Calculating GST for expense using party.

There are various scenarios in indian gst on different type of transactions.
Let us see how we can calculate gst on vendor that are actual not vendors in my system (i.e. Parties). The use of party was used for calculating TDS on vendors which are not vendors in my system, where we need not maintain ledgers for them. We just use them for calculating TDS. The functionality of party has not been extended for calculating gst also.
Nav 2016 CU Update 30 contains new functionality by which we can do GST transaction on general Journal. It gives us functionality by which we can book direct Invoice against Vendors also ,were there is an option by which we can do GST Transaction against Party for which No Vendor cards need to be created in the System.
Mandatory Fields need to be updated before transaction.

• State Code on Parties
• GST Party Type on Parties
• GST Vendor Type on Parties
• GST Registration Type on Parties and Location Code.
• GST Registration No. on Parties.

In the above scenario we can see that we had selected Party Type and Party Code for booking bill for G/L Account.

• Fields which need to be filled up in General Journal for GST Transaction.

Fields	Data value
Posting Date	Date of posting
Document Type	Document type will be Invoice
Document No.	Document No.
External Document No.	Vendor Invoice No.
Party Type	Party Type if we are booking bill against Party
Party Code	Party Code
Account Type	Vendor
Account No.	Vendor Acc No.
Description	Description
Gen. Posting Type	Purchase
Amount	Transaction Amount
Total GST Amount	System Calculated GST Value
Bal. Account Type
Bal. Account No.	Bal. Account No.
Location Code	Location Code
GST Group Type	GST Group Type i.e Goods/Services
GST Group Code	GST Group Code
GST Vendor Type	GST Vendor Type i.e Registered or Unreg
GST Base Amount	GST Base Amount
HSN/SAC Code	HSN/SAC Code
GST Credit	Availment or Unavailment
Exempted	Exempted or not

After that we have to click on Calculate GST Function on Home tab of General Journal as shown in Image below to Calculate GST for the Transaction.

Now that we have calculate GST we shall now post and check the transactions.
G/L Impact of the Transaction.

Posting Date	Document Type	G/L Account Name	Description	Gen. Posting Type	Amount
23-01-2020	Invoice	Lease	Lease	Purchase	1,000.00
23-01-2020	Invoice	IGST Rcvble Acc	Lease		180
23-01-2020	Invoice	Giro Account	Lease		-1,180.00

Detailed GST Ledger Impact of the transaction.

Transaction Type	Document Type	Posting Date	Type	No.	Source Type	Source No.	GST Component Code	GST %	GST Jurisdiction Type	GST Base Amount	GST Amount
Purchase	Invoice	23-01-2020	G/L Account	1401	Party	LANDLORD	IGST	18	Interstate	1,000.00	180

External Document No.	Location State Code	Buyer/Seller State Code	Location  Reg. No.	Buyer/Seller Reg. No.	GST Group Type	GST Credit	GST Vendor Type	Credit Availed
INVLFS0011	MAH	ND	19LOCAT1100REGI	09COMPA0007INFO	Service	Availment	Registered	Yes

That’s it.

ARN (Application Reference Number) for GST Calculation.

In NAV 2016 CU 31 Feature of Calculating GST with ARN was released.

GST ARN number stands for Application Reference Number. GST ARN number is generated on the GST Portal automatically on submission of a GST registration application.

GST ARN number can then be used for tracking the status of GST registration application until GST Certificate and GSTIN is issued by the Government.

ARN No Field is available under tax information tab under GST heading for both Customer and Vendor master.

Once ARN No. is entered GST Vendor / Customer Type will be updated to Registered/ Composite/SEZ as required.

After updating ARN No. we can select Vendor or customer for our Purchase or Sales Transaction and system will calculate GST for the same.

After posting the transaction system will Update ARN No. in Detailed GST ledger entry for the transaction with GST Customer/Vendor Type.

Once the vendor / customer gets his GST no., you need to only update that on the masters. Once that is updated you need to execute the Update GST Registration No. batch provided under GST -> Task for the specific period.

Once the batch is executed system shall update GST no. on all transaction in that specified period.

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