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Dear Folks,
I have done the GST setup for my Client however we are facing the below issues. Could you please let me know where am i missing anything...
Please review the attached picture.
Below is the explanation:
In Case of Normal entry:
1) Vendor will charge GST on the basic amount (Inv Amt - Rs.20000 + 3600 = Rs.23600)
2) GST will get add in the total invoice amount (i.e. 20000+3600 = Rs.23600)
3) TDS deduction from Invoice amount (i.e. 23600 - 400 = Net Amt 23200)
4) Net amount payble to the vendor - Rs.23200/-
5) GST Input credit will be available post vendor payment (180 days condition)
In Case of Reverse Charge entry:
1) Vendor will not charge GST on the basic amount (Inv Amt - Rs.20000)
2) GST will be calculated on basic account but not to add in the total invoice amt (i.e. 20000+3600 = Rs.23600)
3) TDS deduction from Invoice amount (i.e. 20000 - 400 = Net Amt 19600)
4) Net amount payble to the vendor - Rs.19600/-
5) GST calculated under reverse charge will get credited to GST Payable account for payment
6) GST input credit will be available post GST payment by NSEIT
Note: In case of RCM, GST Input to be debited directly to Input account & not in interim account
Regards
Nasir
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