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
Indirect 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
| Taxes | Full form of the Taxes |
| CGST | Central Goods and Services Tax |
| SGST | State Goods and Services Tax |
| UTGST | Union Territory Goods and Services Tax |
| IGST | Integrated Goods and Services Tax. It is also known as Destination GST |
How GST is Applied on Goods and Services?
Same State
CGST + SGST
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 System | Payee | GST System |
| 100(Actual Price) + 50 (Profit) = 150 + 15 (10% Tax) Payable Amount = 165 | Producer | 100(Actual Price) + 50 (Profit) = 150 + 5 (10% Tax) Payable Amount = 155 |
| 165 + 25 (Profit) = 190 + 19(10% Tax) Payable Amount = 209 | Wholesaler | 155(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 | Retailer | 182.5(Actual Price) + 25 (Profit) = 207.5 + 2.5 (10% Tax) Payable Amount = 210 |
| 257.4 | Consumer | 210 |
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 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 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 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.
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