Branch-Wise GST in ERPNext: Automating GST Across Multiple GSTINs
If your company has different branches with separate GSTINs, this setup helps ERPNext automate GST calculation across them fetching the right taxes based on the branch and the party’s state. It’s an extension of the standard “automate Indian GST in ERPNext” approach.
The setup runs across five steps:
- Update your company’s branch-wise addresses.
- Configure state-wise GST accounts (optional).
- Item-wise GST setup.
- Classification of inter-state and intra-state taxes.
- Configuring invoice templates.
Step 1: Update your company’s branch-wise billing addresses
First, update your company’s branch-wise Address with the appropriate GSTIN, since it differs from branch to branch (if they’re in different states). Also make sure your Customer and Supplier addresses have GST State and Party GSTIN configured properly.
Step 2: Configure state-wise GST accounts (optional)
Go to the Chart of Accounts and create a state-wise set of GST accounts (CGST, SGST, and IGST). Then add these newly created accounts to the GST Accounts table in GST Settings, so they’re included in all GST reports.
Step 3: Item-wise GST setup
- Create an Item Tax Template for each set of rates, adding all the GST accounts created in the previous step.
- Define the rates.
This tells the system which GST accounts and tax rates to apply on invoices. Create different Item Tax Templates for different GST rates in the same way, then assign each template to its respective items from the Item master.
Step 4: Classification of inter-state and intra-state taxes
Create two Tax Categories for each branch in a different state. The Source State on each Tax Category corresponds to one of your company’s branches. Each state has two Tax Categories one for inter-state and one for intra-state (out-state) transactions.
For the ‘Out State’ Tax Categories, enable the ‘Is Inter State’ checkbox. Create the categories for the other states the same way (for example, an IN State and an OUT State category for Delhi).
Step 5: Configuring invoice templates
Finally, configure a set of two Sales Taxes and Charges Templates and two Purchase Taxes and Charges Templates for each Tax Category. In Sales Taxes and Charges Template, define a set of two templates per state:
- For the IN State template, choose the IN State Tax Category and the appropriate CGST & SGST accounts in the Account Head.
- For the OUT State template, choose the OUT State Tax Category and the appropriate IGST account in the Account Head.
NOTE
Enter your tax accounts in the Account Heads and leave the rest as ‘0’ the actual tax rates are fetched from the Item master. Repeat the same process for the Purchase Taxes and Charges Templates and for the other states.
Verifying the setup
Refresh your account once the setup is complete. To check everything works, create an Invoice or Order:
- Select a Customer or Supplier.
- Check the Company’s Address and reselect it to whichever branch you want to create the invoice/order from.
- Selecting the customer/supplier fetches the right template confirm the Taxes and Charges are fetched correctly.
Example 1 — same state: a Customer from Maharashtra with the Company’s Address also set to Maharashtra fetches the IN State template (CGST & SGST).
Example 2 — different states: a Customer from Maharashtra with the Company’s Address set to Delhi fetches the OUT State template (IGST).
TIP
The whole system hinges on the branch address you select on the transaction that, combined with the party’s GST state, decides whether the IN State or OUT State template is applied. So always set the correct company branch address on each invoice or order.
Related Topics
- GST Settings
- Item Tax Template
- Tax Category
- Sales Taxes and Charges Template
- Purchase Taxes and Charges Template
- Address
SUMMARY
To automate GST for a company with multiple branch GSTINs in ERPNext: update branch-wise company addresses with their GSTINs (and set GST State and Party GSTIN on customers/suppliers); optionally create state-wise CGST/SGST/IGST accounts and add them to GST Settings; create Item Tax Templates with rates and assign them to items; create inter-state and intra-state Tax Categories per branch (enabling ‘Is Inter State’ for out-state); and configure IN State (CGST & SGST) and OUT State (IGST) Sales and Purchase Taxes and Charges Templates, entering only the tax accounts and leaving rates at 0 so they’re fetched from the item. Selecting the customer and the company branch address then auto-fetches the correct template.
