Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - rcm data feeding and report
What is the process to pass RCM entry through journal voucher in BUSY ?
To pass the RCM entry from BUSY through journal entry you need to follow the steps
Step1 go to transaction menu and select journal voucher and click on add
Step2 fill voucher series date and number and select GST nature as RCM expense
Step3 create a expense ledger which tax rate must be given in it and RCM nature should be Compulsory
Step4 Debit the expense ledger and credit the Cash or bank or party
Step5 save the voucher
How do I handle GST refunds and claim input tax credit in BUSY?.
for handle GST refunds and cliam input tax credit in BUSY lease follow the below steps
step 1: first we need to entered account voucher for GST refund and claim input tax credit
step 2: go to the receipt voucher under transaction menu and add new voucher
step 3: select date & GST nature not applicable
step 4: in credit side select input GST accounts, in debit side select bank account and relevant amount
step 5: save voucher .
How do I record an invoice in BUSY where the vendor has charged me both CGST/SGST and RCM?.
Its not possible in BUSY that vendor charged CGST/SGST & RCM both in invoice because of
Section 9(4) of the CGST Act states that if a vendor is not registered under GST supplies goods to a person registered under GST, then RCM would apply. This means that the GST will have to be paid directly by the receiver instead of the supplier. The registered buyer who has to pay GST under reverse charge has to do self-invoicing for the purchase made.
How do I post a voucher that is showing as pending?.
To post a voucher that is showing as pending please follow the below steps
step 1: Go to the GST reports under display menu
step 2: open GST summaries under GST report and click on GST summary
step 3: mentioned month for pending RCM voucher and other relevant option then open report
step 4: press F4 for auto RCM tax adjustment posting under regular GST for posting pending RCM vouchers
step 5: mentioned Series and date then save voucher
How do I correct or adjust entries for my RCM payments if I have made a mistake earlier in BUSY?
To correct or adjust entries for RCM payments in BUSY, please follow below steps:
Step 1: Go to GST report and then GST summary.
Step 2: Open report in desired date range
Step 3: Press F4 key to post 'RCM to Regular Tax Adjustment' option. This allows you to adjust the RCM payment against your regular GST liability.
Step 4: Select the RCM payment entry that needs to be adjusted and pass the adjustment entry to correct the mistake.
I am facing issues with claiming RCM in my GST-B. What could be the problem?
If you are facing issues with claiming RCM in my GST-3B check the given points
1.Check the rcm entry for expense passed in journal voucher and gst nature is selected as rcm expense in journal voucher
2.Check consolidated entry for rcm payable is passed or not by checking it in rcm expense ledger
3.Chec tax category and rcm applicablity is selected in expense account
4.After these points check in gstr 3b showing rcm entry under relevant section or rcm section
Is it possible to import RCM data from an external source into the software?
In BUSY do not have separate option to import RCM data from external source into BUSY but there is one option available you can try by Import Vouchers from excel.
Step 1: Go to Administration Menu and click on Data Export Import option
Step 2: click on Import Vouchers from Excel.
Step 3: select voucher type Journal and configure format for import.
Step 4: how to configure import voucher from excel you can check above link. https://www.youtube.com/watch?v=28h0c9rLTsY
How do I consolidate multiple reverse charge mechanism (RCM) transactions when using separate party ledgers? How do I adjust RCM transactions for previous months in BUSY?
To do consolidate multiple RCM transactions when you are using separate party ledgers and want to adjust
RCM transactions for previous months in BUSY you need to follow the steps
1 go to transaction menu and click gst misc utilities
2 click on check post consolidated RCM
3 select monthly basis
4 here you can select previous month or current month in which you want to consolidate
5 press F4 to consolidate RCM tax liability
How to ensure ledger is hit properly when entering RCM in BUSY?.
To ensure ledger is hit properly when entering RCM in BUSY you should check the following details
1 for RCM purchase entry you need to check that purchase type is under RCM Unreg then It would reflect
in RCM list
2 For RCM expense entry you should check the RCM nature of expense ledger is under compulsory and
tax rate given properly to hit the ledger in RCM list and for proper tax calculation in RCM
What is the accounting entry for RCM tax payments in BUSY?.
To do the accounting entry for RCM tax payments in BUSY you need to follow the steps
1 create a journal entry where gst nature must be GST payment to government
2 Select RCM output account Debit and bank account credit
3 Select GST payment type as RCM payment and its period ending date for which month its paying
4 In gst payment details RCM amount will pick automatically the particular RCM amount for gst then save