As we know there are majorly two types of Import i.e Import of Goods and Import of Service. There is detail provision laid down regarding both the case in GST Act. This article will cover basic concepts and transaction to record in Tally.ERP9



This article will cover the scenario of Import of Service (Import of Goods is already covered on my you tube channel click here to see the video )

Import of Service is importing any service from outside the territorial of India from any other country.

Let us understand the concept of Import of Service with below example
ABC India Infocom is an IT Company located in Mumbai, India. To provide cyber security to domestic customers they have a contract of service license to use with “Hyuwan Pte Ltd Singapore”

Hyuwan Pte Ltd Singapore charge to ABC India Infocom for license service for 15000 US Dollar annualy.

Now above example clearly state that ABC India Infocom import license service of Singapore base company. Now the case arise when Hyuwan Pte Ltd will raise invoice they will not charge Indian GST where as ABC India Infocom need to pay GST on Reverse charg basis on such transaction.
Now in above case RCM will be applicable as supplier of service is not registered under Indian GST and liable to collect and pay GST on that.

Now we will see how the above transaction can be recorded in Tally?
Before moving to transaction process we need to note following masters need to be created in Tally

  • Master Configuration in Tally
  • Booking of Service Exp in the books of ABC Infocom
  • Rasining RCM Liability and claiming Input Tax credit

Lets solve the above transaction
Master Configuration :- There will be following ledger in Tally
Party Master (Hyuwan Pte Ltd Singapore)
License Service (Expense Ledger)
IGST Ledger



License Service Purchase (Exp Ledger)


IGST Ledger (There will be 2 IGST Ledger one will be normal IGST to claim ITC and second should be RCM IGST to compulsory pay Liability on it)




Transaction 1 :- Recording Service Purchase (15000 US Dollar @69 Rs per Dollar)

Expense Invoice can be recorded in INR currency or Dollar as per method followed by organization.
(We are recording same entry in both INR and Dollar)
Entry Should be recorded in Purchase Voucher in Account Invoice Mode








Same entry in Dollar





(We have recorded only INR entry to process further)

Transaction 2- Raising Tax Liability and claiming ITC :- You can claim Input Tax credit in same month but however you compulsory have ton pay Tax liability on this.
To raise Tax liability and ITC go to Journal voucher >> Click on ALT+J >> Select Stat Adjustment Option as below







You can see IGST has been debit and RCM IGST has been credit. Debit refers Input Tax credit where as credit refers Liability amount.

Above same entry can be recorded from GSTR3B report as well.
Assume that you have not recorded above Journal till month end you can view GSTR3B report and can raise GST liability as below
Go to GSTR3B Report  >> Select month



You can see above highlighted option of Import of Service >> Drill down the report >>


You need easily see number of entries and entry of liability pending. You can book ITC and Liability from here click on ALT+J >> to book ITC and Liability.

So this was it friends. Above method to record transaction will surely will be easy to keep track and record of Import transaction.
Please share your suggestion and feedback on gstintally786@gmail.com


Check out other article
1- New ITC Setoff Rule
2- RCM Entry in Tally
3- Purchase of Fixed Assets in GST
4- How to crack Tally Data Password

Regards,
Parvez Ansari
GST AND TALLY WALA
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