Fwd: Implementing GST tax in Ofbiz - CGST , SGST , IGST

[Vaibhav Jain]

Moving discussion to DEV list
==========================================================

Hello Rajesh/Everyone,

GST(India) can be implemented in OFBiz as follow:

After GST tax will apply on the basis of HSN code of product not on the
product directly. So we can associate HSN code with tax slab in
ProductCategoryRollup entity like

<ProductCategoryRollup productCategoryId="HSN_XXXXXX"
parentProductCategoryId="TAX_SLAB" fromDate="2017-07-01 12:00:00.0"
sequenceNum="1"/>

As we need to define tax slab, ProductCategory entity can be used to
categorise the tax slabs like

<ProductCategory productCategoryId="TAX_SLAB"
productCategoryTypeId="TAX_CATEGORY"
description="5.00 %" categoryName="5.00 %"/>

Now tax slab is associated with HSN. So, product will be associated with
HSN code in ProductCategoryMember entity like

<ProductCategoryMember productCategoryId="HSN_300310" productId="XXXXXXXX"
fromDate="2001-01-01 12:00:00.000"/>

 All the HSN code can be stored in ProductCategory entity

<ProductCategory productCategoryId="HSN_XXXXXX"
productCategoryTypeId="HSN_CATEGORY"
categoryName="XXXXXX" description="Cheese and curd"/>

Tax authority can be stored in PartyTaxAuthInfo entity like

<PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="_NA_"
taxAuthPartyId="IGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
partyTaxId="XXXXXGSTINXXXXXXX"/>
<PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IND"
taxAuthPartyId="CGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
partyTaxId="XXXXXGSTINXXXXXXX"/>
<PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IN-AN"
taxAuthPartyId="IN-AN_UTGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
partyTaxId="XXXXXGSTINXXXXXXX"/>
<PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IN-AP"
taxAuthPartyId="IN-AP_SGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
partyTaxId="XXXXXGSTINXXXXXXX"/>

GST can be configurable in OFBiz using ProductStoreTaxSetting entity
We can write a separate service to calculate GST and configure at
ProductStore level using taxServiceName attribute of ProductStoreTaxSetting
entity.

Just for Info
Right now In PO and SO OFBiz does not entertain both SHIP_ORIG_LOCATION and
SHIP_DESTINATION_LOCATION. We need to introduce this as well to calculate
the GST.

Thanks & Regards

Vaibhav Jain
Hotwax Systems,
[hidden email]

On Mon, Oct 9, 2017 at 8:13 PM, Rajesh Mallah <[hidden email]>
wrote:

> Hi ,
>
> I need help regarding how to apply taxes   broadly based on the
> fact whether the supplier and consumer are in same state or not.
>
> We are able to apply taxes based on GEO ID of the customer but
> what is really required is the below:
>
> If Supplier.state == Customer.state
>       add adjustment SGST @  X%
>       add adjustment CGST @  X%
> else
>       add adjustment IGST  @  X+X%
>
>
> where:
> CGST --> Central Goods & Services Tax
> SGST --> State Goods & Services Tax
> IGST  --> Integrated Goods & Services Tax
>
>
> Any help on this regard is solicited.
>
>
> regds
> mallah.
>

[Vaibhav Jain]

Rajesh replies this on user mailing list.

Thanks Vaibhav for the reply , Although we have been asked to move this
discussion to dev ML . [ apologies for that ;-) ]

bypassing HSN is just a temporary arrangement as our product line has a
fixed HSN code , so we have keep the rate at flat 9% or 18%.
The ability to have different tax rates for different Product Category
already
exists so it shall be best to bank upon it .
(as you have already done it in the example you gave).

>>
>> As we know GST in India is based on ORIG_LOCATION and DEST_LOCATION
>> and is currently it is the only tax.
>>
>> But in a general situation where you have "GST like" taxes and some other
>> taxes
>> also  say "Education Cess" (now defunct,i think) there needs to be an
>> option to
>>

>Thanks for the make me remeber about about "CESS". Yes we need to entertain
>"CESS" as well.

>> have custom logic association with different kind of taxes and was the
>> concern which
>> i had raised.
>
> Not able to get your point. Can you please elaborate?

