fix: ITC Classification Refactor for GST Purchase Register Report (#2557

)

<sub><a href="https://huly.app/guest/resilienttech?token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJsaW5rSWQiOiI2NmM4MjhmZDhjMmMxOTBhN2E1YWRhNmQiLCJndWVzdCI6InRydWUiLCJlbWFpbCI6IiNndWVzdEBoYy5lbmdpbmVlcmluZyIsIndvcmtzcGFjZSI6Inctc21pdHZvcmEyMDMtcmVzaWxpZW50dGVjLTY2N2U0MjkxLWEwNWMwNjY4N2EtNjM4MjY3IiwicHJvZHVjdElkIjoiIn0.QCr1VM9atI846CC1t3JpHzs8jP1iI9dbKKRPlEg1ldo">Huly&reg;: <b>IC-2675</b></a></sub>

(cherry picked from commit c099283)

india_compliance/gst_india/client_scripts/purchase_invoice.js

@@ -18,6 +18,10 @@ frappe.ui.form.on(DOCTYPE, {
         });
     },
 
+    onload: toggle_reverse_charge,
+
+    gst_category: toggle_reverse_charge,
+
     after_save(frm) {
         if (
             frm.doc.supplier_address ||
@@ -84,3 +88,19 @@ frappe.ui.form.on(DOCTYPE, {
         }, 2000);
     },
 });
+
+frappe.ui.form.on("Purchase Invoice Item", {
+    item_code: toggle_reverse_charge,
+
+    items_remove: toggle_reverse_charge,
+});
+
+function toggle_reverse_charge(frm) {
+    let is_read_only = 0;
+    if (frm.doc.gst_category !== "Overseas") is_read_only = 0;
+    // has_goods_item
+    else if (frm.doc.items.some(item => !item.gst_hsn_code.startsWith("99")))
+        is_read_only = 1;
+
+    frm.set_df_property("is_reverse_charge", "read_only", is_read_only);
+}

india_compliance/gst_india/constants/custom_fields.py

@@ -994,6 +994,7 @@
             ),
             "default": "All Other ITC",
             "translatable": 0,
+            "read_only": 1,
         },
         {
             "fieldname": "ineligibility_reason",

india_compliance/gst_india/overrides/purchase_invoice.py

@@ -86,6 +86,7 @@ def is_b2b_invoice(doc):
 def update_itc_totals(doc, method=None):
     # Set default value
     set_itc_classification(doc)
+    validate_reverse_charge(doc)
 
     # Initialize values
     doc.itc_integrated_tax = 0
@@ -111,19 +112,22 @@ def update_itc_totals(doc, method=None):
 
 
 def set_itc_classification(doc):
-    default_classification = "All Other ITC"
-    reverse_charge_classification = "ITC on Reverse Charge"
+    if doc.gst_category == "Overseas":
+        for item in doc.items:
+            if not item.gst_hsn_code.startswith("99"):
+                doc.itc_classification = "Import Of Goods"
+                break
+        else:
+            doc.itc_classification = "Import Of Service"
 
-    if doc.is_reverse_charge:
-        doc.itc_classification = reverse_charge_classification
-        return
+    elif doc.is_reverse_charge:
+        doc.itc_classification = "ITC on Reverse Charge"
 
-    elif doc.itc_classification == reverse_charge_classification:
-        doc.itc_classification = default_classification
-        return
+    elif doc.gst_category == "Input Service Distributor" and doc.is_internal_transfer():
+        doc.itc_classification = "Input Service Distributor"
 
-    if not doc.itc_classification:
-        doc.itc_classification = default_classification
+    else:
+        doc.itc_classification = "All Other ITC"
 
 
 def validate_supplier_invoice_number(doc):
@@ -252,3 +256,10 @@ def set_ineligibility_reason(doc, show_alert=True):
             alert=True,
             indicator="orange",
         )
+
+
+def validate_reverse_charge(doc):
+    if doc.itc_classification != "Import Of Goods" or not doc.is_reverse_charge:
+        return
+
+    frappe.throw(_("Reverse Charge is not applicable on Import of Goods"))

