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?
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.
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.
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.
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