Reverse charge mechanism

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2018 Actually I FILE THE GSTR 3B AND HAD TAKE REVERSE CHARGE AMOUNT ONLY ON OUTPUT AND HAD TAKE INPUT ON NEXT MONTH SO I WANT TO KNOW THAT WHAT SHOULD BE THE ENTRIES WILL I PASS IN TALLY SO THAT GSTR3B WILL SHOW ONLY OUTPUT FOR THAT MONTH AND INPUT FOR NEXT MONTH........ PLEASE REPLY ASAP...

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

14 June 2018 Input tax credit on RCM can be taken in the same month for which the tax is paid. No need to postpone for next month.
Nevertheless, if you wish to take credit in next month, separate control ledger can be maintained for RCM input tax credit (receivable).

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Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2018 COULD YOU PLEASE JUSTIFY THE PROPER ENTRIES STEP BY STEP ,, SO THAT I WILL ENTER THOSE ENTRIES......

RAJA P M

RAJA P M (Expert)

14 June 2018 Ex: If You are paid RCM-Tax for GTA @ 5%... (1000 * 5 = 50/2)

Prepare a Ledger named as "In/Decrease Tax Liability - GTA" (It's only for understandings, You can create yourself for your best view)

At the time of Liability :

Dr. In/Decrease Tax Liability GTA - 50
Cr. Output CGST A/c - 25
Cr. Output SGST A/c - 25
Now Your output Liability is increased. You will be pay Cash Payment and Liability is Closed at the Time of payment...

At the time of ITC :

Dr. Output CGST A/c - 25
Dr. Output SGST A/c - 25
Cr. In/Decrease Tax Liability GTA - 50

Now Your ITC will be increased you can adjust the same in Your Output Tax...
Also the "In/Decrease Tax liability GTA ledger will be Zero...

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