Calculating GST for Service Transactions
You run the Calculate GST for A/P Vouchers program (R75I804) to calculate GST for service transactions. When you run this program, the system selects the accounts payable vouchers from the Accounts Payable Ledger table (F0411) for the date range and company specified in the processing option.
The R75I804 program calculates the GST amounts for those accounts payable vouchers that are not posted and not matched. The system does not calculate the GST and prints specific error messages in the report if these conditions are not met.
You can run the R75I804 program to calculate GST for vouchers that you have paid, not paid, or partially paid the base transaction amount for the services received.
Voided vouchers that are updated are eligible for GST calculation.
You can set processing options to include both processed and unprocessed vouchers in the report. Processed vouchers are those vouchers that have already been included in an earlier report run and have GST amounts already calculated. If you edit the voucher base amount for a processed voucher, and you rerun the R75I804 program, the system recalculates the GST for the voucher based on the updated base amount.
However, processed vouchers for which you have paid or partially paid the GST amounts are not eligible to be processed again. The system prints an error in the report for the vouchers that have paid or partially paid GST amounts.
When you run the program, the system:
Determines the Transaction Category for all selected vouchers by using their Place of Supply values. For those vouchers that do not have Place of Supply values, the system uses the state value of the Business Unit. The system uses this information to identify the transaction as an intrastate or an interstate transaction and calculates the GST amounts accordingly.
Calculates the GST (CGST, SGST, IGST, and Cess) amounts for all selected vouchers and prints a report with all the processed vouchers at the voucher level detail
For those vouchers that have discounts, the system calculates the GST by deducting the discount amounts from the gross amounts.
Creates GST lines (CGST, SGST, IGST, and Cess as applicable) for the voucher in the GST Tax File table (F75I807)
Creates journal entries for the posted transactions and updates the Account Ledger table (F0911)
The system debits the ITC intermediate accounts that you have set up in the GST Account Master Setup program (P75I805). The system credits the (PC) AAI accounts that are retrieved using the G/L offset for each applicable GST type specified in the processing options for the R75I804 program. If the processing option for R75I804 program is not specified, the system uses the G/L offset from the GST GL Offset Setup table (F75I835).
Note: If the GST rule for the GST unit is set as nonrecoverable in the P75I805 program, the system updates the nonrecoverable accounts and does not affect the intermediate accounts.For transactions where reverse charge is applicable, the system creates journal entries with the GST amounts that the receiver must pay to the service provider. This is the amount that the system calculates using the provider's percentage set up in the GST Rules Setup program (P75I802).
Creates pay item lines in the F0411 table for each tax sub category