Frequently Asked Questions

To enter consulting RCM payment voucher in BUSY follow the steps 
 Step1 Go to transaction menu and click on Payment voucher or Journal Voucher then click add
 Step2 fill the series name date and voucher number 
 Step3 slect GST nature as RCM Expense 
 Step4 Create a expense ledger and fill the tax category on it and make RCM nature Compulsory and save it 
 Step5 Debit the consulting Expense ledger and Credit the cash or bank or the party name

RCM (Reverse Charge Mechanism) is a method of calculating tax liability where the recipient of goods or services is responsible for paying the tax instead of the supplier. In CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax), RCM is calculated by debiting the CGST and SGST input accounts and crediting the CGST and SGST input available RCM accounts. The tax amount is calculated based on the applicable tax rate, which is usually a percentage of the transaction value.

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.

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

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.

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

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

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

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

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