TAX Setup in Fusion

TAX Setup in Fusion
Oracle Fusion Tax Implementation Series
2 Types of Taxes in Oracle Fusion

1.Transaction Tax.
2.Withholdion Tax.
Overview of Transaction Tax:

A tax, that you pay when you buy or sell something in any country that is called the Transaction
Tax. As per the Country rule regulation, if we are doing some businesses in that country either
doing some sell or purchase something, then we must pay some amount of tax to the country as
per the transaction amount and that is called the transaction tax. The amount of Transaction tax
on Bill Payments is usually a fixed percentage. Every country has setup their own rates for
Transaction Tax. Transaction Tax may vary country to country. Even for Country, there are
multiple Transaction tax rates/percentage as pee the Goods and service category.
Overview of WithHolding Tax:

A withholding tax , is an income tax to be paid to the government by the payer of the income
rather than by the recipient of the income. The tax is thus withheld or deducted from the income
due to the recipient. In most jurisdictions, withholding tax applies to employment income. Many
jurisdictions also require withholding tax on the payments of Suppliers Invoice Bill’s. In most
jurisdictions, there are additional withholding tax obligations if the recipient of the income is
resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies
to royalties, rent or even the sale of real estate.
Typically, the withholding tax is treated as a payment on account of the recipient's final tax
liability, when the withholding is made in advance. It may be refunded if it is determined, when
a tax return is filed, that the recipient's tax liability to the government which received the
withholding tax is less than the tax withheld, or additional tax may be due if it is determined that
the recipient's tax liability is more than the withholding tax. In some cases, the withholding tax is
treated as discharging the recipient's tax liability, and no tax return or additional tax is required.
Such withholding is known as final withholding.
The amount of withholding tax on income payments other than employment income is usually a
fixed percentage.
Oracle Fusion Tax Implementation
Complete Introduction of India GST

Transaction Tax
Unlike earlier when there were multiple taxes such as Central Excise, Service Tax and State VAT
etc., under GST, there is just one tax. GST is categorized into CGST, SGST or IGST depending
on whether the transaction is Intra-State or Inter-State.
To determine whether Central Goods & Services Tax (CGST), State Goods & Services Tax
(SGST) or Integrated Goods & Services Tax (IGST) will be applicable in a taxable transaction, it
is important to first know if the transaction is an Intra State or an Inter-State supply.
Chapter 3: Oracle Fusion Tax Implementation

Hi friends, We are in the Oracle Fusion Tax Implementation series. This is the Lesson number 3
of this series. Lets start and learn how to Implement the Taxation in Oracle Fusion.
GST Transaction Tax Types: -

 Intra-State supply of goods or services is when the location of the supplier and the
place of supply i.e., location of the buyer are in the same state. In Intra-State
transactions, a seller has to collect both CGST and SGST from the buyer. The
CGST gets deposited with Central Government and SGST gets deposited with State
Government.
 Inter-State supply of goods or services is when the location of the supplier and the
place of supply are in different states. Also, in cases of export or import of goods or
services or when the supply of goods or services is made to or by a SEZ unit, the
transaction is assumed to be Inter-State. In an Inter-State transaction, a seller must
collect IGST from the buyer.
Working Example for CGST and SGST:

· Let’s suppose Ravi is a dealer in Maharashtra who sold goods to Rakesh in

Maharashtra worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9%
and SGST rate of 9%. In such case, the dealer collects Rs. 1800 of which Rs. 900
will go to the Central Government and Rs. 900 will go to the
Maharashtra Government.

Working Example for IGST:

Consider that a businessman Rajesh from Maharashtra had sold goods to Anand from
Gujarat worth Rs. 1,00,000. The GST rate is 18% comprised of 18% IGST. In such case,
the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre.
India GST Tax Hierarchy: -
Chapter 4
Analyzing Your Tax Requirements

The following table represents key decisions that you must make when you analyze your tax
requirements and use Oracle Fusion Tax and other Oracle Fusion applications to implement a
solution

