Frequently Asked Questions

To distinguish between local and interstate reverse charges, you need to look at the location of the supplier and the place of supply. If they are in the same state, it is a local reverse charge and you have to pay CGST and SGST. 
If they are in different states, it is an interstate reverse charge and you have to pay IGST.

According to Section 9(4) of the CGST Act 
 When an unregistered supplier provides taxable goods or services to a person who is registered under GST, the liability for paying the GST is shifted to the recipient (buyer) rather than the supplier.n this scenario, the registered buyer is liable to pay the GST directly to the government not to the vendor

If you are not able to see the tax amount even though you have entered RCM, there could be a few possible reasons for this issue: 
 1. It is important to ensure that you have correctly entered the RCM transactions in the software. 
 2. Modify expense master and check tax rate and percentages are accurately specified in tax category.

In the reverse charge mechanism (RCM), the liability to pay tax shifts from the supplier of goods to the recipient of goods. The reason why SGST (State Goods and Services Tax) is showing up as a liability instead of IGST (Integrated Goods and Services Tax) in RCM could be because the transaction falls under the intra-state category, where SGST is applicable.

To remove a GST RCM consolidated voucher from your GSTR output report in BUSY you have 
 to Adjust GST output RCM with regular GST input for that you can go to gst summary for the particular
 period press F4 and select RCM to regular tax adjustment and pass the journal entry under gst nature of 
 GST tax adjustment

For view pending RCM liability for freight charges please follow the below steps 
 step 1: Go to the GST summaries in display menu 
 step 2: open GST summary report 
 step 3: mentioned start , end date & other relevant options then open report 
 step 4: there you can see RCM input adjusted under tax calculation section

To ensure correct GST when processing RCM in BUSY you shoud check the tax rate provided in RCM expense 
 is correct and the party ledger state to effect the gst nature CGST or IGST and for purchase voucher You need 
 to check the purchase type Region for GST nature effect and Item tax category for proper tax calculation.

"For posting RCM entry, please follow below mentioned steps:
 Step 1: Go to transaction menu.
 Step 2: Click on GST Misc. Utility.
 Step 3: Check/Post Consolidated RCM Payable.
 Step 4: Select the voucher posting monthly basis for posting consolidated voucher.
 Step 5: Press F4 key for auto posting of consolidated voucher.
 Step 6: Click on save tab for vouchr entry.

To record regular daily transactions in BUSY, you can use the voucher entry feature. Go to the Voucher Entry menu and select the appropriate voucher type for the transaction, such as sales, purchases, receipts, or payments. Fill in the necessary details like the date, party name, amount, and other relevant information. Save the voucher to record the transaction in BUSY.

To pass a reverse charge journal entry in BUSY, you can go to the Journal Voucher screen and select the appropriate ledger accounts for the transaction. Make sure to select the GST nature as "RCM Expenses" and enter the relevant details such as the amount and tax rate. Save the entry to complete the reverse charge journal entry in BUSY.