Reverse Charge Accounting for Inward Supply of Goods

Configuring stock item

You can configure the stock items for reverse charge applicability.

To configure your stock item

1.    Go to Gateway of Tally > Stock Items > Alter > select the stock item.

2.    GST Applicable? - Applicable.

3.    Set/alter GST Details? - Yes. In GST Details screen:

●     Taxability - Taxable.

●     Is reverse charge applicable? - Yes. Press F12: Configure and set Enable reverse charge calculation? to Yes.

●     Enter the GST rates.

4.    Press Ctrl+A to save.

Inward Supply of Goods under Reverse Charge

You can create invoices to track the purchase of stock items attracting reverse charge.

To record a purchase entry

1.    Go to Gateway of Tally > Accounting Vouchers > Accounting Vouchers > F9: Purchase.

2.    Enter the details as required.

3.    Click A: Tax Analysis > F1: Detailed to view the detailed Tax Analysis report that displays the reverse charge amount.

4.    Press Escape (Esc) to go back to the purchase voucher.

5.    Press Ctrl+A to save.