Reverse Charge under GST in India

Can we configure Reverse charge scheme in ERPnext?

For eg. purchase from a unregistered dealer to appear in purchase register under seperate head and option to track those purchases to avail the credit from govt and pass entries for adjusting it with CGST & SGST accounts


You could create separate CGST/SGST for the transactions on which you need to avail Credit from the govt.

How do i seperate Reverse Charge transactions ? The problem is ,the purchase invoices will not need to show CGST/SGST as tax but tax paid to govt and credit need to be availed from tax dept.

These journals are to be passed seperately anyway but how do we classify them

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Related Issue

According to this and this, reverse charges are supposed to be for purchases from unregistered suppliers. From what I could gather, with regards to ERPNext, when reverse_charge is N, everything is perfect. But when it is Y, things would be a little different. For instance,

  • The amount payable to the supplier would be equal to the net_total instead of to the grand_total.
  • The appropriate GST tax would be entered on the credit side of GL Entry table instead of being on the other side.

I am not an accountant though, so please correct me if I am wrong.

The Reverse Charge is not working in ERP Next

as was shown in the video

The video shown is of Tally and not ERPNext. So I am not sure what you really mean to say here.

the problem was

when a reverse charge purchase is entered the supplier ledger is being posted for the total amount that includes the reverse charge tax that is payable by us.

It should not be shown in the supplier ledger. The supplier ledger should only the purchase amount with out tax.

The related tax to be posted the relevant tax ledgers.

The tally video gives the differences of various ledgers that they are following.

I enter the purchase invoice and the tax applicable in the purchase invoice option. When I save and submit the total amount due to supplier is the purchase amount and the tax that I need pay.

But it should only show the payable amount to supplier without the tax in the suppliers ledger.

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Dear All any update on the reverse Charge entries.