GST calculation and invoicing

In Kladna, GST (Goods and Service Tax) calculations are supported in basic transactions and printed forms:

• Tax Invoice, Sales Invoice (Sales Invoices);
• Sales Quotation (Sales Orders);
• Request for Quotation (Purchase Orders).

Kladana cannot replace accounting software as Tally, for instance. GST is supported only in the most commonly used transactions and printed forms, but full GST compatible workflow is not available.

• GST limitations in Kladana
• GST in Tax Invoices and Sales Invoices
• GST settings
• GST settings usage
  • Use Case 1
  • Use Case 2
  • Use Case 3
  • Use Case 4

GST limitations in Kladana

Please note that Kladana does not support such common GST documents and instruments as:

• Credit Note;
• Debit Note;
• Bill of Supply;
• Delivery Challan;
• Retainer Invoice;
• E-way bill;
• E-invoicing.

GST in Tax Invoices and Sales Invoices

Sales Invoices are used to keep records of issued invoices. Sales Invoice can be printed as Tax Invoice or Sales Invoice.

Tax Invoices and Sales Invoices are given to the buyers. For more information, see Use Case 1.

Tax Invoice and Sales Invoice do not change the stock. Only Shipment and Receiving affect the stock.

Be aware that Tax Invoice is a print form on the basis of Sales Invoice transaction. If you need to support continuous numbering, please pay attention to the numbers of transactions.

GST Settings

In Kladana GST calculations are precisely performed if the following settings are specified correctly:

• Company (Legal Entity) GST details and GSTIN;
• Counterparties' GST details and GSTIN;
• Tax rates in transactions;
• HSN code in product cards, SAC code in service cards. Both HSN and SAC codes are not indicated in transactions, but they are specified in printed forms.

Step 1. Company GST setup

1. In the Kladana workspace, click on the user icon and select Settings → My Companies and Tax Settings.
2. Select the company in the list of your companies.
3. Specify your legal and tax details:
   • Select GST Treatment (required field). If the company is GST registered, select the Tax Included checkbox and choose GST Treatment → Registered. For GST registered companies the State of registration is required.
   • Select Country of your company registration (required field).
4. Click Save.

Step 2. Counterparty GST setup

1. In the Kladana workspace, click on the user icon and select Counterparties → Customers & Suppliers.
2. Select the counterparty in the list of your counterparties or click +Counterparty to create the new one.
3. Specify the following counterparty details:
   • Name (required field);
   • Type of the counterparty (Customer, Supplier, Both Customer and Supplier);
   • GST Treatment;
   • GSTIN;
   • Country and State of the counterparty registration (required fields);
   • PAN;
   • Full Company Name, Billing Address, and Comment to Address if necessary.
4. Click Save.

Step 3. Tax rates setup

In transactions tax rate should be specified for every item: for a product, a service, or a bundle. Tax rates affect the calculations in transactions. If you want to set tax rates automatically for a product in each transaction, specify the tax rate of a product in the product card. If you need to indicate or edit tax rate of the specific item in the specific transaction, in a Sales Order for instance, you can do it manually in the line in transaction.

When you create a transaction, you should specify your company (My Company field) and the counterparty (Customer field).

• If your company (Legal Entity) is GST registered, GST is calculated automatically in the transaction.
• If your company and the counterparty are registered in the same state, CGST and SGST are calculated in the transaction.
• If your company and the counterparty are registered in different states, IGST is calculated in the transaction.

GST feature usage examples

Use Case 1

You have one company (Legal Entity). It is not GST registered, and you do not need any GST calculations in transactions.

1. In the Kladana workspace, click on the user icon and select Settings → My Companies and Tax Settings.
2. Select the company in the list of your companies.
3. In the Legal and Tax Details section:
   • Uncheck the Tax Included checkbox.
   • Select GST Treatment Unregistered;
4. Click Save.

Now in all transactions like Sales Order, Sales Invoice, Shipment GST won't be calculated. You can print Sales Quotation (Sales Orders), Request for Quotation (Purchase Orders), and Sales Invoice (Sales Invoices) without GST.

Use Case 2

You have one company (Legal Entity). It is GST registered. In Kladana you want to create GST compatible transactions and print GST correctly documents.

• Carefully indicate your company (Legal Entity) and counterparties details, HSN and SAC codes in product and service cards (GST settings).
• After creating a Sales Order, you can print Sales Quotation form or send it to the customer, GST will be calculated in the transaction and shown in the document.
• On the basis of a Shipment transaction or Sales Order you can create  Sales Invoice  transaction. Then choose Print >> Tax Invoice form for you and your customer.
• Do not delete transactions so that the numbering does not go astray. Print or send them via email in the Kladana workspace.
• If necessary send the printed forms copies to your accountant to register them in the accounting program.
• If you need to create any GST compatible transaction or printed form which is not supported in Kladana, please contact your accountant to create them in the accounting program.

Use Case 3

You have some companies (Legal Entities). Some of them are GST registered, the others are not. In Kladana you want to create transactions and printed forms on behalf of all the companies.

• Set up GST registered companies according to Use Case 2 and unregistered companies according to Use Case 1.
• Set up separate transaction numbering for every company:

1. In the Kladana workspace, select the section. For instance, Sales → Sales Invoices.
2. Click .
3. Uncheck the Independent numeration of transactions for legal entities checkbox.
   
4. For GST registered companies print Tax Invoice documents, for unregistered companies print Sales Invoices or do not print any invoices. In this case there will be continuous numbering in Tax Invoice documents.  
5. Click Save.

Use Case 4

You have one company (Legal Entity). It is GST registered. But you also have some departments registered in different states (different GSTINs).

1. Create some your companies in Kladana space paying attention to the following settings:
   • Name. Specify your company short or internal name. For example, Maharashtra Fruits, Karnataka Fruits, etc.;
   • In the Legal and Tax Details section specify Registration Name, State, GSTIN.
   
2. Set up separate transaction numbering for transactions you need. For more information, see Use Case 3.
3. When you create a transaction connected to the specific department or warehouse, specify the company (My Company field) which the department or warehouse belongs to.

Thus, in the Kladana workspace, you have the general transaction list. The transactions differ by the company details (My Company field). GSTIN is taken into account in the tax calculations. Printed forms have the separate numbering and correct details. 

See also

My Company and Tax Settings

Tax rates