Accounting for reverse charge under gst

TRIDIP KOTHARI (Director) (25 Points)

22 June 2017  

We are aware that Reverse Charge is payable by a registered taxable person for Goods or Services received from an Un-Registered person.

This Reverse charge when paid for will be made available as Input GST.

This Un-registered purchase of Goods or Services can be from a Local ( Intra State ) party or Central party ( Inter State ).

While creating Reverse Charge liability , should we credit the respective Output GST A/c - i.e When Local - SGST Output & CGST Output ; When Central - IGST Output and debit a Reverse Charge Recoverable A/c.?

This Reverse Charge Recoverable A/c can be then credited when Input is made available.

Will the Input that is made available against payment made towards Reverse Charge be credited into respective Input GST A/c by the GSTN - i.e SGST Input , CGST Input or IGST Input. ?