Calculating GST for Advance Payments for Services

You use the GST Advance Payment for Services program (P75I829) to calculate the GST liability for the advance payment received from the customer. The P75I829 program calculates the GST for unapplied receipts using the SAC tax rates for IGST, CGST, SGST, and GST Cess from the GST Tax Rate Setup table (F75I809).

When you commit the receipts for advance payments in the P75I829 program, the system:

• Stores the advance payment information in the Advance Payment GST Transaction Services table (F75I831)

• Creates 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 TL (Tax Liability) ledger in the GST Ledgers Setup table (F75I804) with the confirmed liability amounts

• Creates journal entries for the liability accounts and updates the Account Ledger table (F0911)

  The system credits the permanent liability accounts that you have set up in the GST Account Master Setup program (P75I805). The system debits the accounts retrieved by concatenating the AAI item entered in the processing option for the P75I829 program with the G/L offset from the GST GL Offset Setup table (F75I835). If the AAI processing option and the G/L offset codes are not specified, the system uses the default trade account associated with the AAI item RC.