Purchase from Unregistered Dealer (URD) & Imports

Learning Objectives

Is class ke end tak student:

  • URD ka concept samjhega.
  • Registered aur Unregistered supplier ka difference samjhega.
  • URD purchase aur RCM ke relationship ko samjhega.
  • Reverse Charge Mechanism ka concept samjhega.
  • Forward Charge aur Reverse Charge mein difference identify karega.
  • URD purchase ka accounting treatment samjhega.
  • Applicable URD/RCM purchase TallyPrime mein record kar payega.
  • Local aur Interstate URD transactions samjhega.
  • RCM tax liability calculate kar payega.
  • CGST/SGST aur IGST under RCM identify kar payega.
  • RCM liability ko TallyPrime mein raise kar payega.
  • Eligible ITC ka basic treatment samjhega.
  • RCM tax payment record kar payega.
  • Purchase return/adjustment ka impact samjhega.
  • GST reports mein RCM transactions verify kar payega.

Day 2 ka Quick Recap & Core Concepts

Day 2 Recap

Normal Purchase: Supplier GST charge karta hai → Supplier → GST Charge → ABC Traders (e.g., Purchase ₹10,000 + GST 18% = Invoice ₹11,800).

RCM Purchase: Supplier GST charge nahi karta; instead, Recipient → GST liability discharge karta hai.

URD Kya Hai?

URD = Unregistered Dealer / Unregistered Supplier: Aisa supplier jo GST registration ke under registered nahi haTallyPrime mein party ledger ka Registration Type = Unregistered set kiya jata hai.

Registered vs Unregistered Supplier

Particular Registered Supplier Unregistered Supplier
GST Registration Yes No
GSTIN Available Generally not available
GST invoice Applicable as per transaction Normal registered GST tax invoice nahi
RCM Transaction-specific Sirf applicable cases mein
Tally Registration Type Regular/Composition etc. Unregistered
Most Important Rule:
URD Purchase ≠ Automatically RCM
Har unregistered supplier se purchase par automatically RCM nahi lagtRCM applicability transaction ki nature, applicable GST provisions, notifications aur current law par depend karti hai.

Reverse Charge Mechanism Kya Hai?

  • Forward Charge: Supplier → GST → Government
  • Reverse Charge: Recipient → GST → Government

RCM Calculation Table

Supply Taxable Value Rate GST
Local RCM ₹10,000 18% CGST ₹900 + SGST ₹900
Interstate RCM ₹10,000 18% IGST ₹1,800

Masters Setup & Configuration

Company Setup

  • Company: ABC Traders (Maharashtra) | Registration: Regular | FY: 2026–27

URD Party Ledgers

Field Party 1 (Local) Party 2 (Interstate)
Name Maharashtra URD Supplier Gujarat URD Supplier
Group (Under) Sundry Creditors Sundry Creditors
State Maharashtra Gujarat
Registration Type Unregistered Unregistered
GSTIN Blank Blank

RCM Purchase Ledger & Stock Item Configuration

  • Purchase Ledger: Purchase Under RCM - 18% (Under Purchase Accounts) → GST Applicable → Taxability: Taxable → Reverse Charge applicability: Yes → GST Rate: 18%.
  • Service/Stock Item: Legal Consultancy Service → Type: Service → GST Rate: 18% (Practice Rate) → Applicable for Reverse Charge.

Practical Walkthroughs

Practical 1 — Local URD Purchase Under RCM (05-May-2026)

Received Legal Consultancy Service from Maharashtra URD Supplier (Value: ₹20,000, GST: 18%).

  • Calculation: Taxable Value = ₹20,000 | CGST (9%) = ₹1,800 | SGST (9%) = ₹1,800 | Total RCM Liability = ₹3,600 | Supplier Bill = ₹20,000.
  • TallyPrime Steps: Press F9 → Select Maharashtra URD Supplier → Select Purchase Under RCM - 18% → Item: Legal Consultancy Service (₹20,000) → Press Ctrl + O → GST - Tax Analysis to inspect RCM tax → Save with Ctrl + A.

Practical 2 — Interstate URD RCM Purchase (08-May-2026)

Received Professional Consultancy from Gujarat URD Supplier (Value: ₹30,000, GST: 18%).

  • Calculation: Taxable Value = ₹30,000 | IGST (18%) = ₹5,400 | Total RCM Liability = ₹5,400 | Supplier Bill = ₹30,000.
  • TallyPrime Steps: Press F9 → Select Gujarat URD Supplier → Select Purchase Under RCM - 18% → Item: Professional Consultancy (₹30,000) → Verify IGST ₹5,400 → Save with Ctrl + A.

