied 18% on Goods/Services then IGST will be whole 18%

    Input/Output GST

    GSTR

    GSTR is goods and services tax return; the type of GSTR are GSTR1, GSTR2, GSTR3, GSTR3B, and GSTR9.

    What is GSTIN

    It is Goods & Service Identification Number

    Format of GSTIN

    GSTIN contains 15 Digits; here is a format break-down of the GSTIN:

    • The first two digits represent the state code as per Indian Census 2011. Every state has a unique code.  For instance,
      • State code of Karnataka is 29
      • State code of Delhi is 07
    • The next ten digits will be the PAN number of the taxpayer
    • The thirteenth digit will be assigned based on the number of registration within a state.
    • The fourteenth digit will be Z by default
    • The last digit will be for check code. It may be an alphabet or a number.

    Comparison Between Old and GST System

    Old SystemPayeeGST System
    100(Actual Price) + 50 (Profit) = 150 + 15 (10% Tax)
    Payable Amount = 165
    Producer100(Actual Price) + 50 (Profit) = 150 + 5 (10% Tax)
    Payable Amount = 155
    165 + 25 (Profit) = 190 + 19(10% Tax)
    Payable Amount = 209
    Wholesaler155(Actual Price) + 25 (Profit) = 180 + 2.5 (10% Tax)
    Payable Amount = 182.5
    209 + 25 (Profit) = 234 + 23.4(10% Tax)
    Payable Amount = 257.4
    Retailer182.5(Actual Price) + 25 (Profit) = 207.5 + 2.5 (10% Tax)
    Payable Amount = 210
    257.4Consumer210

    Are you running your business in Odoo? Are you worried, how to file GSTR without monotonous efforst?

    Odoo GST – Returns and Invoices

    Odoo GST - Returns and Invoices

    Odoo GST – Returns and Invoices allows you to file the monthly return that summarizes all outward supplies by registered taxpayers. The module helps to generate CSV as well JSON of the invoice like B2B, B2BUR, B2CS, B2CL, Export, Import.

    Please refer the user guide of Odoo GST – Returns and Invoices to know more about the module.

    Odoo GSTR3B – Returns And Invoices

    Odoo GSTR3B - Returns And Invoices

    Odoo GSTR3B – Returns And Invoices facilitates you to get the Simplified GSTR Summary in JSON format which can be directly uploaded to file GSTR3B. You can manage purchases as well expenses of your business with the help of the module. Moreover, you can also manage the supplies made by your business that are outward supplies.

    Please refer the user guide of Odoo GSTR3B – Returns and Invoices to know more about the module.

    Odoo GST Ewaybill

    Odoo GST Ewaybill

    Odoo GST E-Way Bill facilitates the transporters to prepare the JSON report of the details which makes GST E-Way Bill filing easier. Moreover, the module also facilitates you to consolidate the E-Way Bill and also allows you to update the vehicle number anytime.

    Please refer the user guide of Odoo GST Ewaybill to know more about the module.

    We Would Love to Hear From You!

    Hope you find the blog regarding GST in Odoo informative! If you have any feedback then please feel free to share in the comments below.

    Also, check our store page to go through our Odoo modules.

    If you have any doubt or query then create a ticket or drop us a mail at [email protected]

    Thanks for paying attention!!

    🙂 😊

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