GST Reports for Transactions entered with URD or on RCM on Expense

Queries regarding GST Application in ERP system

  1. We have to pay GST on Reverse Charge Basis for transactions entered into with Unregistered Dealers how to show such transactions in ERP. For Eg. If we create purchase invoice without tax then we will not be able to trace the RCM tax payable on such invoice and if it gets added under total category then liability payable to creditor will increase to that extent.

  2. We have to pay tax on expenses exceeding Rs.5,000 per day but in system only for item codes HSN and SAC bifurcation is made mandatory. Then how we can make expense entries in system & it is not preferable to prepare purchase invoice for each and every expense. I think we should have one more report for expense.
    Create Purchase Invoice for all kinds of expenses. You can create an Item Code and assign it HSN/SAC code, if not available. You can also set Purchase Invoice as “Is Paid” so that no need of creating separate payment entry against it. - Reply from Member -
    But if we create separate items for expense then even those items will be included in stock ledger

  3. Now input credit can be claimed for all expenses entered with registered dealers provided our GST TIN number is quoted on it (Eg. Electricity Expenses, Corporate Mobile, Telephone expenses incurred for company ) How such transactions are to reflected under system
    May be you can maintain separate GST Account for the input credit and use it in your purchase transactions. This shall work just like it used to in VAT regime. - Reply from Member
    Such transactions should get either added in reports so that we can add it in GST Returns or else while filing GST returns separate reports for different transactions are required to be generated i.e for sales and purchase - item wise registers and for expense the GST General ledgers i.e CGST, SGST & IGST.

  4. In GST Advance received & paid , both the transactions are to be reflected with tax on it , how to capture this in ERP
    Create Sales Invoice for the Advance Payment Received as well and share that invoice with the party.- Reply from Member
    But when goods are not received then how to create the sales order & sales invoice and it won’t be possible to bifurcate the sales invoice on basis of Advance.Even in case of such advances there should be bifurcation in report so that like JV and other series we can create Advance receipt series.

5.Additional Import expenses charged with GST were earlier reflected under landed cost but now even for those expenses we can claim input credit. But if we add the Tax under total category then the import supplier cost increases to that extent. For Eg. The amount payable to party if is of USD 100 & IGST if added under total head then additional cost gets added to creditor liability while total amount payable to party increases to USD 128 (100 plus IGST @ 28% 28).And if IGST is charged on net total plus other additional cost of duty & freight then if we don’t add all heads under total category then IGST is not getting calculated on previous row total amount.


We are facing similar difficulties with the implementation of GST. A proper solution needs to be implemented otherwise it will become a big task to keep track of all the expenses, the SAC code and suppliers GST number.