- Good and Services Tax (GST)
- Value Added Tax (VAT)
- Harmonized Sales Tax (HST)
For managing consumption tax, companies need to separately maintain tax paid to the supplier and received from customers. The difference of balances of these accounts helps companies in determining the tax amount payable to the government authorities.
Setting up GST Accounts
Create a GST tax accounts based in the GST rate applicable on your items. Following is an example of how you can setup GST tax account can be created for the Company in your ERPNext account.
Sales and Purchase Tax Masters
Posting in Tax Ledgers
Posting in tax ledger will happen on the submission of Sales Invoice and Purchase Invoice.
Paying Tax to the Government
|GST 18%||270||Tax received from Customers|
|GST 18%||180||Tax already paid to Suppliers|
|Tax Payable||90||Tax payable to government|
Umair is the Chief Customer Officer at ERPNext. He has done more than 50 ERP implementations remotely and replies to most incoming inquiries.