Query
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 August 2017
hi,
we purchase stationery material at the rate of 18% and we have item head stationery item and put all the item in stationery item.
now we are purchasing stationery item at the rate of 12 percent so by what name we can create other head because our ERP does not take same name head
we purchase stationery material at the rate of 18% and we have item head stationery item and put all the item in stationery item.
now we are purchasing stationery item at the rate of 12 percent so by what name we can create other head because our ERP does not take same name head
10 August 2017
You can make it "printing & stationery". or just "Stationery -12%"
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 October 2017
hi if unit 1 transporter bill is booked in other unit and rcm payament under gst for the same is made then how to rectify?? please reply at earliest
10 August 2024
### 1. **Creating New Heads for Different GST Rates**
In your ERP system, if you are dealing with stationery items purchased at different GST rates (18% and 12%), you should create separate heads for each GST rate to accurately reflect the tax treatment. Here’s how you can handle this:
1. **Create Separate Heads:**
- **For 18% GST:** Use the existing head "Stationery Items" or create a new head called "Stationery Items (18% GST)" if you need to differentiate based on the tax rate.
- **For 12% GST:** Create a new head such as "Stationery Items (12% GST)" to account for the different GST rate.
2. **Naming Convention:**
- Use clear and descriptive names that indicate the GST rate. For example:
- **"Stationery Items (18% GST)"**
- **"Stationery Items (12% GST)"**
3. **Update ERP System:**
- If your ERP system does not accept the same name head for different GST rates, ensure that you create distinct names for each GST rate category to comply with GST accounting requirements.
### 2. **Rectifying Incorrect Booking of Transporter Bills and RCM Payment**
If you have booked a transporter bill in the wrong unit and the Reverse Charge Mechanism (RCM) payment under GST has been made incorrectly, you need to follow these steps to rectify the situation:
1. **Reverse the Incorrect Entry:**
- **Identify Incorrect Booking:** Locate the entry where the transporter bill was incorrectly booked in the wrong unit.
- **Reverse the Entry:** Make a reversing entry or journal entry to correct the mistake. This will ensure that the transporter expense and RCM payment are not duplicated or incorrectly recorded.
2. **Rebook in the Correct Unit:**
- **Correct Unit:** Rebook the transporter bill in the correct unit where the expense should be recorded.
- **Adjust RCM Payment:** Ensure that the RCM payment is correctly accounted for in the GST records of the appropriate unit.
3. **Adjust GST Records:**
- **Update GST Returns:** Ensure that the GST returns reflect the corrected entries. You may need to update the GST return for the period in which the mistake occurred.
- **Reconcile GST Accounts:** Reconcile your GST accounts to confirm that the RCM payment and credit have been accurately recorded.
4. **Consult with GST Professionals:**
- **Seek Professional Advice:** If the correction involves significant amounts or complex adjustments, it is advisable to consult with a GST professional or tax consultant. They can help ensure that the rectification is done in compliance with GST regulations.
### Summary
1. **Stationery Items with Different GST Rates:**
- Create separate heads for each GST rate, such as "Stationery Items (18% GST)" and "Stationery Items (12% GST)," to accurately record and report the tax.
2. **Rectifying Incorrect Transporter Bill Booking and RCM Payment:**
- Reverse the incorrect entry, rebook the transporter bill in the correct unit, adjust the GST records, and consult with GST professionals if needed.
These steps will help ensure accurate financial records and compliance with GST regulations.
In your ERP system, if you are dealing with stationery items purchased at different GST rates (18% and 12%), you should create separate heads for each GST rate to accurately reflect the tax treatment. Here’s how you can handle this:
1. **Create Separate Heads:**
- **For 18% GST:** Use the existing head "Stationery Items" or create a new head called "Stationery Items (18% GST)" if you need to differentiate based on the tax rate.
- **For 12% GST:** Create a new head such as "Stationery Items (12% GST)" to account for the different GST rate.
2. **Naming Convention:**
- Use clear and descriptive names that indicate the GST rate. For example:
- **"Stationery Items (18% GST)"**
- **"Stationery Items (12% GST)"**
3. **Update ERP System:**
- If your ERP system does not accept the same name head for different GST rates, ensure that you create distinct names for each GST rate category to comply with GST accounting requirements.
### 2. **Rectifying Incorrect Booking of Transporter Bills and RCM Payment**
If you have booked a transporter bill in the wrong unit and the Reverse Charge Mechanism (RCM) payment under GST has been made incorrectly, you need to follow these steps to rectify the situation:
1. **Reverse the Incorrect Entry:**
- **Identify Incorrect Booking:** Locate the entry where the transporter bill was incorrectly booked in the wrong unit.
- **Reverse the Entry:** Make a reversing entry or journal entry to correct the mistake. This will ensure that the transporter expense and RCM payment are not duplicated or incorrectly recorded.
2. **Rebook in the Correct Unit:**
- **Correct Unit:** Rebook the transporter bill in the correct unit where the expense should be recorded.
- **Adjust RCM Payment:** Ensure that the RCM payment is correctly accounted for in the GST records of the appropriate unit.
3. **Adjust GST Records:**
- **Update GST Returns:** Ensure that the GST returns reflect the corrected entries. You may need to update the GST return for the period in which the mistake occurred.
- **Reconcile GST Accounts:** Reconcile your GST accounts to confirm that the RCM payment and credit have been accurately recorded.
4. **Consult with GST Professionals:**
- **Seek Professional Advice:** If the correction involves significant amounts or complex adjustments, it is advisable to consult with a GST professional or tax consultant. They can help ensure that the rectification is done in compliance with GST regulations.
### Summary
1. **Stationery Items with Different GST Rates:**
- Create separate heads for each GST rate, such as "Stationery Items (18% GST)" and "Stationery Items (12% GST)," to accurately record and report the tax.
2. **Rectifying Incorrect Transporter Bill Booking and RCM Payment:**
- Reverse the incorrect entry, rebook the transporter bill in the correct unit, adjust the GST records, and consult with GST professionals if needed.
These steps will help ensure accurate financial records and compliance with GST regulations.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- SALARY CAN BE CAPITALIZE
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Non filing of I T Returns
- TDS on Fixed Assets purchased
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
