GST tax calculation fails for inter-state transactions in India localization pack with CloudSuite 2022

ERP Infor CloudSuite
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1

Our GST tax engine in CloudSuite 2022 is calculating incorrect tax amounts for inter-state B2B transactions. Specifically, IGST is being calculated at 18% when it should be splitting into CGST 9% + SGST 9% for certain transaction types. The tax determination matrix seems configured correctly for intra-state transactions, but inter-state logic is failing. We’ve verified the India localization pack is installed (version 2022.04), but the transaction type classification isn’t triggering the right tax rules.

<TaxResult>
  <TaxType>IGST</TaxType>
  <Rate>18.00</Rate>
  <Amount>9000.00</Amount>
  <!-- Expected: CGST + SGST split -->
</TaxResult>

This is blocking our invoice compliance and we’re getting GST return filing errors. Anyone resolved similar GST calculation issues?

2

This is almost always caused by inconsistent state code formats in your address data. The tax determination engine does a strict string match on state codes. Check if some records have ‘MH’, others have ‘Maharashtra’, or maybe there are leading/trailing spaces. Also verify that your GST rule configuration is using the correct address fields - some implementations mistakenly use billing address instead of shipping address for tax determination, which causes exactly this symptom.

3

Wait, I think you have the GST logic backwards. Inter-state transactions should use IGST (Integrated GST), while intra-state transactions use CGST + SGST. Are you saying the system is applying IGST when both parties are in the same state? That would indicate your ship-to and ship-from address validation isn’t working correctly. Check the state codes in your customer and legal entity master data.

4

I encountered this exact issue last quarter. In our case, the problem was in the transaction type classification setup. We had certain document types configured as ‘export’ transactions which automatically triggered IGST regardless of state codes. Check your transaction type definitions in the tax configuration module and make sure B2B intra-state sales are classified correctly. Also verify your HSN code mappings are complete.