Efficient Input Tax Credit Adjustment in Tally Prime


Transferring Input tax credit to GST

Transfer of closing balance of input tax credit to GST

01-07-2017 We transferred the input VAT credit of Rs. 20,000 to state tax ledger.

01-07-2017 We transferred the CENVAT credit of Rs. 5,000 to central tax ledger.


Input Tax Credit Set Off

15-07-23 Adjust the following input credit against available tax liability:

Input Tax Credit Liability Amount
Central Tax – Rs. 1,41,300 Central Tax – Rs. 1,62,090
State Tax – Rs. 1,41,300 State Tax – Rs. 1,62,090
Integrated Tax – Rs. 73,800 Integrated Tax – Rs. 39,600

Ledger Creation

  • Access Ledger Creation:
    • Go to Gateway of Tally.
    • Select "Accounts Masters" from the main menu.
    • Choose "Ledgers" to access the ledger creation screen.
  • Create Input VAT Ledger:
    • Select "Create" under the single ledger option.
    • Enter the name as "Input VAT".
    • Under "Under", choose "Duties & Taxes" from the list of groups.
    • Press Enter to save.
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  • Create Cenvat Ledger:
    • Select "Create" under the single ledger option.
    • Enter the name as "Cenvat".
    • Under "Under", choose "Duties & Taxes" from the list of groups.
    • Press Enter to save.
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01-07-2017 We transferred the input VAT credit of Rs. 20,000 to the state tax ledger.

  • Access Journal Voucher:
    • Go to the Gateway of Tally.
    • Select "Accounting Vouchers" from the main menu.
  • Select Journal Voucher:
    • Choose "F7: Journal" from the voucher types.
  • Enter Date:
    • Input the voucher date as "01-07-2017".
  • Enter Narration:
    • Add a narration explaining the transaction, for example, "Transfer input VAT credit to state tax ledger."
  • Stat Adjustment:
    • Press Alt + J to open the Stat Adjustment screen.
  • Enter GST Details:
    • In the Stat Adjustment screen, set the "Type of duty/tax" as GST.
    • Choose "Nature of Adjustment" as Opening Balance.
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  • Debit SGST Ledger:
    • Select the SGST ledger account and enter the amount of Rs. 20,000 in the Debit column.
  • Credit Input VAT Ledger:
    • Select the Input VAT ledger account and enter the amount of Rs. 20,000 in the Credit column.
  • Save the Voucher:
    • Press Ctrl+A to save the voucher.
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01-07-2017 We transferred the CENVAT credit of Rs. 5,000 to the central tax ledger.

Journal Voucher Entry in Tally

  • Access Journal Voucher:
    • Go to the Gateway of Tally.
    • Select "Accounting Vouchers" from the main menu.
  • Select Journal Voucher:
    • Choose "F7: Journal" from the voucher types.
  • Enter Date:
    • Input the voucher date as "01-07-2017".
  • Enter Narration:
    • Add a narration explaining the transaction, for example, "Transfer CENVAT credit to central tax ledger."
  • Stat Adjustment:
    • Press Alt + J to open the Stat Adjustment screen.
    • Enter GST Details:
      • In the Stat Adjustment screen, set the "Type of duty/tax" as GST.
      • Choose "Nature of Adjustment" as Opening Balance.
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    • Debit CGST Ledger:
      • Select the CGST ledger account and enter the amount of Rs. 5,000 in the Debit column.
    • Credit CENVAT Ledger:
      • Select the CENVAT ledger account and enter the amount of Rs. 5,000 in the Credit column.
  • Save the Voucher:
    • Verify the details entered.
    • Press Ctrl + A to save the voucher.
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View Reports

  • Gateway of Taly -> Display More Reports -> GST Reports
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Journal Voucher Entry in Tally

  • Access Journal Voucher:
    • Go to the Gateway of Tally.
    • Select "Accounting Vouchers" from the main menu.
  • Select Journal Voucher:
    • Choose "F7: Journal" from the voucher types.
  • Enter Date:
    • Input the voucher date.
  • Enter Narration:
    • Add a narration explaining the transaction, for example, "Decrease in tax liability with CGST adjustment."
  • Stat Adjustment:
    • Press Alt + J to open the Stat Adjustment screen.
    • Enter GST Details:
      • Set the "Type of duty/tax" as GST.
      • Choose "Nature of Adjustment" as Decrease In Tax Liability.
      • Additionally, choose "Others" as the "Additional Nature of Adjustment."
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    • Debit CGST Ledger:
      • Select the CGST ledger account and enter the amount of Rs. 141,300 in the Debit column.
    • Credit CGST Ledger:
      • Select the CGST ledger account again and enter the same amount of Rs. 141,300 in the Credit column.
  • Save the Voucher:
    • Verify the details entered.
    • Press Ctrl + A to save the voucher.
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Journal Voucher Entry in Tally

  • Access Journal Voucher:
    • Go to the Gateway of Tally.
    • Select "Accounting Vouchers" from the main menu.
  • Select Journal Voucher:
    • Choose "F7: Journal" from the voucher types.
  • Enter Date:
    • Input the voucher date.
  • Enter Narration:
    • Add a narration explaining the transaction, for example, "Decrease in tax liability with CGST adjustment."
  • Stat Adjustment:
    • Press Alt + J to open the Stat Adjustment screen.
    • Enter GST Details:
      • Set the "Type of duty/tax" as GST.
      • Choose "Nature of Adjustment" as Decrease In Tax Liability.
      • Additionally, choose "Others" as the "Additional Nature of Adjustment."
    • Debit CGST Ledger:
      • Select the CGST ledger account and enter the amount of Rs. 39,600 in the Debit column.
    • Credit CGST Ledger:
      • Select the CGST ledger account again and enter the same amount of Rs. 39,600 in the Credit column.
  • Save the Voucher:
    • Verify the details entered.
    • Press Ctrl + A to save the voucher.
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View Reports

  • Gateway of Taly -> Display More Reports -> GST Reports
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Tally Prime

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