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