Reverse Charge for Services Received

You run the Calculate GST for A/P Vouchers program (R75I804) to calculate GST for services received from service providers. The system calculates GST (IGST, CGST, SGST, and Cess) for the transactions based on the GST rule set up in the GST Rule Setup table (F75I802) and the GST rate set up in the GST Tax Rate Setup table (F75I809).

If reverse charge applies to the accounts payable transactions, the R75I804 program calculates 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). The system creates journal entries for the transactions, debiting the GST amounts in the intermediate accounts that you have set up in the GST Account Master Setup program (P75I805) and crediting the amounts in the (PC) AAI credit account that the system retrieves using the G/L offset from the GST GL Offset Setup table (F75I835). If the G/L offset is not specified, the system uses the default trade account associated with the AAI item PC for general ledger credit entries.