ITC Reversals
Review and manage pending ITC reversals for expired stock, charity, personal use, and other cases where input tax credit must be reversed.
The ITC Reversals page lists every pending Input Tax Credit (ITC) reversal that MediFlux has detected. You can mark items as not applicable or reverse the credit so your GST liability stays accurate.
Navigate here from the sidebar: Accounting → ITC Reversals.
ITC Reversals
Pending ITC reversal lines with type, value, CGST, SGST, IGST, and actions.
What is ITC reversal?
When you buy medicines or goods, you pay GST to the supplier. That GST is your Input Tax Credit (ITC). You can normally use it to reduce the GST you collect from customers.
Sometimes you are not allowed to keep that credit. In those cases the law requires you to reverse the ITC. This means you add the credit back to your GST liability (you effectively pay it back to the government).
Common situations in a pharmacy where ITC must be reversed:
MediFlux automatically detects these cases (especially from stock adjustments, expired stock write-offs, and certain debit notes) and adds them to this page as Pending lines so you can review and act on them.
Summary cards
Three cards at the top show the current state of the list.
Summary cards
Pending Lines, Total GST Value, and Selected GST Value.
Understanding the table
ITC Reversals table
Date, Type, Value, CGST, SGST, IGST, Status, and row actions.
What you can do
Reverse a single line
Click Reverse on any row. MediFlux creates the necessary journal entry that reverses the ITC (debiting the appropriate GST expense/reversal account and crediting the Input GST accounts). The line is then removed from the pending list.
Mark a line as N/A
Click Mark N/A if the line should not be reversed (for example, the stock was later sold, or the detection was incorrect). The line is cleared from the pending list without creating a reversal entry.
Bulk actions
You can also check individual boxes and then use the bulk buttons if they support selected rows.
Row and bulk actions
Mark N/A and Reverse on each row, plus Mark all N/A and Reverse all at the top.
Example pending lines
In this example the Total GST Value is ₹1,211.44 (sum of all CGST + SGST).
How the reversal works in the books
When you click Reverse:
- MediFlux calculates the GST amounts (CGST, SGST, or IGST) that were originally claimed as ITC.
- It posts a journal entry that:
- Debits an ITC reversal / GST expense account
- Credits the Input GST accounts (GST Input CGST, GST Input SGST, or GST Input IGST)
- Your net ITC balance decreases and your GST liability increases by the same amount.
- The line disappears from the ITC Reversals pending list.
This keeps your GSTR-3B and other GST returns accurate.
Common mistakes
Leaving expired stock reversals pending
Expired medicines are one of the most common reasons for ITC reversal in pharmacies. Leaving them in Pending status for a long time can cause your GST returns to understate liability.
Reversing lines that should be Mark N/A
Only reverse lines that genuinely require ITC reversal. If stock was later sold or the detection is wrong, use Mark N/A instead of Reverse.