GST - NAV 2016

What is GST ?

Goods and Services Tax(GST) is an Indirect Tax imposed on supply of goods and services or both. We need to remember that it is a destination or consumption based tax which is payable in the state in which the goods or services are consumed.

Components of GST :

1. Central GST (CGST) : It is imposed by Centre on Intra-State supply of goods and services. It means that those transactions which happen within state are liable for Central GST(CGST)

2. State GST (SGST) : It is imposed by State on Intra-State supply of goods and services. It means that those transactions which happen within state are liable for State GST(SGST)

3. Integrated GST(IGST) : It is imposed by Centre on Inter-State supply of goods and services. It means those transactions which happen out of state are liable for Integrated GST(IGST)

GST Registration Number : We have to remember that Registration number under GST is called Goods and Service Tax Payer Identification Number(GSTIN). It is alpha numeric number and state wise PAN based 15 digit number. The first two digits represent State Code.

Followings are the GST codes of States :




The GST Registration Number is required to be defined in the following tables:

1. Company Information
2. Vendor
3. Customer
4. Location

Please be noted that validation is provided in Navision so that user should update valid registration number. As mentioned above that first two digit of registration number contains state code and system checks the state code with the code defined in the table state. For example if Vendor exists in Delhi then the first two digits of Vendor's GST registration number should be of that state code i.e Delhi. As mentioned earlier that GST Registration Number is of 15 digit number.

Place of Supply : Place of supply plays a crucial role in GST. It is the place where services are supposed to be provided or goods are deemed to be sold as per GST law. Place of supply is crucial in determining whether the transaction is intrastate (within State) or interstate (Out of State).

Importance of Place of Supply : As mentioned above that place of supply plays a crucial role in determining the transaction as interstate or intrastate.

1. When location of supplier and place of supply are in the same State then "CGST" & "SGST" tax are applicable

2. When location of supplier and place of supply are in the different State then "IGST" tax is applicable.