Multiple, coexistent, indirect taxes-calculation

The requirement is for tax to be controlled in these instances:

  • Every movement of goods operation between parties, even if it is not a sale such as accounts receivable
  • Provision of services between parties, depending on the customer, customer address, product, and the business transaction type (CFOP).

India specifics

GST is a tax on the supply of goods or services. It is a value-added tax (VAT). GST is applicable at all points in the supply chain, with a credit for input taxes paid at each stage of the supply chain available at the subsequent stage of value added. The final consumer bears only the GST charged by the preceding dealer in the supply chain, and offsets the cumulative input GST from all previous stages. GST has no tax on tax.

GST is a destination-based tax as opposed to the current concept of origin-based taxes in India.

  • Central Goods and Service Tax: Applicable on Intra state supply of goods and services
  • State Goods and Service Tax: Applicable on Intra state supply of goods and services
  • Integrated Goods and Service Tax: Applicable on Interstate supply of goods and services

Given the federal structure of India, there are two components of GST: Central GST (CGST) and State GST (SGST). Both the Centre and States will simultaneously levy GST across the value chain on every supply of goods and services. The Centre will levy and collect CGST, and States will levy and collect the SGST on all transactions within a State. Both are levied on the same price or value, with no cascading. State VAT is levied on the value of the goods inclusive of Central Excise.

The input tax credit of CGST is available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST that is paid on inputs are allowed for paying the SGST on output. No cross utilization of credit is permitted.

How Infor meets the requirement

The tax code values for customer orders, billing invoices, and purchase orders are based on the item, origin and destination address, and HSNSAC Code.

See Enabling the GST tax calculations.