GST Application in India
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.
Hiya Digital Private Limited