GST Setup and Test Cases V1.0

Oracle Fusion APPS – India GST
GST Configuration & Payables

Test Cases
Doc ID: 2410153.1
Author: Srinivas Nimmalapudi
(Principal Software Engineer)
1 Doc ID: 2410153.1 Oracle

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 CGST + SGST Revenue will be shared equally between the Centre and the State
State
Sale to another IGST There will only be one type of tax (central) in case of inter-state
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

Step: 1
Configurations:
Enable India Localizations
Go to setup & maintenance
Select Financials in product drop down
Click on link 'Change Feature Opt In'
Click on Features

Select India as Regional Localization
Enterprise Structure:
Ledger : GST_LEDGER
Legal Entity : GST_SOUTH
Business Unit: GST_HYD_BU
BU Address: City: Hyderabad,
State: Telangana
Task->Manage Locations

Business Unit (Bill to Location):
Manage Geography Setup

Manage Geographies
Search
Country Name: India
Click on Validation Defined

Ensure Correct Map to Attribute for each Geography Type

For State Geography Type: Enable as per below screenshot
Save and Close
Run Schedule Process (ESS Job): Validate Addresses against Master Reference Geography Data
Parameter:
Location Table Name: HZ_LOCATIONS

Step: 2
Test Cases
• Sale of Non-Inventory Item within the State
• Sale of Non-Inventory Item to another State
Tax Configurations:-
Configure Legal Authorities
Task-> Manage Legal Authorities

Configure Tax Regime:
Task -> Manage Tax Regimes
Tax Regime Name: IND_GST_REGIME

Configure Taxes: CGST, SGST and IGST
Task -> Manage Taxes
Tax Name: IND_CGST
Note: Enable tax for transactions, enabled after the Tax Rate Tax Rules are defined
Tax Rule Defaults->
Tax Applicability->Not Applicable

Tax Name: IND_SGST
Tax Rule Defaults->

Tax Name: IND_IGST
Tax Rule Defaults->

Configure Manage Tax Jurisdictions
Task -> Manage Tax Jurisdictions
Tax Jurisdiction Name: IND_GST_JUD

Tax Jurisdiction Name: IND_SGST_JUD

Tax Jurisdiction Name: IND_IGST_JUD

Configure: Tax Statuses
Task -> Manage Tax Statuses
Tax Status Name: IND_CGST_STAT

Tax Status Name: IND_SGST_STAT

Tax Status Name: IND_IGST_STAT
Configure: Tax Rates and Tax Recovery Rates

Task -> Manage Tax Rates and Tax Recovery Rates
Select Rate Type: Tax Recovery Rate and Create Tax Recovery Rates

Define Tax Recovery Rate:
Tax Recovery Rate Code: IND_CGST_TAX_REC_2.5

Tax Recovery Rate Code: IND_SGST_TAX_REC_2.5

Tax Recovery Rate Code: IND_IGST_REC_5

Select Rate Type: Tax Rates and Create Tax Rates

Define Tax Rates
Tax Rate Code: IND_CGST_2.5
Select Default Recovery Rate: IND_CGST_TAX_REC_2.5 as shown in below screenshot
Define Tax Accounts Details for Tax Rate: IND_CGST_2.5

Tax Classification Code Set Assignments for Tax Rates IND_CGST_2.5
Enable the Order to Cash, Procure to Pay and Expenses
Enable as per Business Requirement
Define Tax Rates

Tax Rate Code: IND_SGST_2.5
Select Default Recovery Rate: IND_SGST_TAX_REC_2.5 as shown in below screenshot

Define Tax Accounts Details for Tax Rate: IND_SGST_2.5
Tax Classification Code Set Assignments for Tax Rates IND_SGST_2.5


Define Tax Rates
Tax Rate Code: IND_IGST_5
Select Default Recovery Rate: IND_IGST_REC_5 as shown in below screenshot
Define Tax Accounts Details for Tax Rate: IND_IGST_5

