Select Page

GST – Goods and Service Tax Implementation in India for Microsoft Dynamics NAV 2016 – India

Microsoft has released a whitepaper for Goods & Service Tax, providing the lists of objects and development to be done, the proposed whitepaper has update of only Dynamics NAV supporting version NAV 2016. For more information please refer to the following link:

https://mbs.microsoft.com/customersource/Global/NAV/downloads/tax-regulatory-updates/nav2016gstindia

Direct PDF download link: WhitePaperINGSTNAV2016

GST India – Goods & Service Tax

gst

Goods and Service Tax is being glorified as a system of taxation by which economy will take an upward swing and further it will ease the trade and industry with respect to the indirect tax system of the country. “Only one” indirect tax has to be paid by the trade and industry and all the other indirect taxes will be subsumed in GST.

What is GST?

GST is a consumption based tax levied on sale, manufacture and consumption on goods & services at a national level. This tax will be substitute for all indirect tax levied by state and central government. Exports and direct tax like income tax, corporate tax and capital gain tax will not be affected by GST. GST would apply to all goods other than crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. It would apply to all services barring a few to be specified. With the increase of international trade in services, GST has become a global standard. The proposed tax system will take the form of “dual GST” which is concurrently levied by central and state government.

This will comprise of:

  • Central GST (CGST) which will be levied by Centre
  • State GST (SGST) Which will be levied by State
  • Integrated GST (IGST) – which will be levied by Central Government on inter-State supply of goods and services.

Many taxes has been subsumed under GST which are as under

Central Indirect Taxes &

Levies

Central Excise Duty
Additional Excise Duties
Excise Duty levied under the

Medicinal Preparations (Excise

Duties) Act, 1955

Service Tax
Additional Customs Duty (CVD)
Special Additional Duty of

Customs

Central Surcharge and Cess
State Indirect Taxes &

Levies

VAT / Sales Tax
Entertainment tax (other than

the tax levied by local bodies)

Central Sales Tax
Octroi and Entry Tax
Purchase Tax
Luxury Tax
Taxes on Lottery
Betting and Gambling
State Cesses and Surcharges

 

Who will pocket taxes?

  • For Intra State Transactions: In case of Intra State transactions, Seller collects both CGST & SGST from the buyer and CGST needs to be deposited with Central Govt. and SGST with State Govt.
  • For Inter State Transactions: Integrated Goods and Service Tax (IGST) shall be levied on Inter State transactions of goods and services which are based on destination principle. Tax gets transferred to Importing state. More over it is proposed to levy an additional tax on supply of goods, not exceeding one percent, in the course of inter-state trade or commerce, to be collected by the Central Govt. for a period of two years, and assign to the States where the supply originates. Valuation of stock transfers to be determined. Exports and Supplies to SEZ units will be zero rated.

Setoff of IGST, CGST & SGST will be as follows in the below mentioned chronological order only.

Credit of To be Adjusted with
IGST 1) IGST
2) CGST
3) SGST
CGST 1) CGST
2) IGST
SGST 1) SGST
2) IGST

What impact GST will have on pricing of products as compared to current scenario?

Let us take an EXAMPLE to understand this clearly.

capture

In the above example, you can note that the tax paid on sale within state can be claim against tax paid on sale outside state in GST system, which is not in present tax system.

The credit of CGST cannot be taken against SGST and credit of SGST cannot be taken against CGST but both credits can be taken against IGST.

ENROLLMENT & REGISTRATION:

  • NSDL has been appointed to incubate the GST Portal and develop its functionality. NSDL has created a pilot portal known as “GST Pilot Portal”
  • Here, every tax payer will be issued a 15 digit common identification number which will be called as “Goods & Service Tax Identification Number” (GSTIN) a PAN based number.
  • Online application form for dealers will be available to provide their details and upload documents.
  • Registration includes basic steps like register themselves on the Enrolment page, and then Login using the given “User ID” and “password”, filling the application form by uploading the requisite documents related to excise, Service Tax, IEC, CIN, Professional Tax number, Shops & Establishment Number and any other state specific registration numbers, contact numbers, postal address & E-mail address of business entity, bank account details including MICR code, place of business, details of goods & services, scanned signed photographs.

