India

@sharpdrivetek Why Data is Unavailable Under Sec 17(5).
We can Create New Tax Codes For Ineligiable ITC and Use Them In GSTR-3B

please make sure to read all discussions in this topic and other localization topics first. this will help you understand what is implemented, how it is implemented, why it is implemented the way it is and why some are yet to be implemented.

@sharpdrivetek

In the latest version (21.11.61) reverse charge amounts are showing on invoices.

@lubos this is perfect. works well on sales and purchase invoices.

but the totals section on Receipts and Payments the tax name shows with the prefix Reverse charged.

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The latest version (21.11.62) fixes that.

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@lubos is this something limited to the input tax codes?
should the output reverse charges be categorized as a regular tax code?

while I can see the sign reversed for input transactions in the report transformation, the output transactions show as zero.

@sharpdrivetek the invoice was dated at 13/11/2021 but the report transformation was for the period up to 10/11/2021. That’s why this transaction would not show on report transformation. After changing date on report transformation, the transaction shows.

Also, “reverse charge tax code” reporting category is not applicable to most countries. So far only United Arab Emirates and Bahrain are known to utilize it. You might find out it’s not needed for India at all just like it is the case for most countries.

Sorry my bad. I got carried away seeing the category listed but greyed out and showing zero.

Regarding “reverse charge tax code” I will have to read the UAE localization topic again and understand better if this is something we need. I will get back to you on that.

@lubos just like we can add free text using ", can we have something similar to tag the cells?
for example, {A} and {B} could be inserted in separate cells which can then be used to perform calculations in another cell by entering {A+B}

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@sharpdrivetek this is not essential requirement right? It would just make report transformations “less dense” because you don’t have to repeat the same reporting categories in total fields. I’m not saying it’s a bad idea, it’s just not essential to have.

When GSTR-3B is done and published, I will be looking for ways to simplify things further.

i cannot give a simple yes or no answer to this. it depends on how you plan to implement the data for ITC Reversed section of the report. my suggestions for the same is below

for the basic localization and GSTR-3B report to be published we still have the below developments pending.

  • some user friendly method to implement the said ITC Reversed section. (details as linked above.)

  • eliminate the automatic offset transactions for reverse charged tax codes. (details here.)

  • few cells above the Name field of the report where the user has choice to include data from Business Details like their business identifier, address, etc.

  • also, it would be an addition if we could select or automatically show financial year and the month on these reports.

@lubos i need your help and suggestions.

there is a part of GSTR-3B report which is mandatory which I planned to add later after you implement possibility to enumerate through invoices. but the report would be incomplete without this section.

so this section needs to be listed by the place of supply which had transactions during the reporting period. the other three header columns are defined as a custom field for customers.
I need your advice on which direction we need to go about for implementing this.
do I need to list every place of supply as a row and use scripts to show only the ones which had a transaction during the period?
I think there should be possibility to select data in the first column too.
also, an additional column is required for this.

@sharpdrivetek how would you capture “place of supply”? If it’s custom field on customer level, then what if customer spans multiple places of supply? I assume this should be defined on transaction level?

How does other accounting software in India deal with this issue?

most of the software deal with it voucher wise

So users would select place of supply on invoices, credit notes, receipts, payments etc. Correct?

yes it should then there should be link to Tax Rates and Tax reports

I have used software where Tax is calculated based on supply place which should be applicable to India @sharpdrivetek should confirm the best way

the present practice is to have custom fields on both customer and transaction levels.
regular customers are created in the Customers tab and the custom field data flows to the sales invoice automatically. it should be noted that only the Place of Supply is required to be printed on the documents and only that field was used until now. the other custom fields now in discussion are only to categorize the customers for localization reporting needs.

for one-off customers we utilize the same customer name, like Misc. Customer , one each for different category of business and then select the Place of Supply in the sales invoice.

the same practice applies for Credit Notes.

I do not use the Receipts tab for one-off cash customers because the Receipts tab will need all the custom fields combined from both Customers and Sales Invoices tabs including the business identifier.

irrespective of the delivery address, the place of supply is always the billing address.
also, if a business has multiple places of business, then as per law they are required to register with a new business identifier for such places. therefore, we will have to create them as a new customer anyway.

the Place of Supply can be on transaction level and the business categorization would be on Customers level.

honestly I am not sure. I have not tested other softwares extensively with regards to how they produce reports. but I will try to dig up something.

i have checked Zoho Books and the said details are entered on a customer level. the place of supply appears on the sales invoice which is editable.

  • Customer tab

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  • Sales Invoice tab

  • GSTR-3B report

@ASEGC1725 i have edited the custom field you created for Inventory Items in a way it could be utilized in report transformations.

Not Sure if this is the right place, is there a way to change the withholding tax calculation on the sub total instead of the total including GST values?

As per the provisions it is supposed to be calculated on the gross value instead of the invoice value which is inclusive of GST. Withholdings tax amount is the work around but using rates would definitely save us some time.