Here’s a detailed guide on recording inward supply of goods and services under the reverse charge mechanism (RCM) in TallyPrime:
1. Configuration:
a) Stock Items:
- For goods under RCM, ensure the “Applicable for Reverse Charge” option is enabled in the stock item master (Gateway of Tally > Create/Alter > Master > Stock Items).
b) Party Ledgers:
- Set the supplier’s ledger account to “Unregistered” or specify the appropriate registration type if known (Gateway of Tally > Create/Alter > Master > Ledgers).
2. Create Purchase Voucher:
- Go to Gateway of Tally > Accounting Vouchers and choose:
- F9: Purchase for intra-state goods or services.
- F10: Other Vouchers > Interstate Purchase – Works Contract for inter-state services.
3. Enter Basic Information:
- Include transaction date, supplier invoice number (if available), and select the supplier’s ledger account.
4. Add Purchase Details:
- Select the relevant purchase ledger for goods or services under RCM.
- Enter quantities and rates.
5. Activate Reverse Charge:
- Click F12: Configure.
- In the Additional Information window, access Set/Alter Tax Details.
- Choose the applicable nature of transaction:
- Purchase – Goods – RCM for intra-state goods.
- Interstate Purchase – Goods – RCM for inter-state goods.
- Purchase – Services – RCM for intra-state services.
- Interstate Purchase – Works Contract for inter-state services.
- Select the Taxable option.
6. Calculate and Specify GST:
- TallyPrime will calculate the taxable value based on entered details.
- You need to manually calculate the applicable CGST and SGST/UTGST rates based on the place of supply and current GST regulations.
- Enter the calculated CGST and SGST/UTGST amounts in their respective fields.
7. Complete the Voucher:
- Select the payment ledger if payment is made.
- Choose the relevant outstanding liability ledger for credit purchases.
- Press Enter to save the voucher.
Additional Notes while Recording Inward Supply of Goods & Services under Reverse Charge Mechanism:
- Use the Narration field to mention “Reverse Charge Applicable” for clarity.
- Maintain proper documentation, including purchase bills and supporting calculations for manual GST entries.
- Reconcile your GST return data with TallyPrime records for accuracy.
Remember:
- The specific steps and settings might vary slightly depending on the type of inward supply (goods vs. services) and interstate/intra-state transactions.
- Always consider professional advice for intricate details and ensuring compliance with current regulations.
By following these steps and adhering to best practices, you can effectively record inward supply under RCM in TallyPrime, maintaining accurate data and fulfilling your GST obligations.
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