feat: allow users to override taxable values and items under gst

india_compliance/gst_india/constants/__init__.py

@@ -61,6 +61,7 @@
 )
 
 TAXABLE_GST_TREATMENTS = ("Taxable", "Zero-Rated")
+IGNORED_GST_TREATMENT = "Ignored for GST"
 
 
 STATE_NUMBERS = {

india_compliance/gst_india/constants/custom_fields.py

@@ -812,7 +812,7 @@
             "fieldname": "gst_treatment",
             "label": "GST Treatment",
             "fieldtype": "Autocomplete",
-            "options": "Taxable\nZero-Rated\nNil-Rated\nExempted\nNon-GST",
+            "options": "Taxable\nZero-Rated\nNil-Rated\nExempted\nNon-GST\nIgnored for GST",
             "fetch_from": "item_tax_template.gst_treatment",
             "fetch_if_empty": 1,
             "insert_after": "item_tax_template",
@@ -1293,7 +1293,7 @@
             "label": "GST Treatment",
             "fieldtype": "Autocomplete",
             "default": "Taxable",
-            "options": "Taxable\nNil-Rated\nExempted\nNon-GST",
+            "options": "Taxable\nNil-Rated\nExempted\nNon-GST\nIgnored for GST",
             "insert_after": "column_break_3",
             "translatable": 0,
         },

india_compliance/gst_india/doctype/gstr_3b_report/test_gstr_3b_report.py

@@ -227,6 +227,40 @@ def test_itc_reversal_journal_entry_is_included_in_gstr_3b(self):
         self.assertEqual(output["itc_elg"]["itc_net"]["camt"], -9.0)
         self.assertEqual(output["itc_elg"]["itc_net"]["samt"], -9.0)
 
+    def test_ignored_items_excluded_from_itc(self):
+        """
+        Test that Purchase Invoice items marked as 'Ignored for GST' are excluded
+        from GSTR-3B ITC calculations.
+        """
+        # Create a purchase invoice with mixed items
+        pi = create_purchase_invoice(
+            is_in_state=True,
+            do_not_submit=True,
+            items=[
+                {
+                    "item_code": "_Test Trading Goods 1",
+                    "qty": 1.0,
+                    "rate": 100.0,
+                },
+                {
+                    "item_code": "_Test Trading Goods 1",
+                    "qty": 1.0,
+                    "rate": 200.0,
+                },
+            ],
+        )
+
+        # Mark second item as ignored for GST
+        pi.items[1].gst_treatment = "Ignored for GST"
+        pi.save()
+        pi.submit()
+
+        # The ignored item should not contribute to ITC
+        # Only first item's GST (9 CGST + 9 SGST) should be eligible
+        self.assertEqual(pi.items[0].cgst_amount, 9.0)
+        self.assertEqual(pi.items[1].cgst_amount, 0.0)  # Ignored item
+        self.assertEqual(pi.items[1].taxable_value, 0.0)  # Ignored item
+
 
 def create_sales_invoices():
     create_sales_invoice(is_in_state=True)

india_compliance/gst_india/overrides/test_transaction.py

@@ -170,6 +170,125 @@ def test_non_taxable_items_with_tax(self):
             doc,
         )
 
