Starting July 1, 2017, all businesses in India must be Goods and Services Tax (GST) compliant. 

To be ready for GST, you must do the following:

  1. Enable GST India
    To enable few settings that will help you be ready for GST using Zenoti, you must enable the GST India option.
    Learn how to enable GST India.
  2. Identify and update GST codes for your business
    With the introduction of GST, every business in India is required to declare the list of goods and services they offer using specific GST codes.
    Learn more about the GST codes that you need to identify and how to update Zenoti with the GST codes.
  3. Make changes to the receipt format
    The receipts that you issue to guests must contain mandatory information related to GST.
    Learn more about the mandatory information to be included in the receipts and how to enable GST India receipt format and make changes to the receipt header and footer.
  4. Create tax groups and assign to your business offerings
    You must either edit existing tax groups or create new tax groups and assign them to your business offerings (services, products, gift cards, packages, and memberships).
    Learn how to create a tax group and assign them to your product offerings.
  5. Review your services and products tax group association
    After you have created or edited a tax group, review if the services and products are assigned to the appropriate tax groups.
    Important: You must make changes to the tax groups only after GST comes into effect. If you make changes before GST, you will be charging your guests GST rates even before it comes into effect.
    Learn how to verify the tax group association.
  6. Review your gift cards and tax group association
    Decide if you will sell your gift cards with or without tax.
    If you decide to sell gift cards with tax, you must review the tax group association of your gift cards.
    Important: You must make changes to the tax groups only after GST comes into effect. If you make changes before GST, you will be charging your guests GST rates even before it comes into effect.
    Learn how to verify the tax group association.
  7. Review your packages and tax group association
    If you sell packages with services or products that fall in different tax rates, speak to your accountant and finalize the tax rate group to apply to the packages.
    Important: You must make changes to the tax groups only after GST comes into effect. If you make changes before GST, you will be charging your guests GST rates even before it comes into effect.
    Learn how to verify the tax group association.
  8. Review your memberships and tax group association
    If you sell memberships with services that fall in different tax rates, speak to your accountant and finalize the tax rate group to apply to the memberships.
    Important: You must make changes to the tax groups only after GST comes into effect. If you make changes before GST, you will be charging your guests GST rates even before it comes into effect.
    Learn how to verify the tax group association.
  9. Set up invoice sequencing
    Under GST, invoice sequencing is as follows:

    Tax invoice

    Tax Invoice is generated only after a service is provided or a product is sold and the amount is collected.

    Tax Receipt Voucher
    Sale of pre-paid offerings with tax (gift cards, packages, and memberships) is tracked as a Tax Receipt Voucher.

    Advance Receipt

    Sale of pre-paid offerings without tax (pre-paid cards, gift cards, packages, and memberships) is tracked as an Advance Receipt.

    Credit Note
    Refund of service or retail is tracked as a Credit Note.

    Tax Refund Voucher
    Refund of pre-paid offerings with tax is tracked as a Tax Refund Voucher.

    Refund Voucher
    Refund of pre-paid offerings without tax is tracked as a Refund Voucher.

    Learn more about the types of invoices generated for GST India.
  10. Re-evaluate cross center redemptions
    Note: This step is applicable if you run your business in multiple states across India or you have franchisees across India.

    If you sell a pre-paid offering (for example, a gift card) in one state, and the redemption takes place in another state, with GST, the tax impact is as follows:

    Redemption center
    Needs to pay tax on the service as per the redemption center state SGST.

    Original center
    Needs to get a refund of the amount collected as tax as per the original center's state SGST. The original center needs to get this refund from the government.

    What to re-evaluate?

    - Decide if you wish to continue with cross center redemptions.

    - If you wish to discontinue, disable cross center redemptions at the organization
      level.
    - If you decide to continue with cross center redemptions, you must talk to your
      accountant and decide how you will handle payment of taxes.

    Learn how to disable cross center redemptions.
  11. Revisit your inventory management
    GST requires you to make the following changes:

    Configure center-specific product and vendor assignment
    You must configure each center to have its own product-vendor association with pricing, discount, and tax information that is different from other centers.
    Learn how to assign products to vendors.

    Track PO’s using Goods Received Receipt (GRR) number
    You must configure your center to generate and assign a unique GRR number to each purchase order marked as delivered (both partial and full).
    Learn how to enable automatic generation of a GRR number.

    Update PO’s
    You must update purchase orders to include the Invoice#, Date of shipment, Date of delivery, and Address of delivery.
    Learn how to update the purchase orders.
  12. Generate new invoice numbers
    After you have configured Zenoti with GST details, you can start generating new invoice numbers for every sale starting July 1, 2017.
    Learn how to generate new invoice numbers.
    Important: You must start generating new invoice numbers only from the night of 30th June. Not before.
  13. Handle invoices with care
    GST mandates that all sequence numbers issued for documents be reported. Hence ensure that only designated employees have permissions to reopen, backdate, or void invoices.
  14. Pre and post GST transactions
    Review the list of GST India FAQ and understand how you must handle transactions pre and post-GST.
  15. Understand GST returns and know when and how to file them
    There are various types of tax returns in GST and you must be aware of when and how to file them. We strongly recommend that you speak to your accountant and be ready for filing returns when GST is introduced.

    We have added new columns to some of the reports to allow you to extract the required data to file your returns. Learn more about filing GST India returns.

Note: In case you need help configuring GST, contact us at GstHelp@zenoti.com.

Additional Resources

Important: All the resources here are being provided for informational purposes only. 

Zenoti bears no responsibility for the accuracy, legality, or the content of the external site or for that of subsequent links.  

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