Solution of GST Reverse Charge applicability in TallyERP.9

Solution of GST Reverse Charge applicability in TallyERP.9

Recently GST Council abolished GST on 13th October 2017 on purchase from Unregistered dealers, RCM on advance received. Criteria of Reverse Charge as follows:

Above image was tweeted by GST council on applicability of Reverse Charge from 13.10.2017 and mention clearly for RCM applicability on which conditions.

As you know, from 1st july 2017 to 12th October 2017 Reverse Charge is applicable on purchase from unregistered dealer and after that it is not applicable from 13th October 201. So how to change this condition in our Tally Data. 

We have so much query on this for showing reverse charge only before 13th October 2017.

Tally provide solution of this type of condition from beginning of launching of GST enabled software. So the condition will be changed in two conditions 1) Alteration in Stock Item 2) Alteration in Ledger

First condition will be applicable when you purchase Item and having inventory in your books, Inventory of goods will be liable for reverse charge if purchase from Unregistered Dealer. To change the applicability of Reverse Charge as No from 13th October 2017, you need to alter your stock item.

To Change / Alter your stock details go to - Gateway of Tally - Inventory Info - Stock Item - Alter. Select GST Applicable to yes

When you select yes following window appear on your screen to select GST details for specific stock item.

Press Alt + L or click on Right side bar Tax rate history button for view tax rate history of Stock Item.

In above image our Stock Item is under Reverse Charge mechanism till 12th October 2017, but from 13th October 2017 it is under a normal stock category. Now when you pass / create any entry towards purchase from unregistered dealer before 12th October it will goes under reverse charge mechanism, but if you enter / pass entry on or after 13th October 2017 then it will appear in normal purchase and no need to calculate/ pay reverse charge GST on this.

If you do not use inventory and only use ledger wise purchase / sales details, in that case, same method will be applicable on Ledger Alteration.

Click here to download sample data