To update your party ledger
Go to Gateway of
Creating a ledger for purchases from unregistered dealer
This ledger is to account for the purchases transactions from unregistered dealers.
To create a ledger for purchases from unregistered dealer
In the stock item master attracting the reverse charge, set the option Enable reverse charge calculation? to Yes in the Configuration screen of GST Details screen (displayed on enabling the option Set/alter GST details? in the stock item or ledger master).
Recording a purchase from unregistered dealer
Create a new bill reference when you are purchasing the goods from an unregistered dealer and then making a payment. If you have made an advance payment, then you can adjust it against the purchase invoice.
You can create invoices to track reverse charge transactions for unregistered dealers, by creating a new voucher type with a separate series of voucher numbers, and record the purchase invoices. In the Voucher Printing screen, you can click F12: Configure and set the options as required to print the self-invoice.
To record a purchase entry
Link the bill reference of the payment voucher (by selecting Against Ref in the Bill-wise Details screen) to the purchase invoice, if you have made an advance payment.
Recording a journal voucher to raise tax liability and claim tax credit
Click F2: Date and change the voucher date as required.
Recording an advance payment to unregistered dealer
When you make an advance payment to an unregistered dealer for goods due to be received on a future date, you can record an advance payment voucher.
To record an advance payment
Note: Payment vouchers recorded without clicking V: Reverse Chrg. Adv. will not have GST implications, and will form part of the Summary of Excluded Vouchers.
If the stock item being purchased from unregistered dealer does not attract reverse charge, do not configure the stock item for reverse charge. Select the ledger configured for reverse charge in the Advance Payment Details screen.
Note: To categorise and display the stock item or ledgers attracting reverse charge in the Advance Payment Details screen, set the option Enable reverse charge calculation? to Yes in the Configuration screen of GST Details screen (displayed on enabling the option Set/alter GST details? in the stock item or ledger master).
The tax type appears as integrated tax or central tax and state tax, based on the state selected for the party ledger.
Recording a journal voucher to raise liability for reverse charge on advance payments
When an advance payment is made to a unregistered dealer, the liability due under reverse charge gets captured in the GSTR-2 report.
To view the reverse charge amount in GSTR-2
To record a journal voucher to raise liability on advance payment from GSTR-2
Recording a journal voucher to reverse the tax liability raised for purchases from an unregistered dealer to claim tax credit
When you have made the advance payment in previous period current period, you can view the transaction details in GSTR-2
and created the purchase invoice in the report.
You can claim the tax paid on purchases from unregistered dealer as tax credit by recording a journal voucher, and can view the tax credit claimed in GSTR-2.
To view the tax liability under reverse charge in GSTR-2
Claim tax credit when the advance amount paid matches with the purchase value
To claim tax credit on the purchases from unregistered dealer
Claim tax credit on the purchases from unregistered dealer when the purchase value exceeds the advance amount paid
Example: Consider the transactions recorded in the following sequence.
To record a journal voucher to raise a liability and account for tax credit in the same voucher
To view the tax credit claimed on reverse charge liability in GSTR-2
Accounting for cancellation of purchases after advance payments under reverse charge
If you cancel a purchase order after advance payment to an unregistered dealer, you can reverse the liability on cancellation of purchase.
If the order cancellation is done in the same month, you need to exclude the advance payment voucher
from GSTR-2. Otherwise, reverse the liability on cancellation.
To exclude an advance payment voucher from GSTR-2
To reverse the liability on cancellation of purchase
Purchase Returns under reverse charge
Consider a purchase invoice recorded for purchase from unregistered dealer as shown below:
The tax liability gets calculated and displayed in the Tax Analysis screen (click A: Tax Analysis in the above purchase invoice) as shown below:
Record a journal voucher, to raise the liability and claim credit on the tax calculated in the Tax Analysis screen of the above purchase invoice, as shown below:
When the purchase returns happens either partially or fully after filing returns, record a debit note to
reverse the transaction to the extent of goods returned.
To record a debit note
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9. If the purchase returns happens partially, record the debit note to the extent it is reversed as shown below:
The tax liability gets calculated and displayed in the Tax Analysis screen (click A: Tax Analysis in the above debit note) as shown below:
Record a journal voucher to reverse the liability and tax credit claimed in the previous month to the extent it is returned.
To record a journal voucher to reverse the tax liability and input tax credit