Question Consideration Impact to Tax Configuration
Who am I? You must first answer questions about

yourself and your relationship to the
legal and regulatory agencies that
enable you to operate in one or more
counties.
Where do I Identify the countries in which you Use Oracle Fusion Legal Entity Configurator
have operate. You will need to identify the to capture information about your legal
operations country where you are legally entities and legal registration.
and registered and the countries where you
businesses? have subsidiary companies that are
legally registered or have a legal
presence.
What taxes Analyze your tax environment for each Set up your tax regimes, taxes, and tax
am I subject of the countries in which you operate. jurisdictions according to the tax
to? requirements for each country.
What are the Consider the types of operations and Use the classifications feature to categorize
operations businesses in which you are engaged or classify your first parties under
and and the countries where you have legal various classification schemes.
businesses entities or reporting units. The type of
that I have? industries that you work under (for In analyzing your operations, you can
example, mining, telecommunications, associate the three main classifications of a
and pharmaceuticals), the kind of transaction to:
operations in which you engage (for
example, trading, manufacturing, and What you do: Use transaction fiscal
services), and the scale of your classifications.
operations (for example, your
turnover, company size, and growth) What products you buy or sell: Use product
may all impact your taxability. fiscal classifications.
Who your customers and suppliers are: Use

party fiscal classifications.
What do I Identify and classify the transactions Use Oracle Fusion Tax to create fiscal
do? that you enter into. For example, do classifications to classify and categorize
you primarily sell physical goods? If you your transactions in a common manner
do, do you manufacture them, or do across your organization. Use these fiscal
you buy and sell them without classifications in tax rules to obtain the
additional manufacturing? Do you sell appropriate tax result.
these goods in another state or
province? Do you export these goods?
Do you provide or use services?
What Determine the products that you buy Where Oracle Fusion Inventory is installed
products do I and sell as they impact the taxes to use the Inventory Catalog feature with
buy or sell? which you are subject. For example, Oracle Fusion Tax product fiscal
you must register for, and therefore classifications and intended use
collect and remit, service taxes only if functionality to classify the taxable nature
you provide taxable services. If you and intended use of the items. You can
manufacture goods for export, you then define tax rules using these
may not be subject to taxes on the classifications to obtain the appropriate tax
purchases that go into the result.
manufacture of such goods.
Define product category and noninventory-
based intended use fiscal classifications to
address classification needs for
transactions that do not
use inventory items.
Who are my Determine the types of customers and Use the party classifications feature to
customers suppliers with whom you do business, categorize or classify your customers and
and as they can impact the taxes to which suppliers. You can use these classifications
suppliers? you are subject or the tax status or tax in your tax rules to derive the appropriate
rate that applies. For example, let's say tax result.
that you are a company in the UK that
supplies physical goods to another You create a party fiscal classification by
country that is also a member of the assigning an Oracle Fusion Trading
European Union. The transaction rate Community Model class category to a party
for UK VAT is dependent on whether fiscal classification type code that you
the customer is registered for VAT in define. The Trading Community Model
the country to which the supply is class codes defined under the class
made. category become fiscal classification codes
belonging to the party
fiscal classification type. You can create a
hierarchy of party fiscal classification types
to reflect the levels of codes and subcodes
within the Trading Community
Model classification.
Implementation of Transaction Tax (GST) in Oracle

Fusion

India GST Transaction Tax Rates
Here below are the Rates of India GST Transaction Tax, which we do apply in Buy and Sell
transaction. In this Implementation we will configure these below tax rates in Oracle Fusion.
1. 5%
2. 12%
3. 18%
4. 28%
Role of Tax Classification codes in Oracle Fusion:
To Apply any type of Transaction Tax in oracle Fusion, we must apply in the form of
Tax Classification code. We cannot apply the tax rates directly in AP Invoice or AR Invoice
Transactions. We must create the Tax Classification code and under the Tax Classification code,
we do attach the tax rates which will be applied for Tax classifications. For in the Transactions,
we just apply the tax Classification code for the Tax and automatically tax rates do attach
automatically.
Defining Tax Classification codes for GST Transaction

Tax in Oracle Fusion
For All Local Purchases/Intra States in one State, we will be creating these below
Tax Classification codes. We can give any name as per our business Requirment and for easy
identification. These are tax classification codes will be show in the Transaction Tax Window for
apply.
Chapter-5
Intra States Tax Classification codes