Tax Classification Code Set Assignments for Tax Rates IND_IGST_5

Configure: Product-Based Fiscal Classifications

Task -> Manage Product-Based Fiscal Classifications
Create Fiscal Classification code for “Product Category Fiscal Classification Codes”
This definition used to write Tax rules for Non-Inventory Products
Defined Fiscal Classification Code = Electronic

Configure: Tax Determining Factor Sets
Task-> Manage Tax Determining Factor Sets
Define Tax Determining Factor Set Name for CGST: IND_CGST_2.5_DET

Define Tax Determining Factor Set Name for SGST: IND_SGST_2.5_DET

Define Tax Determining Factor Set Name for IGST: IND_IGST_5P_DET
Configure: Tax Condition Sets

Task-> Manage Tax Condition Sets
Define Tax Condition Set Name for CGST: IND_CGST_2.5_CON
Select Tax Determining Factor Set Name: IND_CGST_2.5_DET

Define Tax Condition Set Name for SGST: IND_SGST_2.5_CON
Select Tax Determining Factor Set Name: IND_SGST_2.5_DET

Define Tax Condition Set Name for IGST: IND_IGST_5P_CON
Select Tax Determining Factor Set Name: IND_IGST_5P_DET

Configure: Tax Rules-Tax Applicability Rules
Task-> Manage Tax Rules
Select Tax Rate Type Tax Applicability Rules and Define Rules

Define Tax Applicability Rule IND_CGST_2.5_RULE to Determine CGST Tax
Bill From State Equal to determining factor to Ship To State
Product noninventory linked Product Category is Equal to EQUIPMENT
Bill from Party Registration Status is Equal to Registered

Define Tax Applicability Rule IND_SGST_2.5_RULE to Determine SGST Tax
Bill From State Equal to determining factor of Ship To State

Define Tax Applicability Rule IND_IGST_5_RULE to Determine IGST Tax
Ship From State Not Equal to determining factor of Ship To State
Product noninventory linked Product Category is Equal to Equipment

Select Tax Rate Type Tax Rules and Define Rules
Define Tax Rate Rule IND_CGST_2.5_TAX_RULE to Determine CGST Tax Rate IND_CGST_2.5 based on below
detremining factors

Define Tax Rate Rule IND_SGST_2.5_TAX_RULE_2.5 to Determine SGST Tax Rate IND_SGST_2.5 based on below
detremining factors

Define Tax Rate Rule IND_IGST__5_RATE_RULE to Determine IGST Tax Rate IND_IGST_5 based on below detremining
factors
Product noninventory linked Product Category is Equal to Equipment

Update GST Information in Supplier
Go To Home Page
Click on Procurement
Click on Suppliers
Task->Manage Supplier
Search Supplier
Go to Addresses Tab

Click on Edit and Go to Transaction Tax Tab
Click on Tax Registration Tab
Enter Tax Registration details

Step: 3
TEST CASE RESULTS
1. Tax Calculations on Invoice of Non-Inventory Item within the State
Information required while entering Invoice
Ship To
Bill From
Tax Product Category
Invoice: Inv-0024
Entered for BU: GST_HYD_BU
Bill From State is Telangana
Supplier Number 10003
Supplier Site: Hyderabad State: Telangana
Tax Product Category: Equipment
Bill From State is Equal to Ship To State

Bill From Part Status is Registered
Product Category is Equipment

Hence, IND_CGST_2.5 (2.5%)and IND_SGST_2.5 (2.5%) Tax rates are applicable
Tax Results
In this case, the Supplier has charged Rs. 25 as CGST and Rs 25 as SGST on Invoice amount Rs 1000

TEST CASE
2. Tax Calculations on Invoice of Non-Inventory Item to another State
Ship To
Ship From
Tax Product Category
Invoice: Inv-0025
Bill to State is Telangana
Supplier Site: Bengaluru State: Karnataka
Tax Product Category: Equipment
Ship From State is Not Equal to Ship To State

