https://help.tallysolutions.com/docs/te9rel65/Tax_India/gst/reverse_charge_on_sales.htm

Record Outward Supply | GST Reverse Charge (RCM)

Related Topics

Inward Supplies

Import of Services

Deemed Exports

Advance Payments

Inward Supply from Unregistered Dealers

Related Reports

GSTR-1

GSTR-3B

GST Annual Computation

GST classifies some services as reverse chargeable, and the buyer is liable to pay tax. When you record sales of such services, you can view the tax liability of the buyer in the invoice. These sales transactions are captured in the B2B invoices section of the GSTR-1 report. As reverse charge does not apply on supplies made to consumers or unregistered dealers, you can change the taxability while recording the invoice. Such invoices will appear as B2C transactions in GST Annual Computation .

On this page

Configure sales ledger

Sales of reverse chargeable services

Sales to registered dealers

Sales to consumers or unregistered dealers

Sales using the nature of transaction - Sales to Consumer - Taxable

Configure Sales Ledger

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > select the sales ledger.

2. GST applicability.

o Is GST Applicable? - Applicable .

o Set/alter GST details? - Yes .

3. GST Details.

o Press F12: Configure and set Enable reverse charge calculation? to Yes .

o Taxability - Taxable .

o Is reverse charge applicable? - Yes .

o Enter the GST rates.

Note: If you create a reverse chargeable service as a stock item, set the option Is reverse charge applicable? to Yes in the GST Details screen.

4. Accept the ledger.

Sales of Reverse Charge Supplies to Registered Dealers

Record sales transaction and view the tax liability of the buyer .

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. Select the party name.

3. Select the sales ledger enabled for reverse charge.

o Click A : Tax Analysis to view the tax liability of the buyer under reverse charge.

o Press Esc to go back to the sales invoice.

4. Save the invoice.

If you have created services as stock items, record the transaction in item invoice mode by selecting the stock item.

A printed accounting invoice is shown below. Tax amount is shown with the indication that it is subject to reverse charge.

View the Tax Liability of the Buyer

1. Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1 .

2. Press Enter on B2B Invoices . The Voucher Register displays the reverse charge liability of buyer.

Sales of Reverse Charge Supplies to unregistered dealers or consumers

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. Press F12 and set the options as given below:

Use common ledger account for item allocation - No (for item invoice).

Allow modification of tax details for GST - Yes .

3. Select cash/bank (for consumer) or party ledger with registration type set to Unregistered .

4. Select the goods or services under reverse charge.

For item invoice, select the stock item enabled for reverse charge applicability.

For accounting invoice, select the sales ledger enabled for reverse charge applicability.

5. In the GST Details screen of sales ledger:

Press F12 and set the option Allow override reverse charge applicability to Yes .

Set the option Is reverse charge applicable to No .

Accept the Tax Classification Details and return to the sales invoice.

6. Select the GST ledgers.

7. Accept the sales invoice.

To view the transaction in GST Annual Computation , go to Gateway of Tally > Display > Statutory Reports > GST > GST Annual Computation . The transaction appears as shown below:

Sales of Reverse Charge Supplies using nature of transaction - 'Sales to Consumer - Taxable'

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. Press F12 and set the options as given below:

Use common ledger account for item allocation - No (for item invoice).

Allow modification of tax details for GST - Yes .

3. Select cash/bank (for consumer) or party ledger with registration type set to Unregistered .

4. Select the goods or services under reverse charge.

For item invoice, select the stock item enabled for reverse charge applicability.

For accounting invoice, select the sales ledger in which the:

o Nature of transaction is set to Sales to Consumer - Taxable .

o Option Is reverse charge applicable is set to Yes .

5. In the GST Details screen of sales ledger:

Press F12 and enable the options as shown below:

Set the option Is reverse charge applicable to No .

Accept the Tax Classification Details and return to the sales invoice.

6. Select the GST ledgers.

7. Accept the sales invoice.

To view the transaction in GST Annual Computation , go to Gateway of Tally > Display > Statutory Reports > GST > GST Annual Computation . The transaction appears as shown below: