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GST Application in India

deepaksakhrani shared this idea 11 months ago
Already Possible

Hello,

WHMCS users in India have a new challenge of setting Tax Rules with upcoming GST implementation from July 1, 2017.

GST in India is complicated as there are 3 types of GST - SGST (State GST), CGST (Central GST) and IGST (Interstate GST)

We did some research and found that this challenge can be simplified with a minor tweak in WHMCS tax rule settings.

SGST and CGST is applied for intrastate transactions at equal rate (9%+9%) and IGST is applied for interstate transactions at flat 18%

Since tax calculation is based on point of service consumption, it will have too many levels of taxes for various states.

What we understand so far is: Currently, WHMCS allows only selection of 1 state at a time. If we have to add tax for 36 states separately, we will have to add 36 IGST Tax Rules for each state.

If Tax Rules can be changed to allow multiple selections of states, then GST application is simplified as below:

Apply SGST at level 1 and CGST at level 2 for our native state. i.e. I am based in Mumbai, Maharastra, so I will apply SGST 9% at Level 1 and CGST at 9% at Level 2.

For all other states, I will add only Level 1 Tax as IGST at 18%. This is possible if we have multi-select states option in one go. Or we create this rule for other 35 states individually.

We need support from WHMCS team to allow multi-select states to apply GST.

I hope this will help address the issue for WHMCS users in India.

Thank you,

Deepak Sakhrani

Hiya Digital Private Limited

Best Answer
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Hello,

This is already possible. The tax rules are applied and checked in order. To achieve what you wish, you would need two level one rules.

Rule 1: Create your India -> Mumbai rule

Rule 2: Create a rule for India -> Any State

Then, you would need a single level 2 rule for Mumbai.

As the rules are checked in order, the Mumbai rule would be found first when searching for tax rules. If the state isn't Mumbai then the second rule would be checked.

Hope this helps.

Andrew

Comments (14)

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1

Hello,

This is already possible. The tax rules are applied and checked in order. To achieve what you wish, you would need two level one rules.

Rule 1: Create your India -> Mumbai rule

Rule 2: Create a rule for India -> Any State

Then, you would need a single level 2 rule for Mumbai.

As the rules are checked in order, the Mumbai rule would be found first when searching for tax rules. If the state isn't Mumbai then the second rule would be checked.

Hope this helps.

Andrew

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Hello WHMCS Andrew,

Yes it is working for New Invoices/New Orders Properly.

if we check Existing Invoices, that also changed with new tax rules.(when GST is not applicable)

any solution so GST wont apply to Already Paid/Generated Invoices?

Thanks

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Hi,

This could be done by way of a template customisation. Check our this forunm post for some ideas and suggestions: https://forum.whmcs.com/showthread.php?129102-Option-to-configure-GST-for-Indian-customers&p=523113#post523113

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@WHMCSJohn

But how customer will enter their own GST number?

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Hi there,

This is handled via a client custom field: https://docs.whmcs.com/Custom_Fields

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Hello Andrew, Thanks for explanation.

Are you sure that Rule 2: (Create a rule for India -> Any State) will exclude state selected in Rule 1:

If you are sure, then please do create a post for WHMCS users in India and send them these steps. This will save lot of time and number of support tickets for WHMCS team..

Thank you!

Deepak Sakhrani

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Only a single rule from each level will apply, and the rules are checked in order. So the Mumbai rule would be checked before the any state rule. As long as the state is Mumbai, then it will match and then go to check level 2 rules.

The order the rules are added is important.

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Hello Mr. Deepak Sakhrani

We had already tested with the condition as explained by Andrew.

It works just perfect to the current scenario of (CGST+SGST) and IGST

All you have to do, configure both these options with Level 1 Taxes.

Add the first rule, Selecting the Country as India, and your State Maharashtra. Now fill tax name as CGST + SGST at 18%

Next, add another rule to Level 1, selecting country as India, leaving All States in next option. Then fill tax name as IGST at 18%.

Now, once an invoice is generated for a customer, based on the State setup to his profile in WHMCS, the tax rates are applied.

If there is no entry for State in their profile, it would automatically take it as IGST.

The above setup may hold untrue, if the government decides to vary their decision, or the SGST component for each state varies.

Cheers,

Balaji Sankaranarayanan

Tecknologics Web Engineering Solutions (I) Pvt. Ltd.

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we required 3 level of rule

SGST : 9%

CGST : 9%

IGST : 18%

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Hello, This was already setup and tested long back... we are now working on formatting invoice template as per GST invoice requirements. I am not sure if you had this issue of using new invoice format in WHMCS. If you find any solution then do let us know.

Appreciate your feedback... Thank you!

With best wishes,

Deepak Sakhrani

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How do we configure UGST for union territories in India?

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I followed the instructions and it went well. I got one issue which i need to fix asap.

After changing the rules, my old bills are still the same with old tax rules but tax names got changed to GST rules name which can confuse customers.

Please advise what we can do about it.

Thanks,

Tarun

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Hi,

I applied above mentioned scenarios in WHMCS and it worked just fine. I got one problem and need advise.

After changing the rules, my previous bills are still on same calculations but tax rule names got changed to new one, which can cause confusion.

Please advise.

Thanks,

Tarun

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Hello, The Tax Rule setting up from the Best answer works perfectly. But one doubt is that each product will have different Tax rate, so how can we generalize or set up as 18% as a default tax rate. Can anyone suggest how to add tax rates per invoice item as here https://cleartax.in/s/gst-invoice