Complying or adherence to the tax system of the country in which you operate your business is very essential. In eCommerce, it becomes even more necessary as all transactions are recorded & revenue services can check them any time. Although, Prestashop initially has all tax rules if you download the localization data of that particular country. Even for India, it has the previous taxes that were in force until June’17. However, the new tax system i.e., GST is enforceable around the country from 1st of July, 2017. So, now any business operating in the Indian subcontinent needs to adhere to new tax norms. Hence, we made this Prestashop GST – Returns and Invoices module to make the application of new taxes on existing products easier.
The new tax system aims to evade the multiple cascading effects of taxes. As businesses had to pay taxes at multiple levels earlier. That means they have to pay the tax to central & state governments separately. Now, with this module, store owners can simply apply the new GST on the products as per the tax slabs.
Check the overview of the plugin in the video mentioned-below –
It is important to have an overview of this taxation system!
GST: Goods and Services Tax (GST) is an indirect tax that was introduced in India on 1 July 2017. It is applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. Under GST, goods and services are taxed at the following rates, 0%, 0.25%, 3%, 5%, 12% ,18% and 28%.
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What is GST?
GST is the newly implemented tax structure of India.
Goods and Services Tax aims to replace all the indirect taxes levied on goods and services by the Centre and States currently.
Hailed as one of the biggest tax reforms of the country, the Goods and Services Tax (GST) subsumes many indirect taxes which were imposed by Centre and State such as excise, VAT, and service tax. It is levied on both goods and services sold in the country.
Components of GST
GST is divided into three components:
- the Central Goods and Services Tax (CGST),
- the State Goods and Services Tax (SGST),
- the Inter State Goods and Services Tax (IGST).
What is CGST?
CGST is a tax levied on Intra State supplies of both goods and services by the Central Government.
The CSGT will subsume the Central indirect taxes like the service tax, excise duty, additional customs duty, additional special excise duty.
What is SGST?
SGST is a tax levied on Intra State supplies of both goods and services by the State Government.
SGST will subsume the State indirect taxes like VAT, entertainment tax, octroi and others.
What is IGST?
IGST is a tax levied on all Inter-State supplies of goods and/or services.
IGST will be applicable on any supply of goods and/or services in both cases of import into India and export from India.
Advantages of GST
GST is a transparent tax and also reduce the number of indirect taxes.
Helps to remove multiple cascading effects of taxes and aiming at a goal of letting industry and the economy benefit as a whole.
GST Implications on E-commerce Industry
eCommerce businesses are expected to benefit from GST because until recently, they suffered from the complex and multi-tier supply chain system involving a lot of paperwork, reporting, and compliances. Since GST is going to remove complexities arising out of the multi-tier supply system, the resultant lesser paperwork and lesser compliances will help e-commerce companies improve their efficiencies.
Features of the Prestashop GST – Returns and Invoices module
- Both admin and customers can add GSTIN number.
- Store owners are now able to use the GST pattern of tax structure on their website.
- Choose to add & map the GST tax rules after configuring the module.
- Add HSN code and UQC on products from the modules section.
- Create invoice CSV’s compliant to the respective order types.
- Download invoice CSV from the GST system section.
- Invoices adhere to their respective order types format.
- Prestashop invoices will generate as per GST standards.
- The module creates the invoices as per these standard order types – B2B, B2CS, B2CL, and Export.
- Upload the downloaded invoice readily on the GST server.
- The Customers can add/edit/delete GSTIN number.
- Make sure to import the localization of India on your Prestashop before using this module.
- GST invoices will generate only when you’ll apply GST taxes on the products.
- GST invoices will generate only on updating the order status to “delivered’.
- For a B2B type order invoice, it is mandatory to enter VAT (GSTIN) Number in customer address section.
How to install the Prestashop GST – Returns and Invoices module
- Firstly, go to the module manager in back office and click on ‘upload a module’.
- After that, drag and drop the module file or select the file from the system.
- In this way, the module installation will be successful.
