| # The Input Tax Credit process Input tax credit is availing the credit on the input tax charged on any supply of goods or services. ITC can be availed after the goods/services are received or delivered. Note ITC is available after the supplier pays the GST liability. ITC is also available on provisional basis. ITC can be availed in transfer scenarios even if bilateral invoicing is not applicable. ITC is reversed with penalty on default of supplier payment of taxes can be taken once the supplier pays the taxes along with the penalty reversed. Generating the Input Tax lines If GST is applicable for an item, after the confirmation of the receipt, Infor LN generates the input tax lines if the ITC Claim Point field is set to Before Invoice in the India Localization Parameters (tccom9136m00l) session. If the ITC Claim Point field is set to After Invoice, Infor LN populates the Input Tax Credit Lines (tfacp9137m00l) session with the tax details, after the purchase invoice linked to the order is matched and approved. Note The purchase invoice postings are done:
Account | Debit/Credit
Accounts Payable | Credit
Register Invoices | Debit
GRNI | Debit
Processing the Input Tax Lines You can process the input tax lines using the Process Input Tax Credit Lines (tfacp9600m00l) session. If the ITC data is processed, the postings are:
Account | Debit/Credit
GRNI | Credit
Tax Account | Debit
If the invoice is matched with the order, the postings are:
Account | Debit/Credit
Accounts Payable | Credit
Register Invoices | Debit
GRNI | Debit
If the supplier does not pay the taxes and the ITC is availed on provisional bases, ITC is reversed. The postings are:
Account | Debit/Credit
Tax Account | Credit
GRNI | Debit
If the supplier pays the tax amount, and the ITC is re-availed, the postings are:
Account | Debit/Credit
GRNI | Credit
Tax Account | Debit
Related topics Introduction to GST Master data set-up Impact of GST on the Purchase Order process Impact of GST on the Sales Order process Impact of GST on the Warehouse Transfer process Impact of GST on the Maintenance lines Impact of GST on Service processes Impact of GST on Supplier Claim process Impact of GST on Customer Claim process |