1. Local 5%
2. Local 12%
3. Local 18%
4. Local 28%
Tax Classification Code ‘Local 5%’ Will Split internally in

two Tax Rates.
1. 2.5% SGST
2. 2.5% CGST
Tax Classification Code ‘Local 12%’ Will Split internally

in two Tax Rates
1. 6% SGST
2. 6% CGST
Tax Classification Code 18% Will Split internally in two

Tax Rates.
1. 9% SGST
2. 9% CGST
Tax Classification Code ‘Local 28% ‘ tax Will Split

internally in two Tax Rates.
1. 14% SGST
2. 14% CGST
Inter States Tax Classification Codes

For All Inter State/ Other States Purchases We are creating these below
Tax Classification codes. We can give any name as per our business Requirment and for easy
identification. These are tax classification codes will be show in the Transaction Tax Window for
apply.
1. Other State Purchase 5%
For Tax Classification code ‘Other State Purchase 5%’ Tax, we are creating only
single tax rate as the complete tax will be go Center Government.
1. 5%IGST
1. 12%IGST
1. 18%IGST
1. 28%IGST
As a Summary, we will create these below Tax

Classification code
1. Local 5%
2. Local 12%
3. Local 18%
4. Local 28%
Creating Tax Regime for GST

The tax regime provides these functions:
• Groups similar taxes together
• Designates the geography within which taxes apply
• Applies as defaults the settings and values that you define for each tax in the tax regime
• Defines for which taxes the configuration options apply and a specific subscription option
applies
• Provides a single registration for all taxes associated with the tax regime
• Defines the use of fiscal classifications as follows:
• Transaction fiscal classifications
• Product fiscal classifications
• Party fiscal classifications
The common tax regime setup is one tax regime per country per tax type, with the tax
requirements administered by a government tax authority for the entire country. There are also
cases where tax regimes are defined for standard geographical types or subdivisions within a
country, such as a state, province, country, or city. In these cases, you base the tax regime on
the Oracle Fusion Trading Community Model standard geography.
Step1: - Go to Setup and Maintenance Role and Click on the task Pane to go to Search Option
as below.

Step 2:- Here below , We are searching the Task ‘Manage Tax Regimes’ to create the New Tax
Regime for GST.
Step 3:-
Here below is the Tax Regime, where we need to create the Transaction Tax Regime for GST.
Please ensure, you have selected the Transaction Tax Option in the radio box.
Click on the ‘+’ icon to create the New Tax regime.

Chapter-7
Creating Tax Regime

Here we are creating the Tax Regime for GST. We need to enter the Information’s very carefully.
Tax Regime Code: INDIA GST1
Tax Regime Name; INDIA GST1
Start Date: - The Date from which you want to start the Taxes. I would recommend using 3 to 4
years back date.
Regime Level: Country (As we have the same Tax Rules across the country so we will select the
Country)
Country: India (We are implementing for India).
Tax Currency: INR.
Conversion Rate Type: Corporate( This is very Important, We have to select the

right Conversion Rate Type).
Allow Tax Rounding Override: Yes.

General Controls:
Allow override and entry of Inclusive Tax lines: Yes
Registration Number Controls and Defaults:
Validation Type: ORA_IN_GST
Validation Level: Warning

Configuration Options and Service Subscriptions

In Configuration options, we need to select the BU’s for which we need to enable this Tax
Regime. Only these BU’s will have the access for this Tax Regime.
Party Name: ABC CORP (We need to select the BU Name which will access these regime tax
rates).
Configuration for Taxes and Rules: Common configuration with party overrides.
Configuration for Product Exceptions: Party- specific configurations.
Effective Start Date: Same as the Start Date entered above in the Tax Regime
Chapter-8
Here below , We have created the Transaction Tax Regime for GST Tax as below:
Creating Transaction Taxes Under Tax Regime

Types of Taxes under GST Tax Regime
1.INDIA SGST.
2.INDIA CGST.
3.INDIA IGST
Step1: - Go to Manage Taxes task and will go to this below Page , as below. Click on the ‘+’ icon
to create the New Taxes under the GST regime 'India GST1'.
Navigation ==> Setup and Maintenance ==> Manage Taxes.

