Frequently Asked Questions

To set up a vendor for RCM (Reverse Charge Mechanism) expenses in BUSY, follow these steps based on whether the vendor is a registered or unregistered dealer:
 For Unregistered Dealer (No GSTIN):
 1:Go to the Administration section and select Masters.
 2:Click on Account.
 3:Choose Add to enter vendor details like name, alias, and account group.
 4:Select the vendor type as Unregistered and save this master.
 For Registered Dealer (with GSTIN):
 1:Go to the Administration section and select Masters.
 2:Click on Account.
 3:Choose Add to enter vendor details like name, alias, and account group.
 4:Select the vendor type as Registered and save this master.
 By following these steps, you can set up a vendor for RCM expenses in BUSY, depending on whether they have a GSTIN (Goods and Services Tax Identification Number) or not.

for adjust paid RCM with your GST input follow the below steps
 Step 1: Go through the display menu to access the GST report. Select GST summaries and then the GST summary option.
 Step 2: Specify the start and end dates for the report. Additionally, choose other options as required and generate the report.
 Step 3: In the opened report, there should be an option to auto-adjust RCM in input GST. Press F4 for RCM adjustment.
 Step 4: Upon pressing F4, a voucher posting screen will appear. In this screen, select the option for RCM to regular tax adjustment.
 Step 5: Choose the journal voucher series and specify the date for posting the voucher then save voucher 
 step 6 : now adjusted RCM amount appeared in gst summery under section RCM input adjusted.

You can create new RCM entry with 5% rate both from Purchase and payment voucher 
 to make the entries follow the steps 
 1To make purcahse voucher with 5% rate you have to create the item 
 master tax category with 5% and save the master .
 2 you have to select the purchase type RCM unreg for local or central
 where tax type must be under RCM
 3 make other information of voucher and save 
 4 To create payment voucher with RCM 5% rate you have to create 
 a expense ledger which tax category must be 5% and rcm nature should be compulsory
 5 in payment voucher make gst nature as RCM expenses and dr the expense and cr the party or cash or bank
 then save the payment voucher

if you created journal entry for freight forwarding which had RCM expenses then it will be no show automatically in iIGST please follow the below steps 
 Step 1: Post the journal voucher for freight forwarding with the RCM nature. This means you've recorded the transaction involving freight forwarding and accounted for the Reverse Charge Mechanism.
 Step 2: Access the GST miscellaneous utility and open the 'Check/Post Consolidate RCM Payable' option. Select whether you want to view RCM payable on a monthly or daily basis. Choose the relevant month and open the report.
 Step 3: Press F4 or the relevant voucher for posting the consolidated RCM payable voucher. Save the voucher to finalize the posting. After saving, this transaction will reflect in the GST summary report under the IGST (RCM) tax payable section.

If the RCM entries in your GST-3B are showing as zero on the portal, you can try the following steps to fix it:
 1. Check if you have entered the RCM amount correctly in your return.
 2. Ensure that you have selected the correct GST rate and party for the RCM entry.
 3. Verify if the RCM eligible invoice is reflecting in your GST 3B return for the respective period.
 4. If the RCM entry is not reflecting, you may need to manually enter the RCM details in the portal.
 5. Double-check if you have followed the correct process for entering RCM sales entries in your GST returns.
 If the issue persists, it is recommended to reach out to the customer support or helpline of the GST portal for further assistance.

There are four categories for Reverse Charge in BUSY i.e Not Applicable, Based on Daily Limit, Compulsory and Service Import 
It is uses when :
Not Applicable – Select this option, if tax is not applicable under RCM on the expense account.
Based on Daily Limit – Select this option if tax payable under RCM on expense is based on daily expense limit i.e. if daily consolidated expense will be greater than Rs. 5000 then it will be liable for RCM.
Compulsory – Select this option if it is compulsory to pay tax under RCM on the expense account.
Service Import – if the expense account belongs to the services taken from a foreign company. If you select this option then tax under RCM will always be payable on the payment made for this account / expense.

The process to pass RCM entry in BUSY 
 Step 1: Access the transaction menu of the software. Open either a purchase voucher or a journal voucher to begin entering RCM entries.
 Step 2: If entering RCM through a purchase, input relevant details such as the party involved, goods specifics, and GST details within the purchase invoice. Save the invoice after filling in the necessary information.
 Step 3: If entering RCM through a journal entry, specify the GST nature as RCM expenses (B2B) and select the relevant ledger name and GST details.
 Step 4: Upon completing the entry, click on the save option. While saving the voucher, a register expenses screen will appear. Input all relevant details required in this screen related to the expenses being registered under RCM, then save the invoice.

To adjust RCM in input gst , plese follow below steps
 Step 1: Navigate through the display menu to access the GST report. Select GST summaries and then the GST summary option.
 Step 2: Specify the start and end dates for the report. Additionally, choose other options as required and generate the report.
 Step 3: In the opened report, there should be an option to auto-adjust RCM in input GST. Press F4 for RCM adjustment.
 Step 4: Upon pressing F4, a voucher posting screen will appear. In this screen, select the option for RCM to regular tax adjustment.
 Step 5: Choose the journal voucher series and specify the date for posting the voucher then save voucher 
 step 6 : now adjusted RCM amount appeared in gst summery under section RCM input adjusted.

To adjust RCM expenses against GST, then follow below steps :
 Step 1: Navigate through the display menu to access the GST report. Select GST summaries and then the GST summary option.
 Step 2: Specify the start and end dates for the report. Additionally, choose other options as required and generate the report.
 Step 3: In the opened report, there should be an option to auto-adjust RCM in input GST. Press F4 for RCM adjustment.
 Step 4: Upon pressing F4, a voucher posting screen will appear. In this screen, select the option for RCM to regular tax adjustment.
 Step 5: Choose the journal voucher series and specify the date for posting the voucher then save voucher 
 step 6 : now adjusted RCM amount appeared in gst summery under section RCM input adjusted.

for entered RCM entry in BUSY used following steps
 Step 1: Access the transaction menu of the software. Open either a purchase voucher or a journal voucher to begin entering RCM entries.
 Step 2: If entering RCM through a purchase, input relevant details such as the party involved, goods specifics, and GST details within the purchase invoice. Save the invoice after filling in the necessary information.
 Step 3: If entering RCM through a journal entry, specify the GST nature as RCM expenses (B2B) and select the relevant ledger name and GST details.
 Step 4: Upon completing the entry, click on the save option. While saving the voucher, a register expenses screen will appear. Input all relevant details required in this screen related to the expenses being registered under RCM, then save the invoice.