Input Service Distributor under GST in Tally ERP9

When multiple services have been received for operating of business under a single registration, against a single tax invoice, the tax credit of such services can be distributed among the each business as input service distributor credit.

 

You can record a journal voucher to avail the ISD credit.

 

 

Example

 

ABC Company located in Bangalore, Karnataka. They also have unit located in Hyderabad (Telangana State) and Mumbai.

 

The unit in Bangalore is the head office and registered under ISD. ABC Company will do bulk procurement of common services which are used by the other units also.

 

ABC company (HO) receives an invoice of Rs.1,00,000 with GST of Rs.18,000 (CGST Rs.9000 and SGST Rs.9000)  towards advertisement services provided to the Hyderabad unit only.

 

 

Recording a journal voucher for input service distributor (ISD) credit under GST

 

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

 

Click on J: Stat Adjustment

 

Select options in stat adjustment details screen as shown below

 

 

 

Type of duty/tax: GST

 

Nature of Adjustment: Increase of Input Tax Credit

 

Additional Details: ISD transfer

 

Press enter to save the screen

 

 

 

 

 

Journal entry

 

 

Debit the state tax, central tax, integrated tax or cess ledgers and credit the party ledger account.

 

Press enter to save the screen

 

 

 

Check GSTR-3B Report

 

Path: Gateway of Tally -> Display -> Statutory Report -> GST -> GSTR-3B

 

 

 

 

 

Related Topics

 

Adjustments Against Tax Credit under GST in Tally ERP9

 

Debit Note and Credit Note in Tally ERP9

 

GST Classifications in Tally ERP9