fix: add zero rated category in transactions for correct reporting (#…

…1451)

* fix: add zero rated category in transactions for correct reporting

* fix: update patch

* test: test if gst treatment is set correctly

* test: change oversease settings

* fix: update e_invoice applicability and remove condition for non-gst items

(cherry picked from commit 97e610a)

india_compliance/gst_india/client_scripts/e_invoice_actions.js

@@ -222,8 +222,9 @@ function is_e_invoice_applicable(frm) {
         frm.doc.company_gstin != frm.doc.billing_address_gstin &&
         (frm.doc.place_of_supply === "96-Other Countries" ||
             frm.doc.billing_address_gstin) &&
-        frm.doc.items[0].gst_treatment != "Non-GST" &&
-        frm.doc.items.some(item => item.gst_treatment == "Taxable") &&
+        frm.doc.items.some(item =>
+            ["Taxable", "Zero-Rated"].includes(item.gst_treatment)
+        ) &&
         is_valid_e_invoice_applicability_date(frm)
     );
 }

india_compliance/gst_india/constants/custom_fields.py

@@ -321,8 +321,9 @@
             "fieldname": "gst_treatment",
             "label": "GST Treatment",
             "fieldtype": "Autocomplete",
-            "options": "Taxable\nNil-Rated\nExempted\nNon-GST",
+            "options": "Taxable\nZero-Rated\nNil-Rated\nExempted\nNon-GST",
             "fetch_from": "item_tax_template.gst_treatment",
+            "fetch_if_empty": 1,
             "insert_after": "item_tax_template",
             "print_hide": 1,
             "read_only": 1,

india_compliance/gst_india/overrides/test_transaction.py

@@ -3,8 +3,10 @@
 from parameterized import parameterized_class
 
 import frappe
-from frappe.tests.utils import FrappeTestCase
+from frappe.tests.utils import FrappeTestCase, change_settings
+from frappe.utils import today
 from erpnext.accounts.doctype.sales_invoice.sales_invoice import make_sales_return
+from erpnext.accounts.party import _get_party_details
 from erpnext.stock.doctype.delivery_note.delivery_note import make_sales_invoice
 
 from india_compliance.gst_india.constants import SALES_DOCTYPES
@@ -531,6 +533,44 @@ def test_gst_details_set_correctly(self):
             doc.items[0],
         )
 
+    @change_settings("GST Settings", {"enable_overseas_transactions": 1})
+    def test_gst_treatment_for_exports(self):
+        if not self.is_sales_doctype:
+            return
+
+        doc = create_transaction(
+            **self.transaction_details,
+            is_in_state=True,
+        )
+        self.assertEqual(doc.items[0].gst_treatment, "Taxable")
+
+        # Update Customer after it's already set
+        doc_details = {
+            **self.transaction_details,
+            "customer": "_Test Foreign Customer",
+            "party_name": "_Test Foreign Customer",
+        }
+        doc = create_transaction(**doc_details, do_not_submit=True)
+        self.assertEqual(doc.items[0].gst_treatment, "Zero-Rated")
+
+        party_field = "party_name" if self.doctype == "Quotation" else "customer"
+
+        customer = "_Test Registered Customer"
+        doc.update(
+            {
+                party_field: customer,
+                **_get_party_details(
+                    party=customer,
+                    company=doc.company,
+                    posting_date=today(),
+                    doctype=doc.doctype,
+                ),
+            }
+        )
+        doc.selling_price_list = "Standard Selling"
+        doc.save()
+        self.assertEqual(doc.items[0].gst_treatment, "Taxable")
+
     def test_purchase_with_different_place_of_supply(self):
         if self.is_sales_doctype:
             return

india_compliance/gst_india/overrides/transaction.py

@@ -1118,11 +1118,56 @@ def set_tax_amount_precisions(self, doctype):
 
 
 def set_gst_treatment_for_item(doc):
+    is_overseas = is_overseas_doc(doc)
+    is_sales_transaction = doc.doctype in SALES_DOCTYPES
+
+    default_gst_treatment = "Taxable"
+    gst_accounts = get_all_gst_accounts(doc.company)
+
+    for row in doc.taxes:
+        if row.charge_type in ("Actual", "On Item Quantity"):
+            continue
+
+        if row.account_head not in gst_accounts:
+            continue
+
+        if row.rate == 0:
+            default_gst_treatment = "Nil-Rated"
+
+        break
+
+    item_templates = set()
+    gst_treatments = set()
+    gst_treatment_map = {}
+
+    for item in doc.items:
+        item_templates.add(item.item_tax_template)
+        gst_treatments.add(item.gst_treatment)
+
+    if "Zero-Rated" in gst_treatments and not is_overseas:
+        # doc changed from overseas to local sale post validate
+        _gst_treatments = frappe.get_all(
+            "Item Tax Template",
+            filters={"name": ("in", item_templates)},
+            fields=["name", "gst_treatment"],
+        )
+        gst_treatment_map = {row.name: row.gst_treatment for row in _gst_treatments}
+
     for item in doc.items:
-        if item.gst_treatment:
+        if not item.gst_treatment or not item.item_tax_template:
+            item.gst_treatment = default_gst_treatment
+
+        if not is_sales_transaction:
             continue
 