Product Category is Equipment
Hence, IND_IGST_5 (5%) Tax rate is applicable

Tax Results
In this case, the Supplier has charged Rs. 50 as IGST on Invoice amount Rs 1000

Step 4
Test Cases
• Sale of Inventory Item within the State
• Sale of Inventory Item to another State
CGST 6%, SGST 6% and IGST 12%
Tax Configurations:-
The configurations done in Step: 2 can be used for the below setups
1. Legal Authorities
2. Tax Regime
3. Taxes
4. Tax Jurisdictions
5. Tax Statuses
Configure: Tax Rates and Tax Recovery Rates

Select Rate Type: Tax Recovery Rate and Create Tax Recovery Rates

Tax Recovery Rate Code: IND_CGST_TAX_REC_6

Tax Recovery Rate Code: IND_SGST_TAX_REC_6

Tax Recovery Rate Code: IND_IGST_REC_12

Select Rate Type: Tax Rates and Create Tax Rates

Define Tax Rates
Tax Rate Code: IND_CGST_TAX_6
Select Default Recovery Rate: IND_CGST_TAX_REC_6 as shown in below screenshot
Define Tax Accounts Details for Tax Rate: IND_CGST_TAX_6

Tax Classification Code Set Assignments for Tax Rates IND_CGST_6
Define Tax Rates

Tax Rate Code: IND_SGST_TAX_6
Select Default Recovery Rate: IND_SGST_TAX_REC_6 as shown in below screenshot

Define Tax Accounts Details for Tax Rate: IND_SGST_TAX_6
Tax Classification Code Set Assignments for Tax Rates IND_SGST_TAX_6


Define Tax Rates
Tax Rate Code: IND_IGST_12
Select Default Recovery Rate: IND_IGST_REC_12 as shown in below screenshot
Define Tax Accounts Details for Tax Rate: IND_IGST_12

Tax Classification Code Set Assignments for Tax Rates IND_IGST_12
Configure: Define Functional Area For Catalog

Task -> Manage Functional Area Catalog

Edit Inventory Functional Area and Add Categories
Task -> Manage Product-Based Fiscal Classifications

Create Fiscal Classification code for “Product Fiscal Classification Types”
This definition used to write Tax rules for Inventory Category
Defined Type Code = GST_RATE for the Inventory Catalog (Inventory Category Set)
GST_CATALOG defined in Inventory under which Inventory Category defined

Configure: Tax Determining Factor Sets
Define Tax Determining Factor Set Name for CGST: IND_CGST_DET_6P

Define Tax Determining Factor Set Name for SGST: IND_SGST_DET_6P

Define Tax Determining Factor Set Name for IGST: IND_SGST_DET_12P
Configure: Tax Condition Sets

Define Tax Condition Set Name for CGST: IND_CGST_CON_6P
Select Tax Determining Factor Set Name: IND_CGST_DET_6P

Define Tax Condition Set Name for SGST: IND_SGST_CON_6P
Select Tax Determining Factor Set Name: IND_SGST_DET_6P

Define Tax Condition Set Name for SGST: IND_IGST_CON_12P
Select Tax Determining Factor Set Name: IND_IGST_DET_12P

Configure: Tax Rules-Tax Applicability Rules
Select Tax Rate Type Tax Applicability Rules and Define Rules
Define Tax Applicability Rule IND_CGST_RULE_6 to Determine CGST Tax

Bill From State Equal to determining factor to Bill To State
Product inventory linked Inventory Category is Equal to Electronic

Define Tax Applicability Rule IND_SGST_RULE_6 to Determine SGST Tax
Bill From State Equal to determining factor to Bill To State

Define Tax Applicability Rule IND_IGST_RULE_12 to Determine IGST Tax
Ship From State Equal to determining factor to Ship To State

