Taxes in India

The JD Edwards EnterpriseOne India Localization system from Oracle provides tax processing for these types of taxes that are assessed in India:

Type of Tax	Description
Goods and Services Tax (GST) (Release 9.2 Update)	Goods and Services Tax (GST) is a destination-based tax applicable for the supply of goods and services or both. GST is administered concurrently by the central and state governments throughout the value chain. The central government levies the Central GST (CGST) and the state government levies the State GST (SGST) on every supply of goods and services within a state. Both CGST and IGST are levied on the same taxable basis. Integrated GST (IGST) is levied on all inter-state supplies by the centre and then transferred to the destination state. IGST is also levied on imports of goods to India. A portion of the revenue goes to the state government of the consuming state. See Understanding GST (Release 9.2 Update)
Excise Duty	This federal tax is assessed on goods that are produced or manufactured and intended for consumption in India. Excise tax is an indirect tax that the manufacturer passes on to the consumer. The liability for the tax occurs when the goods are manufactured; however, the tax is not accounted for until the goods are shipped. Customers pay the excise tax or duty when they purchase a product. A tariff act specifies which products are assessed for excise tax. See Understanding Excise Tax.
Service Tax	This federal tax is assessed on services that are provided. Service tax is an indirect federal tax that the service provider passes on to the customer. The service provider is responsible for issuing invoices and charging service taxes to customers. See Understanding Service Tax.
Value-added tax (VAT)	This state tax is assessed on the value added to products and goods at different stages of production and distribution. The value added is the difference between the sales price and the purchase price. The state defines the tax rate percentage for a product or item. Some items are exempted from VAT. VAT applies when a product is shipped to a customer whose receiving location is within the same state. When products within a company are transferred to another location that is in a different state, a retention percentage is retained. See Understanding VAT.
Sales Tax	This state tax is assessed on the sale of goods and services. The tax rate percentage depends on the goods and their classification and whether the transaction is conducted within the state (intrastate trade) or outside the state (interstate trade). See Understanding Sales Tax.
Purchase Tax	This state tax is assessed on the purchase of goods. The buyer pays the tax for goods that they purchase from the dealer, and the dealer remits the collected tax to the tax authorities. See Understanding Purchase Tax.
Tax collected at source (TCS)	This federal tax is assessed on goods that are purchased by customers. The supplier charges the tax to the customer and remits the amount to the tax authorities. See Understanding TCS.
Tax deducted at source (TDS) and Works contract tax (WCT)	TDS is a tax that is deducted from income that a company in India pays to a recipient or supplier if the income amount exceeds a specific statutory limit in a financial year. Income might include salary, interest and dividends, payments to contractors and subcontractors, and so on. WCT is a tax that is assessed on contracts for labor, work, or services. Contracts for work include construction, manufacturing, repair, and so on. This tax is not based on the sale of goods. See Understanding TDS and Understanding WCT.