This chapter discusses these topics:
Section 36.1, "Understanding Input Tax Credit (ITC) for GST"
Section 36.3, "Summarizing the GST Tax File to Match with GSTR2A"
Section 36.4, "Matching the Summarized Tax Data with GSTR2A to Claim ITC"
Section 36.5, "Using the Claim ITC for Non Reverse Purchase and AP Transactions Program (R75I821)"
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Note: Before you perform the tasks in this chapter, you must:
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You can claim a credit for any GST (CGST, IGST, SGST, and Cess) included in the price you pay for goods and services to run your business. This is called the GST input tax credit, which is a credit for the tax included in the price of your business input.
You can claim GST credits for non-reverse charge transactions if these conditions are met:
You have received the goods or services.
The goods or services must be only for business purposes.
GST should be applicable to the input transactions (goods or services).
The supplier has deposited the GST collected from you and you have received the GSTR2A report from the government.
The GSTR2A report contains the tax information submitted by the supplier to the tax authority.
To claim the ITC for your purchases, you must perform these tasks:
Maintain the GSTR2A information in the JD Edwards EnterpriseOne system.
Summarize the purchase transactions to match with the GSTR2A information.
Match the summarized purchase transactions with the GSTR2A information.
You, as the purchaser, have visibility into your purchases through the GSTR2A report provided by the tax authority with information from the supplier (about the outward supply details).
You must enter or import the GSTR2A information in the JD Edwards EnterpriseOne system in a form that will enable you to match the GSTR2A data with the transactions that you have entered. You use the Work with Inbound GSTR2A program (P75I811) to maintain the GSTR2A information that you receive from the government.
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Note: Currently, the JD Edwards EnterpriseOne system allows you to enter the GSTR2A information using the P75I811 program.However, no validations are performed on the data you enter in this application. You should use this application to test the matching process functionality. |
To maintain the GSTR2A information, you associate the purchaser record with the GSTR2A report for a specific month and year. The system stores the purchaser details in the GSTR2A Report Header table (F75I811) and the GSTR2A information in the GSTR2A Report Detail table (F75I812).
Before you complete the task in this section, you must set up the GST Unit Search Type processing option for the P75I811 program. If you do not specify a value in this processing option, the system uses the search type GTU.
To add a purchaser record and to associate the purchaser with the GSTR2A report for a particular month and year:
From the GST Module, click GST Periodic Processing (G75IGST5H), and then GSTR2 Information.
On the Work With Inbound GSTR2A form, review the existing GST unit records.
To enter basic details about the purchaser, click Add.
On the GSTR2A Purchaser Details form, enter values in these fields:
GST Unit
GST Identification Number
Name
Month
Year
Click OK.
On the Work With Inbound GSTR2A form, select the purchaser record that you created. Click the Row menu, and then select the GSTR2A section details to be added. Three GSTR2A sections are available:
Reg. Non RC Trans. that represents the inward supplies received from a registered person other than the supplies availing the reverse charge section of GSTR2A.
Reg. RC Trans. that represents the inward supplies received from a registered person on which tax is to be paid on the reverse charge section of GSTR2A.
Debit/Credit Notes that are debit or credit notes (including amendments thereof) received during the current tax period section of GSTR2A.
Complete these fields for the selected section:
On the Inward Supplies Registered Suppliers - Non Reverse Charge Section form:
Supplier GSTIN
Invoice Number
Invoice Date
Invoice Amount
GST Rate Type
GST Rate Description
GST Rate Description is a automated field.
Taxable Amount
IGST Amount
CGST Amount
SGST Amount
Cess Amount
Place of Supply
POS Description
POS Description is a automated field.
On the Inward Supplies Registered Suppliers - Reverse Charge Section form:
Supplier GSTIN
Invoice Number
Invoice Date
Invoice Amount
GST Rate Type
GST Rate Description
Taxable Amount
IGST Amount
CGST Amount
SGST/UT Amount
Cess Amount
Place of Supply
POS Description
On the Debit/Credit Notes Section form:
Original Supplier GSTIN
Original Invoice Number
Original Invoice Date
Supplier GSTIN
Invoice Number
Invoice Date
Invoice Amount
GST Rate Type
GST Rate Description
Taxable Amount
IGST Amount
CGST Amount
SGST/UT Amount
Cess Amount
Place of Supply
POS Description
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Note: The system populates Matched field with a value of Y when you successfully match the summarized tax information with the GSTR2A report using the GST Matching Application program (P75I812). The field displays the value E if the record is a duplicate. The system will not allow the matching of duplicate records. |
Before you can match the transactions in the GST Tax File table (F75I807) with the GSTR2A report, you must summarize the tax information in the F75I807 table in a format that can be matched with the report.
