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The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Businesses using Microsoft Dynamics 365 Finance C

Operations (FCO) must configure GST correctly to ensure compliance with Indian tax regulations. Proper setup enables accurate tax calculations, reporting, and seamless filing with the government.

This article provides a step-by-step guide on configuring Indian GST in Dynamics 365, covering tax components, GST groups, registration, and invoice posting. We will also walk through the end-to-end process until GST settlement, including tax calculation, reporting, and payment submission. Understanding these configurations and workflows ensures

businesses stay compliant while streamlining their tax operations.

 

 

GST Configurations Sales Tax Authority Navigation

Tax > Indirect tax > Sales tax > Sales tax authorities

  1. Update the authority
  2. Update the name for identification
  3. Put some code for identify the tax authority
  4. Update the vendor account for GST taxation here (separate vendor account for TDS and GST are preferable).

Sales Tax Settlement Period

 

Navigation

Tax > Indirect tax > Sales tax > Sales tax settlement periods

  1. Update the settlement period and description over here
  2. Map the tax authority here which is already created before
  3. Update the period interval unit
  4. Also update the period interval duration here
  5. Click new period interval to create next period (Here period interval updated as month and interval duration provided as So, the next month was created over there).

Business Verticals Navigation

Tax > Setup > Sales tax > Business verticals

Updating the business verticals, description and entity code by clicking new Enterprise Tax Registration Numbers

Navigation

Tax > Setup > Sales tax > Enterprise tax registration numbers

  1. Select tax as” Indirect”
  2. Choose tax type as “GST”

 

  1. Select the registration number type as “Company”
  2. Update the registration number (GST) here
  3. Provide a description for identification
  4. Map the business verticals

 

 

Vendors and customer GST numbers also updated in the same form.

Update Vendors GSTIN by selecting “Registration Number Type” as Vendors

Number Type” as Customers

Updating Tax Registration numbers against Company, Vendors and Customers

 

 

  1. Company Navigation

Organization administration > Organizations > Legal entities

Click on “Advanced”

  1. Update the name or description
  2. Set as “Primary” If needed
  3. Choose the GSTIN from the dropdown list
  4. Select the number sequence group

 

  1. Vendors

Update the Tax registration number same as mentioned above.

Vendor master > Address > Select advanced > Tax information > Add

(Vendor GSTIN available under the dropdown list which already created under the enterprise tax registration number)

  1. Customers

Update the Tax registration number same as mentioned above.

Customer master > Address > Select advanced > Tax information > Add

(Customer GSTIN available under the dropdown list which already created under the enterprise tax registration number)

 

 

Maintain Setoff Hierarchy Profiles Navigation

Tax > Setup > Sales tax > Maintain setoff hierarchy profiles Select the effective date and sales tax hierarchy

Click ok

  1. Select structure
  2. Enable the “use a sales tax hierarchy for tax setoff”
  3. Select the line under the versions
  4. Click view

Select the Setoff rules for sales tax hierarchies After setting it should be synchronized

  1. Nodes can be created here to set “setoff rules”
  2. Separate nodes can be created to define the set off order for “IGST, CGST, SGST based on the priority

New nodes can be created by click new HSN Codes and SAC

Navigation

Tax > Setup > Sales tax > HSN codes/ Service accounting codes

Create HSN codes for items based on the requirements

Create service accounting code for service items as per the requirements Update the HSN code/SAC for items

Navigation

Product information management > Products > Released Products

Under the general tab there are fields to update the HSN/SAC

 

Configure the Details Which Already Created Navigation

Tax > Setup > Tax configuration > Tax setup

Click on “Setup”

The Configured version is already updated here.

Select the “GST” node and select the “Tax type mapping”

Update the tax type as “GST”

Add GSIN in the condition under the “Accounting” and update the posting profiles under the values for 1. CGST, 2. SGST ,3. IGST, and 4. CESS

Update the currency as “INR” and Period under the “reporting” for CGST, SGST, IGST

And update the GST rate based on the HSN/SAC code. The below screen will appear for reference.

In case of reverse charge mechanism, Update the details under the condition for CGST, SGST, IGST