Microsoft Dynamics 365

GST Localisation for Business Central

Indian GST configuration tested against what the returns actually require.

Usually 2–4 weeks, depending on the number of registrations and the range of transactions

Indian GST is not a single tax rate applied to a sale. The tax that applies depends on the place of supply, the nature of the goods or services, the registration status of the customer, and whether the transaction falls under reverse charge.

Business Central can handle all of this, but only if it is configured for the transactions you actually carry out. Configuration that looks correct in isolation often produces data that cannot be filed from.

Configured against the return, not the manual

The test of a GST configuration is whether the reporting it produces can be filed. That means the data must carry the classifications the returns require, reconcile to the books, and match what the portal expects for e-invoicing and e-way bills.

Because we also handle GST compliance, we test the configuration by preparing a return from it — which surfaces gaps that testing against the documentation alone does not.

The areas that commonly need attention

Place of supply for services, where the rules differ from goods. Reverse charge on specified supplies and on purchases from unregistered persons. Multiple registrations, where each state is a separate GSTIN with its own returns. Credit eligibility, where blocked credits must be identified at the point of posting rather than at the point of filing.

Each of these is straightforward once set up. Each causes persistent reconciliation problems when it is not.

Who needs this

  • Businesses implementing Business Central in India
  • Businesses whose existing setup produces data that cannot be filed from
  • Businesses with registrations in more than one state
  • Businesses adding e-invoicing or e-way bill requirements

Eligibility and conditions

  • A running or in-progress Business Central environment
  • Active GST registrations for the locations concerned
  • Details of the transaction types the business carries out

What this covers

  • Tax structure setup

    Rates, groups and posting configured for your transactions.

  • Place of supply

    Rules configured for both goods and services.

  • Multi-registration support

    Each GSTIN configured with its own reporting.

  • E-invoicing and e-way bill

    Connection to the portals configured and tested.

  • Return-ready reporting

    Output tested by preparing an actual return from it.

  • Reconciliation setup

    Reports that tie the system data to the returns.

How the process works

  1. Map transactions

    Every type of supply and purchase the business makes.

  2. Configure

    Tax structures, place of supply and posting setup.

  3. Connect portals

    E-invoicing and e-way bill configuration.

  4. Test against a return

    A live period prepared from the system output.

  5. Document and train

    Setup documented and the team trained.

Documents required

  • GST registration details

    GSTIN for every registered location.

  • Transaction types

    The supplies and purchases the business makes.

  • Item and service master

    With HSN or SAC classification.

  • Customer and vendor master

    With GSTIN and state details.

  • Recent returns

    GSTR-1 and GSTR-3B, for testing the configuration against.

  • E-invoice credentials

    Where e-invoicing applies.

The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.

Frequently asked questions

Can Business Central handle Indian GST requirements?

Yes, provided it is configured for the transactions you actually carry out — place of supply, reverse charge, multiple state registrations and credit eligibility all need to be set up correctly for the output to be usable for filing.

Because we handle GST compliance as well, we test a configuration by preparing an actual return from it, which surfaces gaps that testing against documentation alone does not.

GST setup producing data you cannot file from?

Tell us what is not reconciling and we will identify where the configuration needs to change.