You use the GST Tax File Summarization program (R75I803) to summarize the tax information in the F75I807 table. The system selects tax records for summarization from the F75I807 and F0411 tables. Only posted transactions that are not voided and are not matched are eligible for the summarization.
The system searches the F75I807 and F0411 tables for transactions that match the values in these fields in the order listed below:
GSTIN of the purchaser
GSTIN of the supplier
Invoice date
Invoice number
GST Rate Type
For each set of transactions with matching values, the system sums the amounts for the tax types (CGST, SGST, IGST, and Cess), the taxable amount, and the gross amount, and inserts a record in the GST Tax File Summarization Detail Workfile table (F75IUI83). If the value changes for any of these fields, then a new record is inserted in the F75IUI83 table.
You can run this report any number of times with any date range. The system generates a summarization job ID every time you run this report. The summarization job ID is saved in the GST Tax File Summarization Header Workfile table (F75IUI82). For each report run, the system adds only one record in the F75IUI82 table with the unique summarization job ID. When you match the summarized information with the GSTR2 report later in the process, you can select a specific job ID for matching.
Before you complete the task in this section, you must set up the processing options for the R75I803 program.
In the processing options, you specify:
The GST unit for which you want to summarize the tax file
The from and through dates to select records for processing
Whether to include only paid vouchers or all vouchers (approved, held, paid) in the report
The system includes only those transactions that have the Posted status.
A description for the summarization job
If you do not enter a description for the summarization, the system populates a default description by combining the Summarization Job ID, From Date, and Thru Date values.
Whether to include the Reverse charge in the report
To claim input tax credit, you must match the summarized tax information and the GSTR2A inbound report received from the tax authority. You use the GST Matching Application program (P75I812) to perform the matching process.
When all of the goods or services that you have paid for are not for business purposes and some are for your personal use, you declare those goods meant for business use to claim GST ITC. To exclude the amounts for which you cannot claim ITC, you can revise the calculated CGST, SGST, IGST, and Cess amounts before you process the records. The revised amounts that you enter must be less than the calculated GST amounts.
To match the transactions (included in a job) with the GSTR2A information:
From the GST Module, click GST Periodic Processing (G75IGST5H), and then GST Matching Application.
On the Select Summarization Tax form, select a job from the detail grid.
The job includes the summarized transactions that you want to match with the GSTR2A information from the government.
To delete the summarized transactions, click the Delete button on the Summarization Tax form. The system deletes the summarized data from the GST Tax File Summarization Header Workfile (F75IUI82) and the GST Tax File Summarization Detail Workfile (F75IUI83) tables.
To review the summarized transactions included in the job, click the Summarized Details button on the Row menu. The system displays the summarized transactions in the Summarization Details form. Click Close after reviewing the summarized transactions.
To delete the summarized record, click the Delete button on the Summarization Details form. The system deletes the record from the GST Tax File Summarization Detail Workfile (F75IUI83).
To review the tax information, click the Tax Details button on the Row menu. The system navigates to the P75I807 program, which contains the tax information.
To view the summarized data categorized on the basis of the GST Rate Type, click Tax File Details on the Row menu. To view the G/L entries after the matching process is complete, click Ledger Details on the Form menu.
On the Select Summarization Tax form, click Select to perform the matching task.
The system displays the Work With Match Process form, which contains five sections:
GSTR2A Details: This section includes the job ID and the GST unit for the selected job. The section also includes the month and the year fields that you use to retrieve corresponding records for matching.
GSTR2A Inbound Data: This section includes the unmatched GSTR2A inbound data for the specified GST unit, month, and year. The GSTR2A data is provided by the government and stored in the F75I811 and F75I812 tables.
Matched Records: This section includes the records that are matched successfully.
Unmatched Records: This section includes the records that are not matched.
Final Matched and Claimed Records: This section includes the records that are matched and processed for claiming input tax credit.
On the GSTR2A Details section, enter the month and the year for which you want to retrieve GSTR2A transaction records to match.
The system searches the GSTR2A Report Detail table (F75I812) for the records that are not marked as matched and displays the retrieved records on the GSTR2A Inbound Data section.