How to configure the Prestashop GST – Returns and Invoices module
On installing the module successfully, you need to configure the module first.
On the configuration page, the store owner(i.e., you) needs to add the registered address of the business. Then, there is another option too. That options name is “Create & Map GST tax rules”.
I’ll just explain what it does.
On enabling the option, all the GST taxes & their relevant tax rules will add to PrestaShop on configuring the module. And, in case if you disable the option, then no GST tax will add to your Prestashop. Now, you will need to add the taxes manually.
Also, note that this option becomes inactive/disabled upon configuring the module for the first time.
Let’s see how GST tax & its tax rules will display in the taxes section. Please note that the tax & tax rules display only when the option to create and map tax rules is active.
You will need to assign these taxes to the products to provide the GST invoice to customers.
At the admin’s end
After installing the module, you will find a new option under the “modules” section on the “edit product page”. Under the modules section, you will be able to find an option to add HSN code & UQC for the product.
HSN Code is an international standard of names and numbers to classify traded products. Whereas, UQC is a measuring quantity under the GST system for a standard use by all taxpayers.
Additionally, a new tab “GST System” also adds under “Orders” section to manage GST invoices.
Under the GST system tab, you will see all the products having GST tax. You can generate GST invoice for the orders having products with GST tax.
Now, there is another section of “Map Tax Rules” too. Under this section, you can find the list of all the mapped tax rules group. You can also choose to map other tax rules group as well.
Invoice Types in GST
Invoices are of various types depending on various parameters like delivery address, order amount, etc. Although, this module creates invoices as per these standard order types – B2B, B2CS, B2CL, and Export.
- B2B: It means Business to Business Invoice. The registered parties may be within state or outside state and should have VAT number.
- B2CS: It means Business to Small Customer Invoice. Invoice generated for the client comes under the category of B2CS, if
- The amount is less than 2,50,000.
- The client is from the same state.
- The amount is less than 2,50,000 and client is from the different state.
- The amount is greater than 250000 and client is from the different state
- B2CL: It means Business to Large Customer Invoice. If the invoice generated for the client who is from the same state and amount is more than 2,50,000. Then the invoice comes under the category of B2CL.
- Export: It means sales outside the country.
Workflow of Prestashop GST – Returns and Invoices module
At the front end, a customer can also add his/her GSTIN number under the “Addresses” tab of the “My Account” section.
When a customer clicks on ‘Add GSTIN’ button, a pop appears on the screen. Now, a customer can enter his GSTIN number here and click on the save button.
Once a customer saves the GSTIN number, he can also view it under ‘My Address’.
For a new address, a customer can add the GSTIN under “My Addresses” tab in the manner shown below.
A customer can also add or update the GSTIN while placing an order from the “Address” tab.
Generate Invoice CSV
Now, when a customer places an order and admin updates the order status to “Delivered“. The orders list to “GENERATE INVOICE CSV” section. Please refer to the screenshot.
Note: Only the products with GST tax are eligible for GST invoice generation.
There are various types of Invoices when one follows the GST structure of taxation. Also, there are various invoice (order) types depending on various parameters like customers delivery address, order amount etc.
All orders having products with GST taxes will be visible under “Generate Invoice CSV” section. Every order will have their respective order types based on various parameters like customer address, order amount etc.
An admin can also create Invoice CSV’s. On creating invoice CSV’s successfully, it will be visible in “Download CSV” section.
Once admin generates the invoice CSV as per the order types, it will be visible in “Download Invoice CSV” section. From here, admin can also download the Invoice CSV.
Complete GST tax details is available in the Invoice. Below is the screenshot of sample GST invoice.
So, this was all about the Prestashop GST invoices module. I hope this document will help you in checking the functionality of the module in a better way. Also, do let us know about your views in the comments.
In case, if you’ll also want a module that can help you to create a B2B invoice, then do check out the blog.
Current Product Version - 5.1.2
Supported Framework Version - 1.7.x.x