Entry and GSTR3B for Google Invoices

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fnatic fan

26 Points Posted on 19 November 2024

How can I make an entry for the below Google invoice? The invoice mentions that "Tax for this invoice is payable under reverse charge."

Google deducted Rs. 290 from my account. So should I take Rs. 290 + 18% IGST as RCM Entry?

Also, will it come under Import of Services or Inward Supplies liale to Reverse Charge row in Table 4 of GSTR3B?

Attached File : 4000948 20241118190007 google invoice 2 1 1.pdf downloaded: 101 times

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Quick Summary

This discussion explains how to handle Google invoices where tax is payable under the reverse charge mechanism (RCM). It details the accounting entry, including calculating the IGST liability and crediting the bank for the deducted amount. The guide also clarifies that these supplies should be reported under 'Inward Supplies liable to Reverse Charge' and classified as 'Import of Services' in Table 4 of your GSTR-3B.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 19 November 2024

Here's how you can make the entry:

1. Calculate the tax amount: Rs. 290 (deducted amount) + 18% IGST = Rs. 290 + Rs. 52.20 (IGST) = Rs. 342.20

2. RCM Entry: Debit GST liability (IGST) Rs. 342.20

3. Credit Bank/Cash Rs. 290 (since Google deducted this amount)

4. In Table 4 of GSTR-3B, report this under "Inward Supplies liable to Reverse Charge" row.

5. Select "Import of Services" as the nature of supply. Note: Consult a tax professional or chartered accountant to ensure accuracy and compliance with GST regulations. Remember, reverse charge means the recipient (you) is liable to pay tax on the supply, so you'll need to account for the tax and report it accordingly in your GSTR-3B return.