For any Indian business running on Microsoft Dynamics 365 Business Central, tax compliance isn’t optional, it’s foundational. The Goods and Services Tax (GST) framework is complex and manually managing it is a high-risk gamble. This guide isn’t just a list of steps; it’s your definitive blueprint for configuring Business Central’s powerful Indian localization features to handle GST seamlessly. We will transform your ERP from a standard ledger into a fully automated, compliance-ready machine. Ready to banish tax-related data entry errors and audit anxiety? Let’s dive in and set up the system correctly, from defining your GSTINs to mastering the G/L posting matrix. Microsoft Dynamics 365 Business Central offers robust localization features for India, including comprehensive support for the Goods and Services Tax (GST). Properly configuring GST is essential for calculating, recording, and settling taxes on all your inward and outward supplies, ensuring compliance with Indian tax laws. This guide provides a straightforward, step-by-step process for setting up GST in Business Central, based on Microsoft’s best practices. Phase 1: Laying the Foundation (Tax Periods & Registration) The initial phase involves setting up the legal and temporal frameworks for your GST configuration. Step 1: Define Tax Accounting Periods (GST Calendar) The GST regime operates on a specific timeline, and you need to define this within Business Central. Step 2: Establish Your GST Registration Numbers (GSTINs) Your Goods and Service Tax Payer Identification Number (GSTIN) is critical for identifying your tax entity and the state you operate in. Phase 2: Core Configuration (G/L Accounts and Masters) This phase links the statutory requirements with your company’s general ledger structure. Step 3: Configure GST Groups and HSN/SAC Codes These setups classify your goods and services for accurate rate calculation. Step 4: Define the GST Posting Setup (The Accounting Link) This is perhaps the most crucial step, as it determines which General Ledger (G/L) accounts are used to post GST amounts. Step 5: Set Up GST Rates With your Groups and HSN/SAC codes defined, you now specify the actual tax percentages. Phase 3: Master Data Integration (Connecting the Dots) The final phase ensures that your business entities and locations are linked to the defined GST rules. Step 6: Update Company and Location Information Your company’s primary details must be GST-compliant. Step 7: Configure Customer and Vendor Master Data For every trading partner, you must define their GST status and registration details. To conclude, by following these seven steps, your Indian company’s Business Central environment will be fully configured to handle GST calculations automatically. This setup allows the system to determine the correct tax component (CGST, SGST, or IGST), apply the right rate, and post the amounts to the designated G/L accounts, simplifying your day-to-day transactions and preparing you for GST settlements and reporting. I Hope you found this blog useful, and if you would like to discuss anything, you can reach out to us at transform@cloudfronts.com.