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.

Delivery challans

Delivery challans can now be created for cost items (not via shipments). Additionally, inward challans are now available for sales returns.

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.

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.