Step 1 : Edit the company master with following mandatory details if you have created already.
Go to: Home > Control Panel > Company Setup > Click on add /modify company > Click on edit button (the company you want to enable GST)
The Country, State and GSTIN fields are mandatory to enable GST structure for the company
Step 2: Setup Customer and Vendor master (business partner) with their proper address (State or place of supply)
Go to: Home > Sell > Setup > Business Partner > Add or Edit
Here, the Country, State and GSTIN fields are mandatory to find SGST + CGST or IGST in transactions level
We have to do this setup to every customer, vendor, sub-contractor and service providers
Step 3: Create HSN Structure
What is HSN Code?
The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System of Nomenclature” or simply “HSN” is a multipurpose international product nomenclature developed by the World Customs Organization. The purpose of using the HSN codes is to ensure that GST invoicing practices are in tune with international standards of product nomenclature.
Go to : Home > Accounts > Setup > HSN >Add
Here, the HSN and IGST field are mandatory. We can create multiple tax value of particular HSN code.
Also we can map the corresponding ledger accounts here from Chart of Accounts. If we provide IGST value then the system will split and assign the value to CGST and SGST automatically.
Step 4: Edit or Add Item Master
Here, we have to map the related HSN code to the every item.
Note: if one HSN code have multiple tax tariff then user must select the appropriate tax percentage in line item of particular transaction.
Importance of HSN code
This declaration is required along with the HSN code of such commodity.
The system will automatically pick tax rate under GST regime based on these HSN codes.
Thus it is of utmost importance to mention correct HSN codes at the time of enrollment or registration under GST.