Click Match to match GSTR2A data with the summarized transactions included in the job that you have selected.
The matching process occurs automatically based on these values: invoice number, invoice date, supplier GSTIN, purchaser GST unit, and the GST rate type.
The system displays the GSTR2A records on the GSTR2A Inbound Data section, and moves the records that are successfully matched to the Matched Records section and those that are not matched to the Unmatched Records section.
Click Refresh to refresh the GSTR2A data in all the five sections of the Work With Match Process form.
Review the records in the Matched Records section.
This section includes both GSTR2A information and summarized information for the matched records. You can identify GSTR2A information from the field names that start with GSTR2, for example: GSTR2 Taxable Amount, GSTR2 IGST Rate.
Note that the Mark Match option, Revised IGST Amount, Revised SGST Amount, Revised CGST Amount, Revised CESS Amount, and the Remarks fields are active for recoverable transactions with non-reverse charges. To claim lesser amounts of the calculated GST (IGST, SGST, CGST, and Cess), you enter the amounts in the revised IGST, CGST, SGST, and CESS amount fields, and any remarks for the revision in the Remarks field. The system populates the Revised Claim ITC field with the sum of the revised GST amounts that you entered in the Revised IGST Amount, Revised SGST Amount, Revised CGST, and Revised CESS Amount fields.
To complete the matching task, select Mark Match for each record that you want to process to claim input tax credit.
To view the tax file information for the matched record, unmatched record, or final matched and claimed record, click the Tax File Details button.
The system does not consider the records as matched unless you mark them manually.
Click Select Records on the Matched Records section.
The system populates the Final Matched and Claimed Records section with the matched records. You must have at least one matched record in this section to complete the matching task in order to claim ITC for that record.
Click the Select All button to select all the records for matching.
Click the Modify Records button to modify the selected record. Only those records having a different GSTR2A Original Invoice Number and Original Invoice Number of Summarized Information can be modified.
Review the matched records in the Final Matched and Claimed Records section, and click Confirm and Update ITC to complete the process.
The system performs validations and reports error messages if there are issues.
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Important: The system cannot revert the updates after you click the Confirm and Update ITC button. |
If there are no error messages and there is at least one matched record in the Final Matched and Claimed Records section, the matching process is complete, and the system:
Creates ITC ledger entries in the GST Ledgers table (F75I823) with the batch number and the GST amounts for each applicable GST type (IGST, SGST, CGST, and Cess)
The system updates the batch number and the batch type of the non-reverse charge records for which ITC is being claimed in the GST Tax File table (F75I807).
Updates the ITC closing balances in the GST Ledgers Setup table (F75I804) with the confirmed ITC amounts
Marks the records as matched in the GSTR2 Report Detail table (F75I812) and in the GST Tax File table (F75I807)
Updates the Account Ledger table (F0911), debiting the intermediate ITC accounts and crediting the permanent ITC accounts
The system determines the intermediate and permanent accounts from the GST Account Master Setup table (F75I805).
Deletes all records for the summarization job ID that was used in the matching from the GST Tax File Summarization Header Workfile (F75IUI82) and the GST Tax File Summarization Detail Workfile (F75IUI83) tables
The system stops the processing if there are no records in the Final Matched and Claimed Records section.
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Note: The matching application updates the ITC ledger and balance amounts only for recoverable non-reverse charge transactions. |
Use the Claim ITC for Non Reverse Purchase and AP Transactions program (R75I821) to claim input tax credit for non-reverse purchase and AP transactions.
You can run this program in proof mode or final mode. For the GST unit and the date range specified in the processing options of this program, the system processes the records from the GST Tax File table (F75I807) that are posted, recoverable, and not processed (batch number is blank).
The system:
Creates ITC ledger entries in the GST Ledgers table (F75I823) with the batch number and the GST amounts for each applicable GST type (IGST, SGST, CGST, and Cess).
Updates the ITC closing balances in the GST Ledgers Setup table (F75I804) with the tax amounts.
Updates the Account Ledger table (F0911), crediting the intermediate ITC accounts and debiting the permanent ITC accounts. The system determines the intermediate and permanent accounts from the GST Account Master Setup table (F75I805).
Updates the batch number and batch type in the GST Tax File table (F75I807).
The R75I821 report includes details of the goods transactions, service transactions, and GST ITC ledger closing balance.