Setting Up Items for GST Processing

To set up items for tax processing, use the Item Tax Applicability component (ITEM_MASTER_EXS) and the Item BU Tax Applicability component (ITEM_BU_EXS).

This section discusses how to set up items for Tax Processing.

Note: Setting up items for GST processing and customs duty is shared unless otherwise specified.

Page Name

Definition Name

Usage

Item Business Unit Tax Applicability Page

ITEM_BU_EXS_GST

Define business unit-level GST applicability details for items.

Item Tax Applicability Page

ITEM_MASTER_EX_GST

Define GST applicability details for items.

Use the Item Tax Applicability page (ITEM_MASTER_EX_GST) to define GST applicability details for items.

Navigation:

Set Up Financials/ Supply Chain > Common Definitions > India GST > Item Tax Applicability

This example illustrates the fields and controls on the Item Tax Applicability page. You can find definitions for the fields and controls later on this page.

 Item Tax Applicability

GST Details

Field or Control

Description

GST Applicable

Select this check box to indicate that if this item is used on a transaction, then the item is subject to GST.

Reverse Charge Applicable

Select this check box to enable GST on a reverse charge basis for the item.

Item Tax Applicability

Select an option that indicates how to report zero rated GST or non-GST transactions.

Options include:

  • Composite Taxable Person

  • Exempt

  • Nil Rate

  • Non GST

Tax Category

Select an option that indicates the tax rate code to use in a transaction.

HSN Code

Enter the HSN code specific to the item.

Tax Item Type

Select an option that indicates which tax determination rules to use for GST items.

ITC Eligible

Select an option that indicates how to group and report a transaction when the item is used.

Options include:

  • Capital Goods

  • Ineligible

  • Input Services

  • Inputs

Custom Duty Details

Field or Control

Description

Custom Duty Applicable

Select to indicate that Custom Duty is applied when this item is imported to India.

Custom Tax Category

Select an option that indicates which custom tax category to use for the item. Tax categories are defined on the Tax Category Page.

Use the Item Business Unit Tax Applicability page (ITEM_BU_EXS_GST) to define business unit-level GST applicability details for items.

Navigation:

Set Up Financials/ Supply Chain > Common Definitions > India GST > Item BU Tax Applicability

This example illustrates the fields and controls on the Item Business Unit Tax Applicability page. You can find definitions for the fields and controls later on this page.

 Item Business Unit Tax Applicability

The Item Business Unit Tax Applicability page is similar to the Item Tax Applicability page. You define the GST applicability details for items at the business unit level.

GST Details

Field or Control

Description

GST Applicable

Select this check box to enable GST for the transaction. If the business unit uses this item on a transaction, GST is applicable.

Item Tax Applicability

Select an option that indicates how to report zero rated GST or non-GST transactions.

Options include:

  • Composite Taxable Person

  • Exempt

  • Nil Rate

  • Non GST

Item Tax Type

Displays the option selected on the Item Tax Applicability page.

HSN Code

View the HSN code specific to the item.

ITC Eligible

Displays the option selected on the Item Tax Applicability page.

Custom Duty Details

The field definitions are the same as those on the Item Tax Applicability Page above.