Creating CGST Tax in GST Regime
Tax Regime Code: INDIA GST1 (Need to select the Right Regime, we created in Last step)
Configuration Owner: ABC CORP (Need to Select the BU Name for which we want to use this
Tax).
TAX: INDIA CGST (TAX Name we need to enter, can enter any name but should be logical).
TAX: INDIA CGST (TAX Name we need to enter, can enter any name but should be logical).
Start Date: Same Date as we entered in the Tax Regime.
Tax Information:
Geography Type: Country
Tax Currency: INR
Tax Precision : 0 (We don’t want the Tax in Decimal).

Control and Defaults:
Tax Point Basis : Invoice
Tax Inclusion Method: Standard noninclusive
Allow override and Entry of inclusive tax lines : Yes
Allow tax rounding overrise: Yes
Allow entry of Manual Tax Lines: Yes
Tax Exceptions and Exemptions:

Allow Tax Exceptions : Yes
Allow Tax Exemptions : Yes

Chapter-9
TAX Rule Defaults for Taxes:

Place of Supply : Ship to , use bill to if ship to is null.
Tax Applicability : Not Applicable.
Tax registration : Bill-from party.

Creating SGST Tax in GST Regime
Tax).
TAX: INDIA SGST (TAX Name we need to enter, can enter any name but should be logical).
Tax Information:
Tax Currency: INR
Tax Precision: 0 (We don’t want the Tax in Decimal).

Allow tac rounding overrise: Yes

Allow entry of Manual Tax Lines : Yes


Tax registration : Bill-from party

Creating IGST Tax in GST Regime
Tax).
Tax Information:
Tax Currency: INR
Tax Precision: 0 (We don’t want the Tax in Decimal).


Allow tac rounding overrise: Yes
Allow entry of Manual Tax Lines : Yes



Tax registration : Bill-from party

Saturday, 19 December 2020

Hi friends, We are in the Oracle Fusion Tax Implementation series. This is the Lesson number 10 of this
series. Lets start and learn how to Implement the Taxation in Oracle Fusion.
All Three Types of Taxes Created under GST Transaction Tax

Regime
Creating Tax Jurisdictions for transaction Taxes under Tax

Regime
Here below, we need to Create Tax Jurisdictions for all three taxes.
We have created three GST taxes (CGST, SGST, IGST) for GST tax registrations. Now in this Step, we will
create Tax Jurisdictions for all three taxes.
Creating Tax Jurisdiction for "SGST" Tax under Tax Regime:
In this step , We are creating the Tax Jurisdictions all GST Taxes created in above steps and then attach
these Jurisdictions with all GST Taxes. This is the mandatory step to attach the Jurisdiction with Taxes.
Tax Jurisdiction Code: INDIA ( Any Name we can enter)
Tax Jurisdiction Name: INDIA( Any Name we can enter).

Tax Regime Code : INDIA GST1 TAX : INDIA SGST
Geography Type : COUNTRY
Geography Name: India
Start Date : Date should be same like the Start date in the Tax regime.

Validation Level: ORA_IN_GST
Validation Level : Error
Duplicate Validation Level: No Validation.
Tax Jurisdiction has been created for the SGST Tax.

Sunday, 20 December 2020

Creating Tax Jurisdiction for CGST Tax under Tax Regime:
Registration Number Controls and Default's:


Tax Jurisdiction has been created for the CGST Tax.
Creating Tax Jurisdiction for IGST Tax under Tax Regime:



Tax Jurisdiction has been created for the IGST Tax.
Monday, 21 December 2020

Hi friends, We are in the Oracle Fusion Tax Implementation series. This is the Lesson number 13 of this
series. Lets start and learn how to Implement the Taxation in Oracle Fusion.
Creating Tax Status for all GST Taxes under Tax Regime
Go to ‘Manage Tax Statuses’ task to create the Tax statuses for GST Taxes.
Click on the ‘+’ icon to create the
Creating Tax Status for CGST Tax under GST Tax Regime
Configuration Owner: ABC CORP
Tax: INDIA CGST
TAX STATUS CODE: STANDARD
TAX STATUS NAME: STANDARD
Start Date: Date should be same as Regime start Date.
Set as Default tax status: Yes
Default Start Date: Date should be same as Regime start Date.
Controls and Defaults:

Allow Tax Exceptions: Yes
Allow Tax Exemption: Yes
Allow tax rate override: Yes.
Tax Status has been created for CGST Tax.

