Adjustments Against Tax Credit under GST in Tally ERP9

In order to set off the tax liability of central tax, integrated tax and state tax under GST as follows.

 

You have to set-off the above tax liability as per the below following order.

 

 

 

Example

 

Output Tax details as follows

 

Central tax (CGST) payable on outward supply of Rs.20,000

 

Integrated tax (IGST) payable on outward supply of Rs.26,000

 

State tax (SGST) payable on outward supply of Rs.20,000

 

 

Input tax details as follows

 

Central tax (CGST) paid on purchases of Rs.16,000

 

Integrated tax (IGST) paid on purchases of Rs.32,000

 

State tax (SGST) pad on purchases of Rs.16,000

 

 

Output IGST – Input IGST

 

26,000 – 32,000 = – 6,000 Available Input IGST

 

 

Output CGST – Input CGST

 

20,000 – 16,000 = 4,000 CGST payable amount

 

 

Output SGST – Input SGST

 

20,000 – 16,000 = 4,000 SGST payable amount

 

 

Step 1

 

As per the above example available input IGST amount is Rs.6,000 after set-off input IGST.

 

 

Step 2

 

As per the above example CGST payable amount is Rs.4,000 after set-off input CGST and you can adjust available input IGST against CGST payable.

 

 

CGST Payable amount is Rs.4000

 

Less: Adjust available input IGST paid on purchases Rs.4000

 

Now, the CGST Payable is “Zero”

 

 

Available input IGST is Rs. 2,000 (6,000- 4,000)

 

 

Note

 

You cannot set-off available input SGST against CGST payable amount

 

 

Step 3

 

As per the above example SGST payable amount is Rs.4,000 after set-off input SGST and you can adjust available input IGST against SGST payable.

 

SGST payable amount is Rs.4,000

 

Less: Available input IGST is Rs. 2,000

 

Net SGST Payable amount is Rs. 2,000

 

 

 

How to record a journal voucher for utilization of tax credits

 

Path: Gateway of Tally -> Accounting vouchers -> F7 Journal

 

Click on Stat Adjustment

 

 

Type of duty/tax: GST

 

Nature of adjustment: Decrease of Tax Liability

 

Additional Details: Adjustment against Credit

 

 

 

Adjustment Entries for the above example

 

Output IGST Dr                      26,000

 

To Input IGST                         26,000

 

 

Output CGST Dr                     4,000

 

To Input IGST                         4,000

 

 

Output SGST Dr                     2,000

 

To Input IGST                         2,000

  

 

 

 

Related Topics

 

Sales to Consumers under GST in Tally ERP9 

 

Recording of GST Inter-State Purchases in Tally ERP9

 

GSTR-1 Report in Tally ERP9