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Record Deemed Exports and High Seas Sales | GST Reverse Charge (RCM)

Transactions with businesses manufacturing goods for export are reverse chargeable. These transactions can be interstate or intrastate. All sales transactions and tax liability appear under GSTR-1 and GSTR-3B. You can also record deemed exports and high seas sales in TallyPrime using nature of transactions provided for deemed exports.

 

Set Up to Record Deemed Exports and High Seas Sales Transactions

  1. GST details of party.
    • Consider Party as Deemed Exporter for Purchases – Yes for supplier.
    • Party TypeDeemed Export for supplier and buyer.
  2. GST details of stock item.
    • Is reverse charge applicable – Yes.
  3. GST details of sales and purchase ledgers.
    • Is reverse charge applicableYes to use the following natures of transaction.
      • Purchase – Intrastate Purchase Deemed ExportsTaxable and Purchase Deemed Exports – Taxable.
      • Sales – Deemed Exports Taxable and Intrastate Deemed Exports Taxable.

 

Record Deemed Export Purchases

Intrastate deemed export attract central tax and state tax under reverse charge. Interstate deemed export purchases attract integrated tax under reverse charge. Use the relevant natures of transaction for interstate and intrastate purchases.

  1. Gateway of Tally > Vouchers > press F9 (Purchase).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
  2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  3. For Party A/c name, select the party ledger with Party type set to Deemed Export.
  4. Select the purchase ledger with the:
    • Nature of transaction set to Intrastate Purchase Deemed Exports – Taxable.
    • Option Is reverse charge applicable set to Yes.
  5. Select the stock item.
    Note: In the GST Details screen of the invoice, the option Is reverse charge applicable appears as set in the master, and the same configuration appears in brackets for reference. You can change this while recording the invoice, if required.
  6. Press Ctrl+O (Related Reports) > type or select GST – Tax Analysis to view the tax details.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select GST – Tax Analysis to view the tax details.

    Press Alt+F5 (Detailed) to view the reverse charge amount.
  7. Press Esc to return to the purchase invoice.
  8. Press Enter to save.

In the interstate purchase invoice

  • Select the purchase ledger enabled for reverse charge applicability, with nature of transaction Purchase Deemed Exports – Taxable
  • Select the stock item enabled for reverse charge applicability.
  • Press Ctrl+O (Related Reports) > type or select GST – Tax Analysis to view the tax details.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select GST – Tax Analysis to view the tax details.

    Press Alt+F5 (Detailed) to view the reverse charge amount.
  • Press Esc to return to the purchase invoice.
  • Press Enter to save.

 

Record Deemed Export Sales

Intrastate deemed export sales attract central tax and state tax under reverse charge. Interstate deemed export sales attract integrated tax under reverse charge. Use the relevant natures of transaction for interstate and intrastate sales. You can also record high seas sales using nature of transactions provided for deemed exports.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  3. For Party A/c name, select the party ledger with Party type set to Deemed Export.
  4. Select the sales ledger with the:
    • Nature of transaction set to Intrastate Deemed Exports Taxable.
    • Option Is reverse charge applicable set to Yes.
  5. Select the stock item.
    Note: In the GST Details screen of the invoice, the option Is reverse charge applicable appears as set in the master, and the same configuration appears in brackets for reference. You can change this while recording the invoice, if required.
  6. Press Ctrl+O (Related Reports) > type or select GST – Tax Analysis to view the tax details.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select GST – Tax Analysis to view the tax details.

    Press Alt+F5 (Detailed) to view the reverse charge amount.
  7. Press Esc to return to the sales invoice.
  8. Press Enter to save.

In the interstate sales invoice

  • Select the sales ledger enabled for reverse charge applicability, with nature of transaction Deemed Exports Taxable
  • Select the stock item enabled for reverse charge applicability.
  • Press Ctrl+O (Related Reports) > type or select GST – Tax Analysis to view the tax details.

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    Press Ctrl+I (More Details) > type or select GST – Tax Analysis to view the tax details.

    Press Alt+F5 (Detailed) to view the reverse charge amount.
  • Press Esc to return to the sales invoice.
  • Press Enter to save.

 

View Deemed Exports in GSTR-1

  1. Gateway of Tally > Display More Reports > GST Reports > GSTR-1.
    Alternatively, press Alt+G (Go To) > type or select GSTR-1 > and press Enter.
  2. Press F5 (Nature view) > Alt+F5 (Detailed).

View Deemed Exports in GSTR-3B

  1. Gateway of Tally > Display More Reports > GST Reports > GSTR-3B.
    Alternatively, press Alt+G (Go To) > type or select GSTR-3B > and press Enter.
  2. Press F5 (Nature view) > Alt+F5 (Detailed).

Record Adjustments

  1. Gateway of Tally > Display More Reports > GST Reports > GSTR-3B.
    Alternatively, press Alt+G (Go To) > type or select GSTR-3B > and press Enter.
  2. Press F5 (Return view).
  3.  Select Reverse Charge Inward Supplies and press Enter.
  4. Press Alt+J (Stat Adjustment) to record the journal voucher with the stat adjustment details.
  5. Debit and credit the tax ledgers. Enter the GST Rate and Taxable Value for each tax ledger.

    After recording the journal, the reverse charge liability report appears as shown below:

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