Tuesday, 22 December 2020


Creating Tax Status for IGST Tax under GST Tax Regime
Tax: INDIA CGST

Allow tax rate override: Yes

Creating Tax Status for IGST Tax under GST Tax Regime
Creating Tax Status for SGST Tax under GST Tax Regime
Tax: INDIA CGST

Allow tax rate override: Yes.

Creating Tax Status for SGST Tax under GST Tax Regime
Now all Tax Status for CGST , SGST & IGST taxes have been created.
Wednesday, 23 December 2020

Creating Tax Rates for Transaction Taxes
under Tax Regime in Oracle Fusion
Here below we have create the three Tax Status for all thee GST Transaction Taxes.
Creating Tax Rates for Transaction Taxes under Tax
Regime
Go to ‘Manage Tax Rates’ task list and go to this task list as below.
Click on the ‘+’ icon to create the new Tax Rates for all Transaction Taxes.
Creating Tax Rates for Transaction Taxes under Tax Regime in Oracle Fusion
Creating ‘2.5% SGST’ Tax rate for SGST Tax

Tax: INDIA SGST
Tax Status Code: STANDARD (As we created in Previous Steps)
Tax Jurisdiction: INDIA (As we created in Previous Steps)
Tax Rate Code: 2.5% SGST
Tax Rate Type: Percentage.
Rate Periods:
Rate: 2.5
Effective Start Date: Date should be same as compared to Tax Regime.

Main Defaults:
Tax Inclusion Method: Standard noninclusive handle
Allow ad hoc tax Rate: Yes
Allow Tax Exemptions: Yes
Tax Point Basis: Invoice
Adjustment for Ad Hoc Tax Amounts: Taxable basis.

Wednesday, 23 December 2020

Creating Tax Rates for Transaction Taxes
under Tax Regime in Oracle Fusion
Here below we have create the three Tax Status for all thee GST Transaction Taxes.
Creating Tax Rates for Transaction Taxes under Tax
Regime
Go to ‘Manage Tax Rates’ task list and go to this task list as below.
Click on the ‘+’ icon to create the new Tax Rates for all Transaction Taxes.
Creating ‘2.5% SGST’ Tax rate for SGST Tax

Tax: INDIA SGST
Tax Rate Code: 2.5% SGST
Rate Periods:
Rate: 2.5

Main Defaults:

Friday, 25 December 2020
Creating ‘6% SGST’ Tax rate for SGST Tax
Tax: INDIA SGST
Tax Rate Code: 6% SGST
Rate Periods:
Rate: 6

Main Defaults:

Tax Accounts:
Click on the ‘+’ icon to create the Tax Accounts.
Select the Ledger: ABC CORP LEDGER
Business Unit: ABC CORP

Need to define the Interim Tax Account and Tax Liability Account. This is mandatory Setup
accounts.
Tax: INDIA SGST
Rate Periods:
Rate: 9

Main Defaults:
Tax Accounts:
accounts.
Tax: INDIA SGST
Rate Periods:
Rate: `14

Main Defaults:

Tax Accounts:

accounts.
Creating ‘2.5% CGST’ Tax rate for CGST Tax
Tax: INDIA CGST
Tax Rate Code: 2.5% CGST
Rate Periods:
Rate: 2.5
Main Defaults:

Tax Accounts:

accounts.
Creating ‘6% CGST’ Tax rate for CGST Tax
Tax: INDIA CGST
Tax Rate Code: 2.5% CGST
Rate Periods:
Rate: 6
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Main Defaults:

Tax Accounts:

accounts.
Tax: INDIA CGST

Tax Rate Code: 9% CGST
Rate Periods:
Rate: 9
Main Defaults:

Tax Accounts:

accounts.

Tax: INDIA CGST
Tax Rate Code: 14% CGST
Rate Periods:
Rate: 14

Main Defaults:
Tax Accounts:
accounts.
Creating ‘5% IGST’ Tax rate for IGST Tax
Tax: INDIA IGST
Tax Rate Code: 9% IGST
Rate Periods:
Rate: 5
Main Defaults:

Tax Accounts:

accounts.
Tax: INDIA IGST
Rate Periods:
Rate: 12

Main Defaults:

Tax Accounts:

accounts.
Tax: INDIA IGST
Rate Periods:
Rate: 18

Main Defaults:
Tax Accounts:
Need to define the Interim Tax Account and Tax Liability Account. This is mandatory Setup accounts.
Tax: INDIA IGST
Rate Periods:
Rate: 28

Main Defaults:

Tax Accounts:

accounts.
Creating Tax Classification codes for GST Transaction Taxes
Step 1:- Go to Setup and Maintenance ==> Manage Tax Lookup Codes
Step 2:- Here below is the Tax Classification Lookup to add new tax classifications.
ZX_INPUT_CLASSIFICATIONS

As a Summary, we will create these below Tax Classification code
1. Local 5%
2. Local 12%
3. Local 18%
4. Local 28%

Creating Tax Determining Factor Sets for each Tax Classification Code
Go to Manage Tax Determining Factor Sets to create the Tax Determining Factors for each

tax classification code.
Click on the ‘+’ icon to create the new
We will create the Tax Determining Factors for these below Tax Classification codes
1. Local 5%  Local 5% Deter Factor Set
5. Other State Purchase 5%  Other State Purc 5% Detr Fact

Creating Tax Determining Factors for Tax Classification

Code ‘Local 5%’
Tax Determining Factor Set Code: Local 5% Deter Factor Set
Tax Determining Factor Set Name: Local 5% Deter Factor Set
Determining Factor Class: ‘Transaction input Factor’
Determining Factor Name: ‘Tax Classification Code’
Creating Tax Determining Factors for Tax Classification Code ‘Local 12%’
Code ‘Local 18%’
Creating Tax Determining Factors for Tax Classification Code ‘Local 28%’

Code ‘Other State Purchase 5%’
Tax Determining Factor Set Code: Other State Purc 5% Detr Fact
Tax Determining Factor Set Name: Other State Purc 5% Detr Fact
Creating Tax Determining Factors for Tax Classification Code ‘Other State Purchase
12%’

Code ‘Other State Purchase 18%’
Creating Tax Conditions Sets for each Transaction Tax Classification Code
Go to ‘Manage Tax Condition Sets’ and Click on the ‘+’ icon to create the Tax Conditions Sets.
Click on the ‘+’ icon to create the Tax Conditions Sets.
Creating Tax Condition Set for Tax Classification Code ‘Local 5%’
Tax Determining Factor Set Code: LOCAL 5% DETER FACTOR SET
Tax Condition Set Name: Local 5% Condition Set
Tax Condition Set Code: Local 5% Condition Set
Tax Determining Factor Class: ‘Transaction input Factor’
Tax Determining Factor Name: ‘Tax Classification Code’
Value: Local 5%
Creating Tax Condition Set for Tax Classification Code

‘Local 12%’
Tax Condition Set Name: Local 12% DETER FACTOR SET
Tax Condition Set Code: Local 12% DETER FACTOR SET
Value: Local 12%
Creating Tax Conditions Sets for each Transa
Creating Tax Condition Set for Tax Classification Code ‘Local 18%’
Value: Local 18%

‘Local 28%’
Value: Local 28%
Creating Tax Condition Set for Tax Classification Code ‘Other State Purchase 5%’
Tax Condition Set Name: Other State Purc 5% Condition Set
Tax Condition Set Code: Other State Purc 5% Condition Set
Tax Determining Factor Set Code: OTHER STATE PURC 5% DETR FACT
Value: Other State Purchase 5%

‘Other State Purchase 12%’
Creating Tax Condition Set for Tax Classification Code ‘Other State Purchase 18%’

‘Other State Purchase 28%’
Chapter 34: Oracle Fusion Tax Implementatio
Creating Tax Rule for each Tax Classification Code under Each GST Taxes
Now We need to create the Tax Rule which will help to apply the taxes on transactions.
Go to Setup and Maintenance ==> Manage Tax Rule.
Creating Tax Rule for each Tax Classification Code under Each GST Taxes
Click on the ‘+’ icon to create the new Tax rules.

