GST reverse charge

GST reverse charge is an anti-fraud measure that applies to the sale and purchase of specific good sand services. These are typically high value, portable, electronics such as mobile phones. The reverse charge procedure holds the purchaser liable to account for the GST on the sale.

GST is not charged by the vendor. The invoice must show the value of GST that is due under the reverse charge rules. It must state that the reverse charge applies, and that the trading account customer is required to account for the GST.

India specifics

Under GST, the reverse charge applies to the supply of specific goods and the CGST, SGST, and IGST. The tax is not collected by the vendor, as is typical, but instead the buyer pays the taxes directly to the government on purchases. To remit the CGST, SGST, and IGST, the buyer must be registered for GST.

How Infor meets the requirement

In FSM there is flexibility to account for these taxes on an accrued basis. Select the Accrued Or Invoiced option. Select Accrued to account for the GST on reverse charge.

See Enabling the VAT/GST reverse indicator.