India

Various Indian requirements are now supported.

Master data

  • Country (PAN), State (GSTIN), and Special Economic Zone level tax registration numbers can be maintained for the own organization and the business partner. The registration numbers are retrieved during transactions.
  • The tax setup has been improved to maintain and retrieve default values for intra-state, inter-state, export and import taxes. (Aggregate) tax codes can be retrieved during transactions.
  • HS codes can be maintained for goods and services. HS codes can be retrieved during transactions.
  • Reverse charge (shifted) tax can be maintained. Reverse charge can also be part of the aggregate tax code.
  • The Own Registration code can be used as one of the dimensions to enable ledger postings by dimension for the tax transaction line. The registration code is automatically filled as a dimension for all tax postings. For an indirect tax type, this facilitates the creation of one tax code for the entire country.

Sales

These sales scenarios are now supported:

  • Domestic intra-state sales, B2B and B2C
  • Domestic inter-state sales, B2B and B2C
  • Direct exports, with or without payment of taxes
  • Exports to SEZ units, with or without payment of taxes
  • Deemed exports

Purchase

These purchase scenarios are now supported:

  • Domestic intra-state purchases
  • Domestic inter-state purchases
  • Direct imports
  • Imports from SEZ units
  • Reverse charge (shifted tax) purchases
  • Purchases involving expensed purchase tax

Transfer

A transfer between two warehouses in different GST jurisdictions can be set up as a taxable transaction.

Delivery challans

  • Delivery challans can be generated for goods movement
  • Delivery challans can be generated also after shipment confirmation
  • Delivery challans can be created for cost items (not via shipments)
  • E-way bill data can be generated for these challans
  • Inward challans are available for sales returns

Subcontracting challans

  • Subcontracting challans can be generated for delivery of components to the subcontractor
  • When a finished product is received, receipts can be linked to one or more challans, which enables complete tracking of the material sent out
  • E-way bill data can be generated for these challans

Shipment charges

For a direct export order, shipment charges such as freight, insurance and handling can be added to a shipment. One or more of these shipment charges can be considered for FOB value calculation.

Letter of undertaking and shipping bill

For a direct export order, letter of undertaking and shipping bill details can be maintained.

Invoicing

  • Invoice series by registration numbers can be maintained
  • For direct exports, a separate tax invoice can be generated

E-invoicing - Sales

  • An e-invoice can be generated for all required invoices
  • API based e-invoices are supported
  • Signed invoices are received which can be used to retrieve a QR code and Invoice Reference Number (IRN)

E-invoicing - Purchase

A QR code can be scanned for purchase invoices.

Withholding tax

  • Business partner PAN-wise thresholds can be maintained
  • For each threshold, a different tax rate can be maintained
  • The appropriate tax rate is retrieved during invoicing transaction

Withholding tax – return file generation (E-TDS)

TDS tax transactions can now be uploaded in a prescribed file format to the Income Tax department of the government of India where they can be received and maintained through OLTAS (Online Tax Accounting System).

So, an option is available to generate the file with all the TDS tax transactions in the acceptable format.

Tax Collected at Source (TCS)

  • Business partner PAN-wise turnover can be derived on a periodic basis
  • A debit note can be generated to collect TCS from the customer

Tax declarations

Tax declarations by registration number are now supported.

Tax reporting

These declarations are now supported:

  • Sales declarations (ANX-01 or GSTR1)
  • Purchase declarations (ANX-02 or GSTR2)

Tax accounting

An Intercompany Trade parameter has been introduced to determine registration numbers, tax jurisdiction, and tax codes based on ship-from state and ship-to state. Options have been added to the Intercompany Trade Relationship. You can now maintain a relationship to trigger an intercompany order only if registration numbers differ.

Purchase invoices can now be matched and approved based on an import reference number. A view filter can be applied to show only the data for which the Import Reference is specified. The import reference is an equivalent of the bill of entry and must be stated on the warehouse receipt during receipt confirmation.

2A/2B reconciliation

The input tax credit rules now state that only GST taxes declared by suppliers on their tax returns and communicated to the buyer through their monthly GSTR2B are available as input credit for the monthly tax. GSTR2B lists invoices, credit notes, and debit notes submitted by suppliers in their tax returns against the buyer’s tax registration number.

To comply with the tax credit rules, functionality is now available for buyers to import GSTR2A/2B data in LN and reconcile it with GSTR-2. Input tax credit can be used only for records that are reconciled with GSTR2A/2B.

Classification schemes

Classification schemes, which are used to support the classification of goods and services for different countries, have been extended to support the classification of financial transactions.

The Additional Reporting Data (lpind5118m000) session has been added and is available from multiple financial sessions. In this session, you can view and maintain these attributes:

  • Scheme Base
  • Classification Scheme
  • Classification Scheme Code

This session is available in places where financially taxable transactions are specified, for example, for these financial documents:

  • Purchase invoices – cost invoices and match to order
  • Sales invoices, manually specified in Financials
  • Bank transactions
  • Payment advice and direct debit advice lines
  • Standing order and standalone payments
  • Journal vouchers

The classification scheme code from the Additional Reporting Data (lpind5118m000) session is used when generating tax reports for India.

This functionality is available only if the classification functionality and the India localization are both implemented.

D3 intimation

When items are received in a warehouse for depot repair, a D3 Intimation document can now be generated to record the details of the received goods. When goods are repaired and shipped, D3 intimations can be linked to the shipment. Consequently, a record can be kept of receipts, shipments, and balances.

Export promotion schemes

From time to time, the government of India introduces schemes to encourage the export of goods and services, for example, MEIS and SEIS. And to refund taxes and fees that are non-recoverable, for example, RoDTEP.

A generic framework is now provided to support this. Users can define this framework, both for goods and services. After a GSTR 1 record is created, the applicable promotion lines and schemes can be specified.

Generation of non-API based e-invoices

The government of India does not allow the use of direct APIs for organizations with an invoice amount less than a certain value. Consequently, an option is now available to generate a CSV file with sales invoices that can be uploaded to the tax portal for generating Invoice Reference Numbers (IRNs).

Use of tax credit

There are rules for using the available tax credit against the payment of tax. For example, the input tax credit that is available for State GST cannot be used for Central GST. A framework is now provided to align input tax credit with tax liabilities.

Deferral of input tax credit for reverse charge

In the Tax Code by Country (tcmcs0636m000) session, you can now defer the declaration of tax transactions for additional scenarios.

These additional check boxes can be selected:

  • Defer Declaration of Sales Tax Transactions
  • Defer Declaration of Purchase Tax Transactions
  • Defer Declaration of Input Shifted Tax Transactions
  • Defer Declaration of Output Shifted Tax Transactions

If a check box is selected, the declaration of the respective tax transactions is deferred by default. You can manually allow deferred taxes to be declared.

Factory Track integration enhancements

If Factory Track (FT) is used for imported goods in India, you can now specify the bill of entry number, date, and port details in LN before confirming the warehouse receipt.

The warehouse receipt and the lines are created from Factory Track, but the receipt is not confirmed. You must specify the above details and confirm the receipt from LN.

Note: This functionality applies only to India.