We have these below Tax Rates.
Local 5%
Local 12%
Local 18%
Local 28%
Tax Classification Code ‘Local 5%’ Will Split internally in two Tax Rates.
2.5% SGST
2.5% CGST
Tax Classification Code ‘Local 12%’ Will Split internally in two Tax Rates
6% SGST
6% CGST
Tax Classification Code 18% Will Split internally in two Tax Rates.
9% SGST
9% CGST
Tax Classification Code ‘Local 28% ‘tax Will Split internally in two Tax Rates.
14% SGST
14% CGST
As we can see above, each tax splits into two parts for SGST AND CGST, so we need to create
the two tax rules for each Tax rate/Tax Classification code.
For Local 5% Tax Classification code We will create below Tax Rules. One for SGST & One
for CGST.
1.Local 5% SGST Tax Rule
2.Local 5% CGST Tax Rule
For Local 12% Tax Classification code We will create below Tax Rules. One for SGST
& One for CGST.
& One for CGST.
& One for CGST.

Creating Tax Rule for Tax Classification Code ‘Local 5%’ under SGST Tax.
Rule Code: Local 5% SGST Tax Rule
Rule Code: Local 5% SGST Tax Rule
TAX: INDIA SGST
Tax Condition Set Code: LOCAL 5% CONDITION SET
Result: Applicable
New Condition Set Code :1

Tax Condition Set Code: LOCAL 5% CONDITION SET
Result: Applicable
New Condition Set Code :1
Click Save and Next.

Click on Submit.

TAX Setup in Fusion

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TAX Setup in Fusion

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TAX Setup in Fusion

Oracle Fusion Tax Implementation Series

2 Types of Taxes in Oracle Fusion

Overview of Transaction Tax:

Overview of WithHolding Tax:

Complete Introduction of India GST

Chapter 3: Oracle Fusion Tax Implementation

GST Transaction Tax Types: -

Chapter 3: Oracle Fusion Tax Implementation

Working Example for CGST and SGST:

Working Example for IGST:

India GST Tax Hierarchy: -

Analyzing Your Tax Requirements

Question Consideration Impact to Tax Configuration

Who am I? You must first answer questions about

Who your customers and suppliers are: Use

Implementation of Transaction Tax (GST) in Oracle

Chapter 4: Oracle Fusion Tax Implementation

Role of Tax Classification codes in Oracle Fusion:

Defining Tax Classification codes for GST Transaction

Intra States Tax Classification codes

Chapter 5: Oracle Fusion Tax Implementation

Tax Classification Code ‘Local 5%’ Will Split internally in

Tax Classification Code ‘Local 12%’ Will Split internally

Tax Classification Code 18% Will Split internally in two

Tax Classification Code ‘Local 28% ‘ tax Will Split

Inter States Tax Classification Codes

As a Summary, we will create these below Tax

Creating Tax Regime for GST

• Groups similar taxes together

• Designates the geography within which taxes apply

• Provides a single registration for all taxes associated with the tax regime

• Defines the use of fiscal classifications as follows:

• Product fiscal classifications

Chapter 6: Oracle Fusion Tax Implementation

Chapter 6: Oracle Fusion Tax Implementation

Click on the ‘+’ icon to create the New Tax regime.

Creating Tax Regime

Tax Regime Code: INDIA GST1

Tax Regime Name; INDIA GST1

Country: India (We are implementing for India).

Tax Currency: INR.

Conversion Rate Type: Corporate( This is very Important, We have to select the

Allow Tax Rounding Override: Yes.

Allow override and entry of Inclusive Tax lines: Yes

Registration Number Controls and Defaults:

Validation Type: ORA_IN_GST

Validation Level: Warning

Configuration Options and Service Subscriptions

Configuration for Taxes and Rules: Common configuration with party overrides.

Configuration for Product Exceptions: Party- specific configurations.

Creating Transaction Taxes Under Tax Regime

Navigation ==> Setup and Maintenance ==> Manage Taxes.

Creating CGST Tax in GST Regime

Start Date: Same Date as we entered in the Tax Regime.

Tax Precision : 0 (We don’t want the Tax in Decimal).

Allow override and Entry of inclusive tax lines : Yes

Allow tax rounding overrise: Yes

Allow entry of Manual Tax Lines: Yes

Tax Exceptions and Exemptions:

Allow Tax Exemptions : Yes

TAX Rule Defaults for Taxes:

Tax Applicability : Not Applicable.