1. Using Financials for Asia/Pacific
  2. Manage GST Registration Numbers

Manage GST Registration Numbers

A key legal requirement in many countries is to establish and apply the GST registration for a business with the relevant tax authorities.

A unique GST registration number is generally assigned to a taxpayer registered with the applicable GST authorities. The registration number is used as a basis for referencing and tracking the tax obligations of a taxpayer. In some cases, tax determination and its compliance administration are dependent on the type of the taxpayer registration.

Case Study:

A GST regime has two taxes that have State level jurisdictions, and require a taxpayer to register. The taxpayer has specific business operations. For a given state, the GST registration number is the same for both taxes in that GST regime.

Trader Green Corp. has business operations in two states Telangana (TS) and Tamil Nadu (TN). Therefore, Green Corp. has two GST registration numbers for the states TS and TN respectively. The customers and suppliers of Green Corp. also have GST registration numbers for compliance and administration purpose.

You can fulfill the GST registration requirement in Oracle ERP Cloud using the Manage Tax Registrations feature.

For the given case study, the first-party and legal entity is Green Corp. in Oracle ERP Cloud.

Legal Reporting Units

Legal reporting unit (LRU) is the lowest level component of a legal structure that requires tax registrations. For the legal entity Green Corp., it is necessary to configure two LRUs for the tax registration number pertaining to the two states of TS and TN. Configure tax registrations for each respective LRU on the Manage Tax Registrations page.

Configure Legal Reporting Unit

To configure legal reporting unit, follow these steps:

  1. Sign in as a Tax Manager.
  2. Navigate to Setup and Maintenance, Financials, Transaction Tax, and Manage Tax Registrations
  3. On the Manage Tax Registrations page, change the page-level switcher to Third-Party Site Tax Profiles.
  4. Navigate to Setup and Maintenance, Financials, Transaction Tax, Manage Legal Reporting Unit.

    This table displays the attributes and values defined for the legal reporting unit:

    Attribute Value Comments
    Territory TS The legal reporting unit representing the state of Telangana.
    Name Green Corp. TS The name of the legal reporting unit selected by the user.
    Main Legal Reporting Unit Yes Not applicable.
    Legal Reporting Unit Addresses
    Country India The country of the legal reporting unit address for tax registration purposes.
    Address Line 1 Operation Building The street of the legal reporting unit address for tax registration purposes.
    Address Line 2 Not applicable.
    City Hyderabad The city of the legal reporting unit address for tax registration purposes.
    State TS The state of the legal reporting unit address for tax registration purposes.
    Postal Code 500081 The postal code of the legal reporting unit address for tax registration purposes.
    Territory TN The legal reporting unit representing the state of Tamil Nadu.
    Name Green Corp. TN The name of the legal reporting unit selected by the user.
    Main Legal Reporting Unit No Flag used to designate whether this record represents a main legal reporting unit.
    Legal Reporting Unit Addresses
    Country India The country of the legal reporting unit address for tax registration purposes.
    Address Line 1 Services Building The street of the legal reporting unit address for tax registration purposes.
    Address Line 2 Not applicable.
    City Chennai The city of the legal reporting unit address for tax registration purposes.
    State TN The state of the legal reporting unit address for tax registration purposes.
    Postal Code 600019 The postal code of the legal reporting unit address for tax registration purposes.

First Party Registration Numbers

To set up tax registrations for a legal reporting unit, follow these steps:

  1. Navigate to Setup and Maintenance, Financials, Transaction Tax, and Manage Tax Registrations
  2. On the Manage Tax Registrations page, change the page-level switcher to Legal Reporting Unit Tax Profiles.
  3. In the Tax Registrations tab, click Create.
  4. Create the legal reporting unit tax registrations using the following values:
Attribute Value Comments
Legal Reporting Unit Green Corp. TS Select from a list of values.
Tax Regime Code GST Select from a list of values.
Registration number 36AASPF6826T1ZB Enter the first-party tax registration number.
Legal Reporting Unit Green Corp. TN Select from a list of values.
Tax Regime Code GST Select from a list of values.
Registration number 45NYSPF6826T1ZB Enter the first-party tax registration number.

Third Party Registration Numbers

For the given case study, the suppliers and customers of Green Corp. are considered third parties in Oracle ERP Cloud. Third party registration numbers of suppliers and customers are recorded and reported from the Manage Tax Registrations page. You can create tax registrations either at The Third Party Tax Profiles level or at the Third Party Site Tax Profiles level. Oracle ERP Cloud prioritizes the tax registration number at the Third Party Site level, and if there is no existing tax registration record, the tax registration number at the Third Party level is used.

To create a Third Party Site Tax Profile, follow these steps:

  1. Navigate to Setup and Maintenance, Financials, Transaction Tax, and Manage Party Tax Profiles.
  2. On the Manage Party Tax Profiles page, change the page-level switcher to Third-Party Site Tax Profiles.
  3. Under the Tax Profiles tab, click Create
  4. Select the Party Site Number from the list of values.
  5. Click Save and Close.
To set up tax registrations for a third-party site, follow these steps:
  1. Navigate to Setup and Maintenance, Financials, Transaction Tax, and Manage Tax Registrations
  2. On the Manage Tax Registrations page, change the page-level switcher to Third-Party Site Tax Profiles.
  3. Under the Tax Registrations tab, click Create.
  4. Create a Third-Party Site Tax Registration for the registered third-party using these values:
    Attribute Value Comments
    Party Site Number XXXX Select from a list of values.
    Tax Regime Code GST Select from a list of values.
    Tax Registration status Registered Select from a list of values.
    Registration number 36AASPF6825M1ZB Enter the Goods and Services Tax Identification Number of the customer or supplier.
  5. Create another Third-Party Site Tax Registration for the registered third-party using these values:
    Attribute Value Comments
    Party Site Number AAAA Select from a list of values.
    Tax Regime Code GST Select from a list of values.
    Tax Registration status Not Registered Select from a list of values.
    Registration number NULL There will not be any registration number for Not-registered suppliers.
  6. Click Save and Close,

    Note: You should maintain tax registration records for both Registered and Not-registered third-parties.

Tax Registration Levels

You can define tax registrations at three different levels of detail:

  • Tax regime level

    The tax registration is used for all taxes and tax jurisdictions within the tax regime.

  • Tax level

    The tax registration is used for all tax jurisdictions where the tax regime and tax are applicable.

  • Tax jurisdiction level

The tax registration is applicable for the locations covered under the tax jurisdictions defined for the tax regime, tax, and tax jurisdiction.

A tax regime is mandatory in order to define a tax registration for all three levels. In turn, a tax is mandatory to define a tax registration for the tax jurisdiction level.

In the given case study, the tax registration number is common for the two taxes under the GST regime. Hence, tax registrations defined at a tax regime level will be appropriate. In this context, you must leave the tax and tax jurisdiction columns blank. If you don’t leave them blank, duplicate records will exist for the same tax registration number.