Understanding Input Tax Credit (ITC) for GST

Note:

Before you perform the tasks in this chapter, you must:

• Create the purchase vouchers for goods and match the vouchers with the receipts.

  See Creating a Purchase Voucher for GST.

• Create accounts payable vouchers for services and calculate the GST for the amounts in the vouchers.

  See Creating Vouchers for GST Applicable Services.

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.