Select Tax Rate Type Tax Rules and Define Rules

Define Tax Rate Rule IND_CGST_RATE_RULE_6 to Determine CGST Tax Rate IND_CGST_TAX_6 based on below
detremining factors
Bill From State Equal to determining factor of Bill To State
Product inventory linked Product Category is Equal to Electronic

Define Tax Rate Rule IND_SGST_RATE_RULE_6 to Determine SGST Tax Rate IND_SGST_TAX_6 based on below
detremining factors
Bill From State Equal to determining factor of Bill To State

Define Tax Rate Rule IND_IGST_RATE_RULE_12 to Determine IGST Tax Rate IND_IGST_TAX_12 based on below
detremining factors

Create Item with Category: Electronic
Step: 5
TEST CASE RESULTS
1. Tax Calculations on Invoice of Inventory Item within the State (CGST & SGST)
Bill To
Bill From
Inventory Category
Enter PO and Approve

Purchase Order: 5
Item Category: Electronic
Invoice: Inv-0015 matched with PO Number 5

Category: Electronic
Bill From State is Equal to Bill To State

Inventory Category is Electronic
Hence, IND_CGST_6 (6%) and IND_SGST_6 (6%) are applicable

Tax Results
In this case, the Supplier has charged Rs. 3000 as CGST and Rs 3000 as SGST on Invoice amount Rs 1000
2. Tax Calculations on Invoice of Inventory Item Ship from other State (IGST)
Bill To
Bill From
Inventory Category
Enter PO and Approve

Purchase Order: 6
Item Category: Electronic
Invoice: Inv-0016 matched with PO Number 5

Category: Electronic
Ship From State is Not Equal to Ship To State

Product Category is Electronic

Hence, IND_IGST_12 (12%) Tax rate is applicable
Tax Results
In this case, the Supplier has charged Rs. 6000 as IGST on Invoice amount Rs 50000

GST Setup and Test Cases V1.0

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GST Setup and Test Cases V1.0

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Oracle Fusion APPS – India GST

GST Configuration & Payables

1 Doc ID: 2410153.1 Oracle

Transaction New Regime

2 Doc ID: 2410153.1 Oracle

3 Doc ID: 2410153.1 Oracle

4 Doc ID: 2410153.1 Oracle

Business Unit (Bill to Location):

Manage Geography Setup

5 Doc ID: 2410153.1 Oracle

Ensure Correct Map to Attribute for each Geography Type

6 Doc ID: 2410153.1 Oracle

7 Doc ID: 2410153.1 Oracle

8 Doc ID: 2410153.1 Oracle

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Task -> Manage Tax Jurisdictions

Task -> Manage Tax Jurisdictions

12 Doc ID: 2410153.1 Oracle

Task -> Manage Tax Statuses

13 Doc ID: 2410153.1 Oracle

Configure: Tax Rates and Tax Recovery Rates

14 Doc ID: 2410153.1 Oracle

Define Tax Recovery Rate:

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Task -> Manage Tax Rates and Tax Recovery Rates

16 Doc ID: 2410153.1 Oracle

Define Tax Accounts Details for Tax Rate: IND_CGST_2.5

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Define Tax Rates

18 Doc ID: 2410153.1 Oracle

Tax Classification Code Set Assignments for Tax Rates IND_SGST_2.5

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Define Tax Accounts Details for Tax Rate: IND_IGST_5

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Tax Classification Code Set Assignments for Tax Rates IND_IGST_5

Configure: Product-Based Fiscal Classifications

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Task-> Manage Tax Determining Factor Sets

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Configure: Tax Condition Sets

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Task-> Manage Tax Condition Sets

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Enter Tax Registration details

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Bill From State is Equal to Ship To State

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Hence, IND_CGST_2.5 (2.5%)and IND_SGST_2.5 (2.5%) Tax rates are applicable

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Ship From State is Not Equal to Ship To State

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Configure: Tax Rates and Tax Recovery Rates