1. Localizations for India Implementation Guide
  2. Offsetting GST Credit for Personal Consumption of Purchased Goods

Offsetting GST Credit for Personal Consumption of Purchased Goods

You run the Personal Consumption Update ITC program (R75I805) to offset GST input tax credit (ITC) for purchased goods that are personally consumed by the purchaser. This program retrieves information from the Personal Consumption GST Setoff table (F75I824) and GST Cross Reference Setup table (F75I803).

When you run the program, the system retrieves the personal consumption purchase order records for the GST unit (comprising all business units under the GST unit) that you specify in the processing option or during data selection. The system retrieves only those unprocessed records that do not have a value of Y (Processed) in the Processed Flag field of the F75I824 table and have a value of Y in the Recoverable field of the GST Tax File table (F75I807). You can run the program in proof mode or final mode.

In proof mode, the system prints the transactions at the purchase order item level and reason code level with the GST (CGST, IGST, SGST, and Cess) amounts summarized at the GST unit and business unit levels.

In final mode, the system:

  • Prints the Personal Consumption Update ITC report, listing all the transactions at the purchase order level for each business unit with the GST (CGST, IGST, SGST, and Cess) amounts summarized at the business unit level and GST unit level

  • Generates and displays the batch number in the report

  • Updates the Processed Flag field in the Personal Consumption GST Setoff table (F75I824) to Y (Processed)

    After a purchase order has been marked as Processed, the system will not mark the order again as Processed when you run the program again to process available quantity of items in the same purchase order.

  • Enters decreased GST amounts for each applicable GST type (IGST, SGST, CGST, and Cess) in the input tax credit (ITC) ledger in the GST Ledgers-IND-75I table (F75I823)

    The system uses the GL date that you enter in the processing option to retrieve the period and year. The system also uses this GL date when records are added to the F75I823 and F0911 tables.

  • Updates the ITC closing balances in the GST Ledgers Setup table (F75I804) with decreased ITC summarized amounts at the GST unit level

    Based on the combination of the GST unit, period and year, the system fetches records from the F75I804 table and updates the ITC ledger for the records.

  • Creates journal entries in the Account Ledger table (F0911) by crediting the intermediate GST account and debiting the GST permanent account

    The system determines the intermediate and permanent accounts from the GST Account Master Setup table (F75I805). The system creates journal entries only when the GST amount is not equal to blank or zero.

If the ledger update for a GST unit is successful, the system prints the message in the report that the ledger has been updated successfully. If the ledger update for a GST unit failed, the system prints an error message in the report including the cause for the error. The system does not update the tables for that GST unit, but continues to process the other GST units.