We have entered the GST era, and there are many aspects of the law that we need to learn and understand. One such aspect of GST is the ‘Reverse Charge’ and handling it in GST Software.
One of the scenarios in which reverse charge is applicable is inward supplies from an Unregistered Dealer
First, let us understand who is an unregistered dealer. An unregistered dealer is someone who is not registered with GST, due to lower threshold limit or any other provision under GST law that does not mandate him to register.
Under GST, a registered person is liable to pay taxes on purchases made from an unregistered dealer. This tax liability is called reverse charge and registered dealers have to pay the tax directly to the department.
A registered dealer can claim input tax against taxable supplies from an unregistered dealer. However, the registered dealer must pay the tax for the purchase before claiming input credit.
Watch our video to get answers to the questions listed below and understand how reverse charge related transactions have been simplified in Tally’s GST-ready Software.
- How to book purchase (inward supplies) from unregistered dealer
- Impact of purchase from unregistered dealer on GSTR 2
- Liability is shown in GSTR 2. How to make a voucher entry to raise it in books of accounts
- How to handle cancellation of purchase from an unregistered dealer
Handling Purchases from Unregistered dealers
Handling cancellation of purchases from unregistered dealers
You can also visit TallyHelp for step by step instructions.
Next, you will see a video blog about How to handle Advance Payments made to Unregistered Dealer.
Learn how to upgrade to Tally’s GST Software here.
Are you GST ready yet?
Source : http://blogs.tallysolutions.com/gst-reverse-charge-purchases-from-unregistered-dealers-in-tally-erp-9-release-6/