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Creating GST compliant invoices for Indian Businesses

B
Bindu Rekha Babu
9 Mar, 2021 - Updated 6 months ago

Introduction

Do you sell products or provide services or offer both to your customers? If yes, then invoicing is part of your Organization’s sales process and you must also be aware of the new GST system.

GST, as we all know, is the replacement of all indirect taxes such as service tax, central excise and customs duty, and value added tax (VAT), levied on goods and services by the Indian Central and state governments.

As the tax rates depend on the location of supplier and place of supply to determine intra/inter state transaction, the supply chain productivity will increase gradually with tax credits operated crossly. With the implementation of the GST system for businesses, the advantage is the reduction of tax evasion rates and lower operating costs.

To know more about What is GST?, click here

GST in Vtiger

With GST onboard, those businesses dealing with INR billing have to move to GST compliant invoicing to adhere to GST bill. In this section, you will learn about setting up your Vtiger account with GST features.

Configuring your Vtiger account

Vtiger CRM GST configuration is a few minutes setup process. To get started with the GST configuration follow these steps :

  1. Hover on Menu and click on Settings
  2. Click on Company Details and click Edit
  3. Enter the State (Place of Supply) and Registered GSTIN

Note!
1. If you haven’t registered your business for GST, please visit www.gstn.org website
2. A new text field is included in the Organization module to enter the 15 digit registered GSTIN of the respective Organization.

Setting up Global Taxes

Once you’re done with adding the GST details, the next step is to set up default tax preferences for Intrastate and Interstate transactions. Vtiger already have tax rates pre-populated under the Taxes section. You can change the Tax values, as per your business analysis. To do so, follow below steps:

  1. Click on Tax Management in Settings page
  2. Add 2 tax regions - In-state and Out-state

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  3. Add these 3 global taxes as variables taxes

Tax name In-State Out-of-State
CGST 6% 0%
SGST 6% 0%
IGST 0% 12 % (6% + 6%)

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  1. To edit the Tax value, hover on a particular tax and click on Edit icon.
  2. Change the tax values and click Save.

Note! For customers who have signed up for Vtiger CRM after July 10th, 2017, the above taxes and regions are already added.

Consider a Surat based fabric manufacturing unit selling their fabric products to a wholesaler in same state. Since the products are sold to a wholesaler within the state, the invoice should include only SGST and CGST along with the Tax Region preselected as In-State. If the products are sold to a retailer located in different state, say Bhopal then the invoice should only in IGST along with the Tax Region preselected as Out-of-State.

When you select Tax Region as In-state in the Quote or Invoice, it will assign 6% rate for CGST and SGST and 0% for IGST. If you select Tax Region as Out-of-state in the Quote or Invoice, it will assign 0% rate for CGST and SGST, and 12% rate for IGST.

Global tax rate vs Product/Service level tax rate

Do you apply different tax values for different products?

If the tax rate is the same for all your products and services, then you don’t have to configure the tax rates at the product / service. When creating Quote and Invoice, please choose Group mode to use the global tax rates.

If the tax rate is different for different items in the invoice, then at the time of creating quote/invoice, please select Individual mode. You have to pre-configure the rates for the taxes by editing each product / service record in your system. When you select Individual mode, Vtiger picks the tax rates from the Product / Service record.

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Note! To apply different tax values to different products, please export all the products to CSV file. Update the tax values at product level and Import them back to Vtiger.

Templates for GST Invoices and Quotes

You can include individual tax amounts when sending Invoices to customers, by using merge tags for taxes in the print templates.

Vtiger comes with 2 default GST ready templates:

  • Sample GST Invoice Template (Individual) - Use this template if invoice tax mode is set to “Individual tax mode”
  • Sample GST Invoice Template (Group) - use this template if invoice tax mode is set to “Group tax mode”

Note! Similar templates are available for Quotes module.

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