Include Reverse Charge Entries in Sale
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YouTube: How to Include Reverse Charge Entries in Sales for GST Returns?
In this tutorial, we will learn how the "Include Reverse Charge Entries in Sale" feature works during GST Return generation in Logic ERP. This feature allows Reverse Charge Mechanism (RCM) transactions to be included in Outward Supplies while generating GST Returns, ensuring accurate GST reporting where required.
Include Reverse Charge entries in GST Sales data.
Ensure eligible RCM transactions are reflected in GST Returns.
Improve GST reporting accuracy.
Provide better visibility of Reverse Charge transactions.
Support compliance with GST reporting requirements.
Navigate to Reports/Queries and then Sale Registers.
Select GST Reports/Returns.
Open GST Returns Module.
Click on Configuration and open Configuration Settings 2.
Locate the option labeled as:
"Include Reverse Charge Entries in Sale"
When enabled, Reverse Charge entries are also considered while preparing Outward Supplies data for GST Returns.
Before generating the GST Return, let's review a Reverse Charge Mechanism (RCM) transaction.
Example
Open the RCM Journal Voucher entry.
Review the accounting transaction.
Observation
The purchase transaction has been recorded under Reverse Charge Mechanism (RCM) along with the applicable:
CGST Entry
SGST Entry
Action
Return to the GST Returns Module.
Select the required GST Return Type.
Enter the relevant Date Range.
Click Generate.
Result
When the feature is disabled:
The Reverse Charge transaction is reflected under Inward Supplies.
The same transaction is not reflected under Outward Supplies.
This occurs because Reverse Charge entries are excluded from Sales reporting when the feature is disabled.
Action
Return to GST Returns Configuration.
Enable the option: "Include Reverse Charge Entries in Sale"
Save the configuration.
Generate GST Return Again
Select the same GST Return Type.
Enter the required Date Range.
Click Generate.
Result
After enabling the feature:
The Reverse Charge transaction continues to appear under the relevant GST sections.
The same RCM entry is now also reflected under Outward Supplies.
The system successfully includes eligible Reverse Charge entries while preparing GST Sales data.
Improves GST reporting flexibility.
Ensures eligible Reverse Charge transactions are reflected in sales data.
Enhances visibility of RCM transactions.
Supports accurate GST reconciliation.
Helps maintain compliance with reporting requirements.
Verify RCM accounting entries before generating GST Returns.
Review GST reports after enabling the feature to ensure transactions are reflected correctly.
Use this feature only when your GST reporting process requires Reverse Charge entries to be considered in Outward Supplies.
Periodically reconcile GST reports with accounting records for accuracy.
When the "Include Reverse Charge Entries in Sale" feature is enabled, Logic ERP includes eligible Reverse Charge Mechanism (RCM) transactions in the Outward Supplies section during GST Return generation. This ensures that Reverse Charge entries are appropriately reflected in GST reports and provides greater flexibility in GST reporting and reconciliation.
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