Like, every coin has two sides, even this concept of GST has its own positives and negatives, we leave on the reader to decide for them the impact of GST whether on micro or macro level.

Positive Aspects

  1. The main reason to implement GST is to abolish the cascading effect on tax. A product on which excise duty is paid can also be liable for VAT. Suppose a product A is manufactured in a factory. As soon as it releases from factory, excise duty has to be paid to central government. When that product A is sold in same state then VAT has to be paid to state government. Also no credit on excise duty paid can be taken against output VAT. This is termed as cascading effect since double tax is levied on same product.
  2. The GST is being introduced to create a common market across states, not only to avoid enfeebled effect of indirect tax but also to improve tax compliance.
  3. GST will lead a more transparent and neutral manner to raise revenue.
  4. Price reduction as credit of input tax is available against output tax.
  5. Simplified and cost saving system as procedural cost reduces due to uniform accounting for all types of taxes. Only three accounts; CGST, SGST, IGST have to be maintained.
  6. GST is structured to simplify the current indirect system. It is a long term strategy leading to a higher output, more employment opportunities, and economic boom.
  7. GST is beneficial for both economy and corporations. The reduced tax burden on companies will reduce production cost making exporters more competitive.

Negative Aspects

  1. GST is being referred as a single taxation system but in reality it is a dual tax in which state and centre both collects separate tax on a single transaction of sale and service.
  2. At present the main Indirect tax system of central Government is central excise. All the goods and commodities are not covered by the central excise and further there is an exemption limit of Rs. 1.50 Crores in the central excise and further traders are not liable to pay central excise. The central excise is payable up to the stage of Manufacturing but now GST is payable up to the stage of sale.
  3. Majority of dealers are not covered with the central excise but are only paying VAT in the state. Now all the Vat dealers will be required to pay “Central Goods and service tax”.
  4. The calculation of RNR (Revenue Neutral Rate) is very difficult and further Govt. wants to enhance its revenue hence rate of Tax will be a problem. As per the News reports the proposed rate for State GST is 12% and Central GST is 14% Plus Govt. wants to impose 1% CST at the initial stage of GST on the interstate sale of Goods and services. So the normal rate of overall tax will be 26%. This rate is very high comparing to the fact that small and medium Industries are at present not covered by the central excise and most of the Goods such as agricultural products are out of the preview of the Central Excise.
  5. Improvement in the Manufacturing and distribution of Goods and service, increase in exports, various reforms, check on corruption, less Government control are some of the factors which are responsible for the economic growth of the country. A tax system can make a revolution in the economy of the country is “rarest of the rare” thing.

Error while upgrading from NAV 2013 R2 to NAV 2016 Indian Localization Database

Dear All,

While upgrading Indian Localization database from NAV 2013 R2 to NAV 2016 CU10(build 46621) found some issues during upgrade process.

We followed the standard upgrade steps given here: https://msdn.microsoft.com/en-us/library/dn271668(v=nav.90).aspx

Till task 7 everything will be fine. But during task 8, when we try to import the upgrade toolkit FOB from DVD path UpgradeToolKit\Local Objects\Upgrade710900.IN.fob, what we have seen inside the Import Worksheet window. Only 10 upgrade toolkit tables, NO upgrade codeunit and 2 tables(UPG Posting Exch. Column Def,UPG Item).

iw1
So we have import the upgrade toolkit FOB from DVD path UpgradeToolKit\Data Conversion Tools\Upgrade710900.FOB, here you can find all the required upgrade toolkit objects.

iw2

Now we started the task 9, run the Sync. Schema For All Tables – With Validation option from the development environment or run the Sync-NavTenant cmdlet from the Microsoft Dynamics NAV 2016 Administration Shell. We got the error in development environment while syncing the objects. To see error details via cmdlet please use command Sync-NavTenant with CheckOnly mode.

Below is the result from cmdlet, have errors for Length reduced fields/tables in Indian Localization No. Series.

