|| GST Configuration in Oracle Fusion Application ||

Oracle Fusion APPS – India GST

Introduction:

Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST & IGST.

1. CGST: Collected by the Central Government on an intra-state sale

2. SGST: Collected by the State Government on an intra-state sale

3. IGST: Collected by the Central Government for inter-state sale

In most cases, the tax structure under the new regime will be as follows:

Transaction	New Regime
Sale within the State	CGST + SGST	Revenue will be shared equally between the Center and the State
Sale to another State	IGST	There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.

Illustration:

• Let us assume that a dealer in Telangana had sold the goods to a dealer in Karnataka worth Rs. 1,000. The tax rate is 5% comprising of only IGST.

In such case, the dealer has to charge Rs. 50 as IGST. This revenue will go to the Central Government.

• The same dealer sells goods to a consumer in Telangana worth Rs. 50,000. The GST rate on the good is 12%. This rate comprises of CGST at 6% and SGST at 6%.

The dealer has to collect Rs. 6,000 as Goods and Service Tax. Rs. 3,000 will go to the Central Government and Rs. 3,000 will go to the Telangana government as the sale is within the state.

Modules:

1. FINANCE

2. SALES & DISTRIBUTION

For More Detail Refer Oracle Metalink Document ID  "India Tax - GST Configuration & Payables Test Cases (Doc ID 2410153.1)"