Overview of GTA/Transporters in Marg ERP

Process to Apply RCM to the GTA/Transporters in Marg ERP

OVERVIEW OF GTA/TRANSPORTERS IN MARG ERP

• The Goods Transport Agency is a reliable and efficient transportation service provider. The Transport Agency provides the road transport service for the companies to transfer goods from one place to another. As part of their service, Transporter/GTA issues a Consignment Note to document the transportation process.
• Under the GST Provision, the government calculates the tax at a rate of 5% from the Company instead of from the Transportation Agency through the Reverse Charge Mechanism (RCM) Method. In this case, the Company receives the Input Tax Credit (ITC) instead of the transporters.
• Marg ERP has provided a very beneficial provision in the software that when the Transporter generates the Sale Bill to provide the Transporter's services, the Transportation Tax is not calculated.
• This provision helps streamline operations for transporters & ensures a smoother taxation process for all parties involved.

PROCESS TO APPLY RCM TO THE GTA/TRANSPORTERS IN MARG ERP

• Go to Masters > Marg Setups > Control Room.

• A ‘Control Room’ window will appear.
• Click on ‘Search in All’ option.

• A ‘Controls’ window will appear.
• In ‘Search’ field, search ‘RCM’.

• Click on ‘Accept’ tab.

• A ‘RCM’ window will appear with different options.
• In ‘Reverse Charge on Sales also’ option, select ‘Yes’ from the dropdown.

• Then press ‘ESC’ key. 

• Click on ‘Yes’ to save the changes.

• Now, let’s generate the Sale Type. For this go to Masters > Ledger Master > Sale > New Sale.

A ‘Sales Type’ window will appear.

a. Sales Type: The user will select the Sale Type i.e. ‘Local’ or ‘Central’ as per the requirement.

Suppose, select ‘Local’.

b. SGST: In SGST, the user will enter the tax percentage i.e. 2.5%.

c. CGST: In CGST, the user will enter the tax percentage i.e. 2.5%.

d. Shortcut Name: The Shortcut Name will be automatically picked up by the software based on Sales Type & Tax Rate.

• The user can change it as per the requirement.

Note: The user will first type ‘RCM’ and then mention the name accordingly.

e. Sale Under: Here, a window of ‘Under Sales Group’ will appear. As the user is creating the Sales Type for Local, then select ‘Local Sales’ and press 'Enter' key.

Sale Ledger Name: This will be automatically picked by the software.

SGST Under: The user will select 'Tax - SGST' for SGST posting.

SGST Ledger: The SGST Ledger will be automatically picked by the software.

CGST Under: The user will select 'Tax - CGST' for CGST posting.

CGST Ledger: This will be automatically picked by the software.

T. Form: Tthe user can select the type of form if required. Suppose in our case skip it and press 'ESC' key.

• Then click on ‘Accept’ tab.

• Go to Transactions > Sale > Bill.

• A 'Sale Entry' window will appear.

• Press the ‘F3’ key on a particular party for whom the Sale Bill needs to be generated.

• Then click on the ‘Ledger Detail’ option.

• Click the ‘Modify’ tab.

• In the ‘GST Heading’ field, select ‘Ask Local’ from the dropdown.
• This means while billing, the software will ask for the 'Local’ Sales Type.

• Press the ‘PageDown’ key and save the details.

• Now, while creating the Sale Bill, when the user will go to the ‘Type’ field and press the ‘Spacebar’ key.

• Then a ‘Sales Type’ window will appear where the software will ask Sales Type.
• Select the Sales Type that has been created, i.e., RCM LS-GST 5%.

• Then select the Item and mention the desired Qty. and Rate.

• The user can see that the software does not calculate the Tax.

• Now press 'Ctrl+W' key and click on 'Save Bill'.

• Go to GST > GSTR 1.

• A ‘Marg GST Summary’ window will appear.
• In the ‘Period’ field, mention the period for which the user needs to view the GSTR 1 Summary.
• Click on ‘Show’.

• Press ‘Enter’ key on the ‘B2B’ record.

• The user will view the created bill here and in the ‘Reverse Charge’ column, it is showing a tick mark which means that the RCM has been applied to it.

• Now the user will click on ‘GSTR 1 Returns’ to generate the GSTR 1 Return.

• A ‘GSTR 1’ window will appear. Select the format where the user needs to generate the GSTR 1.
• Suppose, select ‘GSTN Excel Template’.

• Then click on ‘Start’.

• The user can view that the GSTR1 Return will start getting generated.

• Once the GSTR 1 Return is generated, an Excel file will open.

• The user will view that in the ‘Reverse Charge’ column, it is showing as ‘Y’ for the bill that has been created, i.e., the RCM will not be applied on the Transport at the time of Billing, but at the time of GSTR 1 Return, RCM will be applicable.