ERPNext India / GST
What is Input Tax Credit (ITC) in ERPNext?
- Input Tax Credit (ITC) in ERPNext
- Input Tax Credit (ITC) in ERPNext tracks GST paid on purchases that can be offset against GST collected on sales, reducing the net GST payable.
ITC Tracking in ERPNext
GST on submitted Purchase Invoices flows into the "GST Input Tax Credit" account (an asset account). When GSTR-3B is filed, ITC claimed reduces the GST payable. The GST Balance Report in ERPNext shows total output tax, input tax, and net liability at any point in time.
ITC Eligibility and GSTR-2B Matching
ITC can only be claimed on valid, supplier-filed invoices reflected in GSTR-2B. The India Compliance app's GSTR-2B Reconciliation tool matches your purchase invoices against GSTR-2B data from the portal, flagging invoices where ITC cannot be claimed yet.
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