+    def test_ignored_gst_treatment_resets_values(self):
+        """
+        Test that items marked as 'Ignored for GST' have their taxable value,
+        GST rates, and amounts reset to zero.
+        """
+        doc = create_transaction(
+            **self.transaction_details,
+            is_in_state=True,
+            do_not_submit=True,
+        )
+
+        # Mark item as ignored for GST
+        doc.items[0].gst_treatment = "Ignored for GST"
+        doc.save()
+
+        # All GST values should be reset to zero
+        self.assertDocumentEqual(
+            {
+                "gst_treatment": "Ignored for GST",
+                "taxable_value": 0,
+                "igst_rate": 0,
+                "cgst_rate": 0,
+                "sgst_rate": 0,
+                "igst_amount": 0,
+                "cgst_amount": 0,
+                "sgst_amount": 0,
+            },
+            doc.items[0],
+        )
+
+    def test_ignored_gst_treatment_skips_validation(self):
+        """
+        Test that items with 'Ignored for GST' treatment do not trigger
+        the validation error for non-taxable items with tax.
+        """
+        doc = create_transaction(
+            **self.transaction_details,
+            is_in_state=True,
+            item_tax_template="GST 28% - _TIRC",
+            do_not_submit=True,
+        )
+
+        # Mark item as ignored for GST - should not throw validation error
+        doc.items[0].gst_treatment = "Ignored for GST"
+
+        # This should NOT raise an error unlike Nil-Rated
+        validate_item_tax_template(doc)
+
+    def test_transaction_with_mixed_taxable_and_ignored_items(self):
+        """
+        Test workflow with both taxable items and ignored items in the same transaction.
+        """
+        doc = create_transaction(
+            **self.transaction_details,
+            is_in_state=True,
+            do_not_save=True,
+        )
+
+        # Add a second item
+        append_item(doc, frappe._dict(rate=200))
+        doc.insert()
+
+        # Mark the second item as ignored and save again
+        doc.items[1].gst_treatment = "Ignored for GST"
+        doc.save()
+
+        # First item should have normal GST calculation
+        self.assertEqual(doc.items[0].gst_treatment, "Taxable")
+        self.assertEqual(doc.items[0].taxable_value, 100)
+        self.assertEqual(doc.items[0].cgst_rate, 9)
+        self.assertEqual(doc.items[0].sgst_rate, 9)
+
+        # Second item should have all values as zero
+        self.assertDocumentEqual(
+            {
+                "gst_treatment": "Ignored for GST",
+                "taxable_value": 0,
+                "cgst_rate": 0,
+                "sgst_rate": 0,
+                "cgst_amount": 0,
+                "sgst_amount": 0,
+            },
+            doc.items[1],
+        )
+
+    def test_taxable_value_hook(self):
+        """
+        Test that the india_compliance_get_item_taxable_value hook allows
+        custom apps to override taxable value calculation.
+        """
+        custom_taxable_value = 50.0
+
+        def custom_hook(doc, item):
+            # Override taxable value for testing
+            return custom_taxable_value
+
+        # Register the hook temporarily
+        frappe.get_hooks.clear()
+
+        # Add custom hook
+        frappe.local.hooks = frappe._dict()
+        frappe.local.hooks["india_compliance_get_item_taxable_value"] = [custom_hook]
+
+        try:
+            doc = create_transaction(
+                **self.transaction_details,
+                is_in_state=True,
+                do_not_submit=True,
+            )
+            doc.save()
+
+            # The hook should have overridden the taxable value
+            self.assertEqual(doc.items[0].taxable_value, custom_taxable_value)
+        finally:
+            # Restore original hooks
+            if hasattr(frappe.local, "hooks"):
+                del frappe.local.hooks
+            frappe.get_hooks.clear()
+
     def test_validate_item_tax_template(self):
         item_tax_template = frappe.get_doc("Item Tax Template", "GST 28% - _TIRC")
         tax_accounts = item_tax_template.get("taxes")

india_compliance/gst_india/overrides/transaction.py

@@ -12,6 +12,7 @@
     GST_RCM_TAX_TYPES,
     GST_REFUND_TAX_TYPES,
     GST_TAX_TYPES,
+    IGNORED_GST_TREATMENT,
     SALES_DOCTYPES,
     STATE_NUMBERS,
     SUBCONTRACTING_DOCTYPES,
@@ -134,6 +135,14 @@ def update_taxable_values(doc):
     if apportioned_charges != total_charges:
         item.taxable_value += total_charges - apportioned_charges
 
+    # Allow custom apps to override taxable value calculation
+    for item in doc.items:
+        for method in frappe.get_hooks("india_compliance_get_item_taxable_value"):
+            custom_value = frappe.call(method, doc=doc, item=item)
+            if custom_value is not None:
+                item.taxable_value = custom_value
+                break
+
 
 def validate_item_wise_tax_detail(doc):
     if doc.doctype not in DOCTYPES_WITH_GST_DETAIL:
@@ -693,6 +702,10 @@ def _validate_hsn_codes(doc, valid_hsn_length, throw=False, message=None):
     rows_with_invalid_hsn = []
 
     for item in doc.items:
+        # Skip HSN validation for items marked as ignored for GST
+        if item.gst_treatment == IGNORED_GST_TREATMENT:
+            continue
+
         item.gst_hsn_code = (item.gst_hsn_code or "").replace(" ", "")
 
         if not (hsn_code := item.get("gst_hsn_code")):
@@ -1178,8 +1191,23 @@ def update(self, doc):
         self.set_temp_item_wise_tax_detail_object()
 
         self.set_item_name_wise_tax_details()
+        self.reset_ignored_items()
         self.validate_item_gst_details()
 
+    def reset_ignored_items(self):
+        """
+        Reset taxable_value, tax rates, and tax amounts to zero for items marked as 'Ignored for GST'.
+        This ensures these items don't contribute to GST totals in statutory reports.
+        """
+        for item in self.doc.get("items"):
+            if item.gst_treatment != IGNORED_GST_TREATMENT:
+                continue
+
+            item.taxable_value = 0
+            for tax_type in GST_TAX_TYPES:
+                item.set(f"{tax_type}_rate", 0)
+                item.set(f"{tax_type}_amount", 0)
+
     def get_item_defaults(self):
         item_defaults = frappe._dict(count=0)
 
@@ -1475,6 +1503,10 @@ def set_default_treatment(self):
         default_treatment = self.get_default_treatment()
 
         for item in self.doc.items:
+            # Preserve "Ignored for GST" treatment if already set
+            if item.gst_treatment == IGNORED_GST_TREATMENT:
+                continue
+
             item.gst_treatment = self.gst_treatment_map.get(item.item_tax_template)
 
             if not item.gst_treatment or not item.item_tax_template:
@@ -1726,6 +1758,10 @@ def validate_item_tax_template(doc):
         if item.taxable_value == 0:
             continue
 