PS C:\Windows\system32> Sync-NAVTenant -ServerInstance Demo_Upgrade_IN_71_90 -Mode Sync
Sync-NAVTenant : The schema synchronization may result in deleted data. The following destructive changes were detected:

Table: 23, Vendor
Field: 16361, Vendor Location: Length reduced
Table: 38, Purchase Header
Field: 13761, State: Length reduced
Table: 79, Company Information
Field: 13709, T.A.N. No.: Length reduced
Table: 81, Gen. Journal Line
Field: 13747, Location Code: Length reduced
Table: 120, Purch. Rcpt. Header
Field: 13701, Assessee Code: Length reduced
Field: 13761, State: Length reduced
Table: 122, Purch. Inv. Header
Field: 13701, Assessee Code: Length reduced
Field: 13761, State: Length reduced
Table: 124, Purch. Cr. Memo Hdr.
Field: 13761, State: Length reduced
Table: 5109, Purchase Header Archive
Field: 13761, State: Length reduced
Table: 6650, Return Shipment Header
Field: 13701, Assessee Code: Length reduced
Field: 13761, State: Length reduced
Table: 13719, RG 23 A Part I
Field: 33, Location Code: Length reduced
Table: 13720, RG 23 A Part II
Field: 33, Location Code: Length reduced
Table: 13721, RG 23 C Part I
Field: 33, Location Code: Length reduced
Table: 13722, RG 23 C Part II
Field: 33, Location Code: Length reduced
Table: 13723, PLA Entry
Field: 33, Location Code: Length reduced
Table: 13735, Posted Jnl. Bank Charges
Field: 2, Bank Charge: Length reduced
Table: 13761, Tax Area Locations
Field: 1, Dispatch / Receiving Location: Length reduced
Field: 2, Customer / Vendor Location: Length reduced
Table: 16321, Sub Order Component List
Field: 46, Company Location: Length reduced
Table: 16322, Sub Order Comp. List Vend
Field: 46, Company Location: Length reduced
Table: 16415, Subcontractor Delivery Challan
Field: 4, Vendor Location: Length reduced
Field: 5, From Location: Length reduced
Table: 16511, Jnl. Bank Charges
Field: 4, Bank Charge: Length reduced
Table: 16527, Proposed Depr Method Header
Field: 1, Depreciation Book: Length reduced
Table: 16536, BOM Location
Field: 3, Location Code: Length reduced
Table: 16537, RG 23 D
Field: 9, Location Code: Length reduced
Field: 49, Transfer From Location Code: Length reduced
Field: 50, Transfer To Location Code: Length reduced
Table: 16546, Voucher No. Series
Field: 3, Posting No. Series: Length reduced
Table: 16547, Voucher Account
Field: 1, Location code: Length reduced
Table: 16550, Service Tax Opening
Field: 55, Location Code: Length reduced
Table: 16552, Gate Entry Header
Field: 3, No. Series: Length reduced
Field: 16, Posting No. Series: Length reduced
Table: 16554, Gate Entry Location Setup
Field: 2, Location Code: Length reduced
Field: 3, Posting No. Series: Length reduced
Table: 16555, Posted Gate Entry Header
Field: 3, No. Series: Length reduced
Table: 16567, Detailed PLA Entry
Field: 27, Location Code: Length reduced
Table: 16576, Service Tax Distribution
Field: 2, From Location: Length reduced
Field: 14, To Location: Length reduced
Table: 16577, Distribution Header
Field: 2, From Location: Length reduced
Table: 16578, Distribution Line
Field: 3, From Location: Length reduced
Field: 4, To Location: Length reduced
Table: 16579, Posted Distribution Header
Field: 2, From Location: Length reduced
Field: 10, Posting No. Series: Length reduced
Table: 16580, Posted Distribution Line
Field: 3, From Location: Length reduced
Field: 4, To Location: Length reduced
Table: 16587, Tax Journal Line
Field: 13747, Location Code: Length reduced
Table: 16597, Capitalize CWIP Header
Field: 8, Depreciation Book: Length reduced
Table: 16599, Posted Capitalize CWIP Header
Field: 8, Depreciation Book: Length reduced

Examples of code to migrate data:

DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Vendor”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Purchase Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Company Information”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Gen. Journal Line”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Purch. Rcpt. Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Purch. Inv. Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Purch. Cr. Memo Hdr.”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Purchase Header Archive”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Return Shipment Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”RG 23 A Part I”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”RG 23 A Part II”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”RG 23 C Part I”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”RG 23 C Part II”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”PLA Entry”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Posted Jnl. Bank Charges”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Tax Area Locations”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Sub Order Component List”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Sub Order Comp. List Vend”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Subcontractor Delivery Challan”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Jnl. Bank Charges”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Proposed Depr Method Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”BOM Location”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”RG 23 D”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Voucher No. Series”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Voucher Account”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Service Tax Opening”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Gate Entry Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Gate Entry Location Setup”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Posted Gate Entry Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Detailed PLA Entry”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Service Tax Distribution”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Distribution Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Distribution Line”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Posted Distribution Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Posted Distribution Line”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Tax Journal Line”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Capitalize CWIP Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
DataUpgradeMgt.SetTableSyncSetup(DATABASE::”Posted Capitalize CWIP Header”,[Upgrade Table Id],TableSynchSetup.Mode::[Mode]);
At line:1 char:1
+ Sync-NAVTenant -ServerInstance Demo_Upgrade_IN_71_90 -Mode Sync
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ CategoryInfo          : NotSpecified: (0:Int32) [Sync-NAVTenant], NavCommandException
+ FullyQualifiedErrorId : MicrosoftDynamicsNavServer$Demo_Upgrade_IN_71_90,Microsoft.Dynamics.Nav.Management.Cmdlets.SyncNavTenant

To solve this error and proceed to next step, if we run Sync-NAVTenant with ForceSync mode(there is no chance of data loss) then Table Synch Setup will not work for the table with schema changes (i.e the modified table) becasue through Sync mode system will not allowed to go ahead.

So to actually solve this error you need to restore NAV 2013 R2 database again and reduce field length for all listed fields in above error and run all the steps again.

But again new error(why system is not showing all the errors in one shot) and this is not the good news.

Sync-NAVTenant : When the TableSynchSetup.Mode::Copy mode is used in an upgrade codeunit for
synchronizing a table, the upgrade table can contain a subset of fields of the original table. The
fields and the primary key of the upgrade table must match those in the original table.
The following errors must be fixed:
Data in the fields ‘Sub. Comp. Location’ in the original table ‘Item’ cannot be saved in the upgrade
table ‘UPG Item’. Please make sure that listed fields are present in the upgrade table and they
match equivalent fields in the original table in terms of their design.
At line:1 char:1
+ Sync-NAVTenant -ServerInstance navtile2016 -Mode CheckOnly
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ CategoryInfo          : NotSpecified: (0:Int32) [Sync-NAVTenant], NavCommandException
+ FullyQualifiedErrorId : MicrosoftDynamicsNavServer$navtile2016,Microsoft.Dynamics.Nav.Management.Cmdlets.SyncNavTenant

So what’s next…

Again, you need to restore NAV 2013 R2 database again and reduce field length for ‘Sub. Comp. Location’ in table ‘Item’ and run all the steps again.

Hope this help you to avoid error and save time on your next upgrade.

Krishi Kalyan Cess feature for Microsoft Dynamics NAV 2016 – India

Dear All,

On the official Microsoft partnersource page NO separate objects are available to download for Krishi Kalyan Cess feature for Microsoft Dynamics NAV 2016 yet.

In last released Cumulative update 10 for Microsoft Dynamics NAV 2016 below listed Indian Localization Features were available.

  1. Additional Depreciation under Income Tax
  2. Krishi Kalyan Cess feature for Microsoft Dynamics NAV 2016
  3. New File Validation Utility (Version 5.0) for TDS

You can use Cumulative update 10(46621) for the new implementation, if you already started implementing on NAV 2016 IN Build 45778 then you can merge the above fixes from APPLICATION folder of Cumulative update 10 stuff.

Cumulative update 10: Download here

To download Cumulative Update requires valid partnersource/customersource login.

Download Krishi Kalyan Cess Feature for Microsoft Dynamics NAV for India

Dear All,

Belongs to my previous post, Now the download is available for Krishi Kalyan Cess Feature for Microsoft Dynamics NAV for India. Still there are no links for NAV 2016 available currently.

Please follow below download links:

2013 : https://mbs.microsoft.com/files/customer/NAV/Downloads/Taxupdate/IN7.0_TFS167311_KKC.exe

2013R2 : https://mbs.microsoft.com/files/customer/NAV/Downloads/Taxupdate/IN7.1_TFS167310%20-%20Krishi%20Kalyan%20Cess.exe