Frequently Asked Questions

RCM is a Reverse charge is a mechanism where the recipient of the goods or services is liable to pay Goods and Services Tax (GST) instead of the supplier.
Pls Follow the Below Steps :
Step 1: Open the Expense Account Master from Masters Under Administration
Step 2: In Expense Account, Select GST Type - GST Applicable
Step 3: Mention the Tax Category, HSN Code, ITC Eligibility and RCM Nature - Either Compulsory or Service Import.
Step 4: Pass the Rcm voucher through Journal or payment with RCM -Gst Nature
Step 5: From Transactions then GST Misc Utilties Pass the RCM Consolidated Voucher through F4.

Step 1: While doing expense entry under RCM if showing IGST instead of CGST and SGST. You need to check party account state selected. 
 Step 2: to fix this issue It is essential for the party's state and your company's state to be the same for CGST and SGST to be applicable. CGST is levied by the central government, and SGST is levied by the state government in the same state. If your company and the party are in different states, IGST will be applicable instead. 
 Step 3: Modify party account and Correct the state Mismatches.

To find the option RCM Purchase you need to follow the steps 
 Step1 open company in BUSY and go to transaction menu 
 Step2 click on purchase and then click add
 Step3 select Purchase type Lgst Unreg RCM or create a purchase type for RCM but need to ensure 
 that purchase type Tax type must be under RCM Unreg and the region central or local as per your requirement
 Step4 enter all nessecery details of purchase voucher and need to ensure item master Tax category given 
 in item master 
 step5 save the purchase voucher

You can pass RCM entries with purchase voucher entry. Kindly follow the following Steps:
 Step 1: Go to transactions Menu click on Purchase voucher option.
 Step 2: Under Purchase voucher click on Add.
 Step 3: In Purchase voucher header select Series name, date, vch no. type.
 Step 4: Select Purchase Type: Local-RCM / UnReg or Service Import-RCM or as required.
 Step 5: Select ITC Eligibility: Input Goods/Services and will get option for reverse charge: Compulsory or Service Import as required.
 Step 6: Enter item details qty & price and general purchase entry details.
 Step 7: Save Purchase Vouchers.

To register a new vendor in BUSY, you can follow these steps:
 1. Open BUSY and go to the "Masters" menu.
 2. Select "Accounts" and then choose "Sundry Creditors" or "Sundry Debtors" depending on the type of vendor you want to register.
 3. Click on the "Add" button to create a new vendor.
 4. Fill in the required details such as vendor name, address, contact information, and GSTIN (if applicable).
 5. Save the vendor details by clicking on the "Save" button.
 6. The new vendor is now registered in BUSY and can be used for recording transactions.

To record advance payment to supplier with rcm in BUSY you need to go to payment 
 voucher select date series voucher number then debit the RCM supplier and Credit
 cash or bank and select ref as new 
 To see total taxable amount of sale you need to follow the steps 
 1 go to display menu then click on account books
 2 then click account register standard and then sale register 
 3 select all sale type and all parties then select date range to show report
 4 enable show bifurcation of amount and ok

In BUSY Account Software do not have report to check party wise RCM paid & how much . only option available To generate All RCM Entries for a particular month. Kindly follow the following Steps:
 Step 1: To check RCM report Go to Transactions Menu click on GST Misc. Utilities option.
 Step 2: Check/Post Consolidated RCM Payable and select the option Monthly Basis or Daily Basis.
 Step 3: If selected RCM payable Monthly Basis select Month and click on OK.
 Step 4: on screen report you can do summary - with ALT + 5, export and filter

To pass the accounting entry for RCM expenses in GST, you can follow these steps:
 Step 1: Go to Administration tab.
 Step 2: Click on Master and create expense account, specifying the nature as RCM expense.
 Step 3: Click on transaction tab.
 Step 4: Click on journal voucher, specify voucher date, select GST nature as RCM Expense and save.
 Step 5: Click on GST Misc. Utility and select generation of report as monthly or as on date.
 Step 6: Press F4 key to post consolidate voucher.
 Step 7: Click on ok for automatic posting for journal voucher.

To generate the GST R2 report in BUSY and check your RCM liability, you can follow these steps: 
 In GST R2 Report there is to section for RCM liability If Party is Registered that data will reflect in B2B Invoice -3 4A and if party is Un-Registered that will be reflect in B2BUR Invoice - 4B. 
 Step 1: Go to Display Menu and Click on GST Reports. 
 Step 2: Select GST returns and click on GSTR - 2. 
 Step 3: Select starting , end date and select required field and click on OK

"To ensure that RCM (Reverse Charge Mechanism) is calculated and booked correctly every month in BUSY, you need to follow these steps:
 Step 1: Go to transaction menu and click on add journal voucher.
 Step 2: Post expense entry with the correct nature as RCM expense.
 Step 3: Click on GST Misc. utility and post consolidated RCM payable selecting basis as on date/Month.
 Step 4: Post the consolidation entry for the entire month through F4 key
 Step 5. Verify that the RCM payable amount is correctly reflected in the GST return summary for the respective month.