india_compliance/gst_india/overrides/test_purchase_invoice.py

@@ -0,0 +1,60 @@
+import frappe
+from frappe.tests.utils import FrappeTestCase, change_settings
+from erpnext.accounts.doctype.account.test_account import create_account
+
+from india_compliance.gst_india.utils.tests import append_item, create_purchase_invoice
+
+
+class TestPurchaseInvoice(FrappeTestCase):
+    @change_settings("GST Settings", {"enable_overseas_transactions": 1})
+    def test_itc_classification(self):
+        pinv = create_purchase_invoice(
+            supplier="_Test Foreign Supplier",
+            do_not_submit=1,
+            item_code="_Test Service Item",
+        )
+        self.assertEqual(pinv.itc_classification, "Import Of Service")
+
+        append_item(pinv)
+        pinv.save()
+        self.assertEqual(pinv.itc_classification, "Import Of Goods")
+
+        pinv = create_purchase_invoice(
+            supplier="_Test Registered Supplier",
+            is_reverse_charge=1,
+            do_not_submit=1,
+        )
+        self.assertEqual(pinv.itc_classification, "ITC on Reverse Charge")
+
+        pinv.is_reverse_charge = 0
+        pinv.save()
+        self.assertEqual(pinv.itc_classification, "All Other ITC")
+
+        company = "_Test Indian Registered Company"
+        account = create_account(
+            account_name="Unrealized Profit",
+            parent_account="Current Assets - _TIRC",
+            company=company,
+        )
+
+        frappe.db.set_value(
+            "Company", company, "unrealized_profit_loss_account", account
+        )
+        pinv = create_purchase_invoice(
+            supplier="Test Internal with ISD Supplier",
+            qty=-1,
+            is_return=1,
+        )
+        self.assertEqual(pinv.itc_classification, "Input Service Distributor")
+
+        pinv = create_purchase_invoice(
+            supplier="_Test Foreign Supplier",
+            do_not_save=1,
+            is_reverse_charge=1,
+        )
+
+        self.assertRaisesRegex(
+            frappe.exceptions.ValidationError,
+            "Reverse Charge is not applicable on Import of Goods",
+            pinv.save,
+        )

india_compliance/gst_india/report/gstr_3b_details/gstr_3b_details.py

@@ -197,7 +197,7 @@ def get_itc_from_boe(self):
                 ).as_("csamt"),
                 LiteralValue(0).as_("camt"),
                 LiteralValue(0).as_("samt"),
-                ConstantColumn("Import of Goods").as_("itc_classification"),
+                ConstantColumn("Import Of Goods").as_("itc_classification"),
             )
             .where(
                 (boe.docstatus == 1)

india_compliance/gst_india/utils/tests.py

@@ -52,12 +52,6 @@ def create_transaction(**data):
         if not transaction.supplier:
             transaction.supplier = "_Test Registered Supplier"
 
-        if (
-            transaction.doctype == "Purchase Invoice"
-            and not transaction.itc_classification
-        ):
-            transaction.itc_classification = "All Other ITC"
-
     if transaction.doctype == "POS Invoice":
         transaction.append(
             "payments",

india_compliance/patches.txt

@@ -4,7 +4,7 @@ india_compliance.patches.v15.remove_duplicate_web_template
 
 [post_model_sync]
 india_compliance.patches.v14.set_default_for_overridden_accounts_setting
-execute:from india_compliance.gst_india.setup import create_custom_fields; create_custom_fields() #56
+execute:from india_compliance.gst_india.setup import create_custom_fields; create_custom_fields() #57
 execute:from india_compliance.gst_india.setup import create_property_setters; create_property_setters() #8
 execute:from india_compliance.income_tax_india.setup import create_custom_fields; create_custom_fields() #1
 india_compliance.patches.post_install.remove_old_fields #2

india_compliance/tests/test_records.json

@@ -231,6 +231,20 @@
             "gstin": "05AAACG2140A1ZL",
             "gst_category": "Registered Regular",
             "is_transporter": 1
+        },
+        {
+            "supplier_name": "Test Internal with ISD Supplier",
+            "name": "Test Internal with ISD Supplier",
+            "supplier_type": "Company",
+            "gstin": "24AABCR6898M1ZN",
+            "gst_category": "Input Service Distributor",
+            "is_internal_supplier": 1,
+            "represents_company": "_Test Indian Registered Company",
+            "companies": [
+                {
+                    "company": "_Test Indian Registered Company"
+                }
+            ]
         }
     ],
     "Address": [