How to Manage Reverse Charge Transactions in Tally.ERP 9

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Shailesh Bhatt

23 Comments

  • If freight paid to TRANSPORTER BY US AND GST NOT CHARGED BY TRANSPORTER THEN RCM ENTRY PLEASE IN TALLAY

  • As I understand the RCM is available only on goods or services supplied by URD. What about services like say rent paid to Registered supplier who changed SGST and CGST? How to make entries in tally. Shall it be taken as regular purchase of services? Or RCM entries to be as in services provided by U R D. OK clarify

  • sir i want to know this diesal is a non gst supply to diesal ko gst3br mai show kiya jyega non gst supply mai ya nhi ? agar show kiya jyega to diesal ki entry kaise hogi ?

    • Non-GST products sales to be showcased in GSTR-3B. In the item master you have to configure this as Non-GST product.

    • Yes you have to record these transactions. And they will be visible in GSTR-3B in Table No. 3.1 section b (Outward taxable supplies)zero rated

  • I understand that these questions are best directed at the GST authorities and Tally might not have the proper answer to these. However, since the authorities are overburdened with questions at this time and Tally being a trusted partner and a GST Suvidha Provider, I would request you to please help me out.

    I have the following queries regarding reverse charge mechanism:

    1) With respect to the Rs 5,000 exemption per day for URD purchases, suppose I make various purchases from various un-registered dealers totalling Rs 5,100 in one day, will I be liable to RCM on Rs 100 for that day or for the whole Rs 5,100 for that day?

    2) Do I need to know the HSN code and tax rate of all purchases made from Unregistered dealer, and pay tax accordingly? Some of these items are very small items purchased for daily office use, like soap, toilet cleaner, stationery etc. some of whose purchases are even less than Rs 100 per month and it shall be difficult to ascertain the HSN and tax rate of all such items since it is not my main stock-in-trade.

    3) Can I claim ITC on such RCM paid in the same month? OR Will I have to first deposit tax under RCM in one month and take ITC in the subsequent month?

    4) Do we have to furnish reverse charge as part of GSTR-1 or GSTR-2? As far as I know, GSTR-2 will be auto-populated based on the GSTR-1 filed by my vendors. Now, since my RCM purchases shall be made from un-registered dealers who will not furnish any GSTR-1, how will these be auto-populated? Will there be an option to add RCM purchases to the auto-populated GSTR-2?

    Hoping that Tally, as always, will be able to help me out.

  • मे Lpg गेस डीलर हूँ मेरे पास सिलिँदेर्स देलेवेरी करने हेतु डेलेवेरि मॅन रखे हे वो ग्राहक के यहाँ जाके ग्राहक के नाम का बिल देके डिलेवेरि करते हे मे उनको प्रति cyl डेलेवेरि चार्ज देता हूँ ओर वो चार्ज ऑन अकाउंट्स बुक खर्च मे लेता हूँ तो gst मे मुजे डेलेवेरि चार्ज पे रिवर्स चार्ज लगाना हे या नहीँ ओर gst रिवर्स चार्ज लगाना हे तो कीतना %लगाना हे ओर वो रिवर्स चार्ज मुजे वापस input tex credit मिल सकती हे ओर उसे gstr form मे केसे बताना हे

    • You can adjust your RCM available with your output credit in upcoming return cycle. For details visit help.tallysolutions.com

  • How to define different rate of gst in purchase register.
    For example.
    I purchase clothe which hase gst rate @ 5%
    And making garment means job work charge @ 15%.
    So what should i do for different Gst rate.

    • Please define rates only in ledgers or items. As in your example provide rates in cloth item master.

  • I deal in Glass and there is in house process on Glass like polish grinding the edges. Glass is under GST 28% with HSN code 70.
    I need clarification for edge polish grinding charges done in house, do I charge same 28% or should I charge 18% under service.
    Should I create this under Service.

    Please clarify.

    • Grinding charges is not supply of goods, that is supply of service and that is only normal service not luxurious service. So, the GST rate should be 18% for that.

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