-        item.gst_treatment = "Taxable"
+        if is_overseas:
+            # IGST sec 16(2) - ITC can be claimed for exempt supply
+            item.gst_treatment = "Zero-Rated"
+
+        elif item.gst_treatment == "Zero-Rated":
+            item.gst_treatment = (
+                gst_treatment_map.get(item.item_tax_template) or default_gst_treatment
+            )
 
 
 def set_reverse_charge_as_per_gst_settings(doc):

india_compliance/gst_india/report/e_invoice_summary/e_invoice_summary.py

@@ -202,7 +202,7 @@ def validate_sales_invoice_item():
         frappe.qb.from_(sales_invoice_item)
         .select(sales_invoice_item.parent)
         .where(sales_invoice_item.parenttype == "Sales Invoice")
-        .where(sales_invoice_item.gst_treatment == "Taxable")
+        .where(sales_invoice_item.gst_treatment.isin(["Taxable", "Zero-Rated"]))
         .distinct()
     )
 

india_compliance/gst_india/utils/e_invoice.py

@@ -43,10 +43,7 @@
     _cancel_e_waybill,
     log_and_process_e_waybill_generation,
 )
-from india_compliance.gst_india.utils.transaction_data import (
-    GSTTransactionData,
-    validate_non_gst_items,
-)
+from india_compliance.gst_india.utils.transaction_data import GSTTransactionData
 
 
 @frappe.whitelist()
@@ -356,9 +353,6 @@ def _throw(error):
         # e-Invoice not required for invoice wih all nill-rated/exempted items.
         return
 
-    if not validate_non_gst_items(doc, throw=throw):
-        return
-
     if not (doc.place_of_supply == "96-Other Countries" or doc.billing_address_gstin):
         return _throw(_("e-Invoice is not applicable for B2C invoices"))
 
@@ -403,7 +397,7 @@ def validate_taxable_item(doc, throw=True):
 
     """
     # Check if there is at least one taxable item in the document
-    if any(item.gst_treatment == "Taxable" for item in doc.items):
+    if any(item.gst_treatment in ("Taxable", "Zero-Rated") for item in doc.items):
         return True
 
     if not throw:
@@ -521,7 +515,7 @@ def set_item_list(self):
         self.item_list = []
 
         for item_details in self.get_all_item_details():
-            if item_details.get("gst_treatment") != "Taxable":
+            if item_details.get("gst_treatment") not in ("Taxable", "Zero-Rated"):
                 continue
 
             self.item_list.append(self.get_item_data(item_details))

india_compliance/gst_india/utils/transaction_data.py

@@ -71,7 +71,7 @@ def set_transaction_details(self):
         for row in self.doc.items:
             total += row.taxable_value
 
-            if row.gst_treatment == "Taxable":
+            if row.gst_treatment in ("Taxable", "Zero-Rated"):
                 total_taxable_value += row.taxable_value
 
         self.transaction_details.update(

india_compliance/patches/post_install/improve_item_tax_template.py

@@ -240,12 +240,12 @@ def remove_old_item_variant_settings():
 def update_gst_treatment_for_transactions():
     "Disclaimer: No specific way to differentate between nil and exempted. Hence all transactions are updated to nil"
 
-    for doctype in TRANSACTION_DOCTYPES:
+    for item_doctype in TRANSACTION_DOCTYPES:
         # GST Treatment is not required in Material Request Item
-        if doctype == "Material Request Item":
+        if item_doctype == "Material Request Item":
             continue
 
-        table = frappe.qb.DocType(doctype)
+        table = frappe.qb.DocType(item_doctype)
         query = frappe.qb.update(table)
 
         (
@@ -260,6 +260,26 @@ def update_gst_treatment_for_transactions():
             .run()
         )
 
+        doctype = item_doctype.replace(" Item", "")
+        if doctype not in SALES_DOCTYPES:
+            continue
+
+        doc = frappe.qb.DocType(doctype)
+
+        (
+            query.join(doc)
+            .on(doc.name == table.parent)
+            .set(table.gst_treatment, "Zero-Rated")
+            .where(
+                (doc.gst_category == "SEZ")
+                | (
+                    (doc.gst_category == "Overseas")
+                    & (doc.place_of_supply == "96-Other Countries")
+                )
+            )
+            .run()
+        )
+
     click.secho(
         "Nil Rated items are differentiated from Exempted for GST (configrable from Item Tax Template).",
         color="yellow",