Governments of various GEOIDs are free to implement arbitrarily complex or
simple
tax regimes . So i was asking for categorization of taxes so that
appropriate logic
(based on local tax regime) can be applied to various "kinds" (category) of
taxes.

As a person who is adopting ofbiz for first time , my convenience would
have been

(1) ofbiz OOTB UI / Web Tools allowed me to create  some Tax Categories
(2) ofbiz OOTB UI / Web Tools allowed me to associate a TaxAuthority with
one or more Tax Categories
(3) write code in calcTax to provide appropriate treatment to TaxAuthority
based on its  Tax Category.

hope i was able to convey.

kind regards

Vaibhav Jain
Hotwax Systems,
[hidden email]

On Thu, Oct 12, 2017 at 11:42 AM, Vaibhav Jain <
[hidden email]> wrote:

> Moving discussion to DEV list
> ==========================================================
>
> Hello Rajesh/Everyone,
>
> GST(India) can be implemented in OFBiz as follow:
>
> After GST tax will apply on the basis of HSN code of product not on the
> product directly. So we can associate HSN code with tax slab in
> ProductCategoryRollup entity like
>
> <ProductCategoryRollup productCategoryId="HSN_XXXXXX"
> parentProductCategoryId="TAX_SLAB" fromDate="2017-07-01 12:00:00.0"
> sequenceNum="1"/>
>
> As we need to define tax slab, ProductCategory entity can be used to
> categorise the tax slabs like
>
> <ProductCategory productCategoryId="TAX_SLAB"
> productCategoryTypeId="TAX_CATEGORY" description="5.00 %"
> categoryName="5.00 %"/>
>
> Now tax slab is associated with HSN. So, product will be associated with
> HSN code in ProductCategoryMember entity like
>
> <ProductCategoryMember productCategoryId="HSN_300310" productId="XXXXXXXX"
> fromDate="2001-01-01 12:00:00.000"/>
>
>  All the HSN code can be stored in ProductCategory entity
>
> <ProductCategory productCategoryId="HSN_XXXXXX"
> productCategoryTypeId="HSN_CATEGORY" categoryName="XXXXXX"
> description="Cheese and curd"/>
>
> Tax authority can be stored in PartyTaxAuthInfo entity like
>
> <PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="_NA_"
> taxAuthPartyId="IGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
> partyTaxId="XXXXXGSTINXXXXXXX"/>
> <PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IND"
> taxAuthPartyId="CGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
> partyTaxId="XXXXXGSTINXXXXXXX"/>
> <PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IN-AN"
> taxAuthPartyId="IN-AN_UTGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
> partyTaxId="XXXXXGSTINXXXXXXX"/>
> <PartyTaxAuthInfo partyId="COMPANY" taxAuthGeoId="IN-AP"
> taxAuthPartyId="IN-AP_SGST" fromDate="2017-06-01 00:00:00.0" isNexus="Y"
> partyTaxId="XXXXXGSTINXXXXXXX"/>
>
> GST can be configurable in OFBiz using ProductStoreTaxSetting entity
> We can write a separate service to calculate GST and configure at
> ProductStore level using taxServiceName attribute of ProductStoreTaxSetting
> entity.
>
> Just for Info
> Right now In PO and SO OFBiz does not entertain both SHIP_ORIG_LOCATION
> and SHIP_DESTINATION_LOCATION. We need to introduce this as well to
> calculate the GST.
>
> Thanks & Regards
>
> Vaibhav Jain
> Hotwax Systems,
> [hidden email]
>
> On Mon, Oct 9, 2017 at 8:13 PM, Rajesh Mallah <[hidden email]>
> wrote:
>
>> Hi ,
>>
>> I need help regarding how to apply taxes   broadly based on the
>> fact whether the supplier and consumer are in same state or not.
>>
>> We are able to apply taxes based on GEO ID of the customer but
>> what is really required is the below:
>>
>> If Supplier.state == Customer.state
>>       add adjustment SGST @  X%
>>       add adjustment CGST @  X%
>> else
>>       add adjustment IGST  @  X+X%
>>
>>
>> where:
>> CGST --> Central Goods & Services Tax
>> SGST --> State Goods & Services Tax
>> IGST  --> Integrated Goods & Services Tax
>>
>>
>> Any help on this regard is solicited.
>>
>>
>> regds
>> mallah.
>>
>
>
>