+        # Skip items marked as ignored for GST
+        if item.gst_treatment == IGNORED_GST_TREATMENT:
+            continue
+
         if item.gst_treatment == "Zero-Rated" and not doc.get("is_export_with_gst"):
             continue
 

india_compliance/gst_india/utils/gstr3b/gstr3b_data.py

@@ -3,7 +3,10 @@
 from frappe.query_builder.custom import ConstantColumn
 from frappe.query_builder.functions import IfNull, Sum
 
-from india_compliance.gst_india.constants import GST_TAX_TYPES
+from india_compliance.gst_india.constants import (
+    GST_TAX_TYPES,
+    IGNORED_GST_TREATMENT,
+)
 from india_compliance.gst_india.overrides.transaction import is_inter_state_supply
 from india_compliance.gst_india.utils import get_full_gst_uom
 from india_compliance.gst_india.utils.gstr_1 import GSTR1_SubCategory
@@ -204,6 +207,8 @@ def get_base_purchase_query(self):
             .where((self.PI.is_opening == "No"))
             .where(self.PI.company_gstin != IfNull(self.PI.supplier_gstin, ""))
             .where(IfNull(self.PI.itc_classification, "") != "Import Of Goods")
+            # Exclude items marked as ignored for GST
+            .where(IfNull(self.PI_ITEM.gst_treatment, "") != IGNORED_GST_TREATMENT)
         )
 
         return self.get_query_with_common_filters(query, self.PI)

india_compliance/gst_india/utils/gstr_1/gstr_1_data.py

@@ -10,7 +10,10 @@
 from frappe.query_builder.functions import Date, IfNull, Sum
 from frappe.utils import cint, flt, getdate
 
-from india_compliance.gst_india.constants import GST_REFUND_TAX_TYPES
+from india_compliance.gst_india.constants import (
+    GST_REFUND_TAX_TYPES,
+    IGNORED_GST_TREATMENT,
+)
 from india_compliance.gst_india.utils import (
     get_escaped_name,
     get_full_gst_uom,
@@ -139,6 +142,8 @@ def get_base_query(self):
             .where(self.si.docstatus == 1)
             .where(self.si.is_opening != "Yes")
             .where(IfNull(self.si.billing_address_gstin, "") != self.si.company_gstin)
+            # Exclude items marked as ignored for GST
+            .where(IfNull(self.si_item.gst_treatment, "") != IGNORED_GST_TREATMENT)
             .orderby(
                 self.si.posting_date,
                 self.si.name,

india_compliance/gst_india/utils/gstr_1/test_gstr_1_books_data.py

@@ -835,6 +835,61 @@ def test_transaction_split_b2b_nil(self):
             ][0],
         )
 
+    def test_transaction_with_ignored_item(self):
+        """
+        Test that items marked as 'Ignored for GST' are excluded from GSTR-1 report.
+        Creates an invoice with one taxable item and one ignored item,
+        verifies only the taxable item appears in the report.
+        """
+        si = create_sales_invoice(
+            customer="_Test Registered Customer",
+            is_in_state=True,
+            do_not_submit=True,
+            items=[
+                {
+                    "item_code": "_Test Trading Goods 1",
+                    "qty": 1.0,
+                    "rate": 100.0,
+                },
+                {
+                    "item_code": "_Test Trading Goods 1",
+                    "qty": 1.0,
+                    "rate": 200.0,
+                },
+            ],
+        )
+
+        # Mark second item as ignored for GST
+        si.items[1].gst_treatment = "Ignored for GST"
+        si.save()
+        si.submit()
+
+        data = GSTR1BooksData(filters=FILTERS).prepare_mapped_data()
+
+        # Only the taxable item (100.0) should appear in report
+        # The ignored item (200.0) should be excluded
+        self.assertDictEq(
+            {
+                "transaction_type": "Invoice",
+                "total_taxable_value": 100.0,  # Only first item
+                "total_igst_amount": 0.0,
+                "total_cgst_amount": 9.0,
+                "total_sgst_amount": 9.0,
+                "total_cess_amount": 0.0,
+                "items": [
+                    {
+                        "taxable_value": 100.0,
+                        "igst_amount": 0.0,
+                        "cgst_amount": 9.0,
+                        "sgst_amount": 9.0,
+                        "cess_amount": 0.0,
+                        "tax_rate": 18.0,
+                    }
+                ],
+            },
+            data[GSTR1_SubCategory.B2B_REGULAR.value][si.name],
+        )
+
     def test_hsn_summary_with_bifurcation(self):
         si = create_sales_invoice(
             customer="_Test Registered Customer",

india_compliance/gst_india/utils/transaction_data.py

@@ -9,6 +9,7 @@
     GST_REFUND_TAX_TYPES,
     GST_TAX_RATES,
     GST_TAX_TYPES,
+    IGNORED_GST_TREATMENT,
     TAXABLE_GST_TREATMENTS,
     VALID_HSN_LENGTHS,
 )
@@ -325,6 +326,10 @@ def get_all_item_details(self):
             items = self.group_same_items()
 
         for row in items:
+            # Skip items marked as ignored for GST
+            if row.gst_treatment == IGNORED_GST_TREATMENT:
+                continue
+
             item_details = frappe._dict(
                 {
                     "item_no": row.idx,