Practical 3 — URD Purchase Without RCM (01-May-2026)

Purchased office stationery from Maharashtra URD Supplier (Value: ₹8,000, RCM Not Applicable).

  • Calculation: Purchase = ₹8,000 | GST = ₹0 | Invoice/Payment = ₹8,00(Demonstrates URD ≠ Automatic RCM).

Transaction Comparison

Transaction Supplier RCM GST Charged by Supplier Recipient Liability
Normal Registered Purchase Registered No Yes Normal ITC
URD Purchase, RCM Not Applicable Unregistered No No No RCM
URD Purchase, RCM Applicable Unregistered Yes No Recipient pays RCM

Raising RCM Liability, Payment & ITC Adjustments

RCM Liability Raise Karna (Stat Adjustment)

  1. Go to Gateway of Tally → Display More Reports → GST Reports → GSTR-3B.
  2. Open Reverse Charge Inward Supplies (or URD Purchases).
  3. Press Alt + J (Stat Adjustment).
  4. Select details:
    • Type of Duty/Tax: GST
    • Nature: Increase in Tax Liability & Input Tax Credit
    • Additional Nature: Purchase from Unregistered Dealer

Accounting Logic: Debit → GST Input / ITC (₹3,600) | Credit → RCM GST Liability (₹3,600).

RCM Tax Payment (F5)

When discharging RCM tax liability via Bank (e.g., HDFC Bank):

  1. Press F5 (Payment) → Press Alt + J (Stat Adjustment Details).
  2. Select: Type of Duty/Tax: GST → Nature: Decrease in Tax Liability → Additional Nature: Purchase Under Reverse Charge from Unregistered Dealer.
  3. Debit: RCM GST Liability (₹3,600) → Credit: HDFC Bank (₹3,600).

Purchase Returns Under RCM

  • Same-Month Return: Purchase ₹20,000, Return ₹5,00Tax reversal on ₹5,000 @ 18% = ₹900 (CGST ₹450 + SGST ₹450Reduces current month RCM values.
  • Subsequent-Month Return: Handled through the reverse-charge liability reporting for that period, and tax reversal is based on the returned valuDo not delete original transactions.

Complete Practice Sets

Practice Set — Level 1

Date Type Party Value GST RCM
05-May Purchase Service Maharashtra URD Supplier ₹20,000 18% Yes
08-May Purchase Service Gujarat URD Supplier ₹30,000 18% Yes
01-May Purchase Goods Maharashtra URD Supplier ₹8,000 — No
01-May Purchase Return Maharashtra URD Supplier ₹5,000 18% Yes
02-May RCM Payment HDFC Bank ₹8,100 — Yes

Practice Set — Level 2

  • Purchase 1: ₹15,000 local RCM @18%
  • Purchase 2: ₹25,000 interstate RCM @18%
  • Purchase 3: ₹40,000 local RCM @18%
  • Purchase 4: ₹12,000 URD purchase — RCM not applicable
  • Purchase 5: ₹50,000 interstate URD purchase — verify RCM applicability

Verification Reports, Common Mistakes & FAQs

Reports to Verify:

  • GSTR-3B: Check Reverse Charge Inward Supplies and URD Purchases.
  • Tax Analysis: Inside voucher press Ctrl + O → GST - Tax Analysis.
  • Purchase Register: Check Supplier, Taxable Value, and RCM status.

Common Mistakes:

  • Assuming Every URD is RCM: URD ≠ Automatic RCM.
  • Supplier Charging GST: RCM bills should not have forward tax charged by supplier.
  • Forgetting to Raise Liability: Simply recording the purchase voucher does not auto-raise statutory liability in returns without statutory adjustment.
  • Treating Tax Payment as Normal Expense: Always pass via statutory adjustment payment.

Frequently Asked Questions:

  • Q: RCM mein GST kaun pay karta hai?
    A: Applicable RCM transactions mein recipient government ko direct tax pay karta hai.
  • Q: Local vs Interstate RCM mein kaunse taxes aate hain?
    A: Local = CGST + SGST; Interstate = IGST.
  • Q: Stat Adjustment ka shortcut kya hai?
    A: Alt + J.

Quick Revision & Completion Checklist

RCM Golden Flow:

URD Supplier → Check RCM Applicability → Purchase Invoice → Taxable Value → RCM GST → Raise RCM Liability → Tax Payment → Eligible ITC → ITC Set-off → GST Return

Completion Checklist:

  • URD supplier ledgers created (Local & Interstate)
  • RCM purchase ledger & service items configured
  • Local & Interstate RCM purchases entered
  • URD non-RCM purchase entered
  • RCM liability raised via Stat Adjustment (Alt + J)
  • RCM tax payment recorded via Payment (F5)
  • Purchase return adjustments verified
  • GSTR-3B and Tax Analysis verified