https://help.tallysolutions.com/docs/te9rel64/Tax_India/VAT/journal_vouchers/BR_Decr_ITC.htm

Decrease of Input Tax (VAT)

You can record a journal voucher for decrease in input tax.

To create journal voucher for decrease of input tax

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

Note: You can create a journal voucher from Gateway of Tally > Display > Statutory Reports > VAT > select the VAT or CST form.

2. Click J : Stat Adjustment . In the Stat Adjustment Details screen,

o Select the option VAT in the Type of duty/tax field.

o Select the option Decrease of Input Tax in the Nature of adjustment field.

o Press Enter to save, and return to voucher screen.

3. Debit the CST ledger.

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to voucher screen.

4. Enter the amount in the Debit column.

5. Credit the VAT ledger.

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to the voucher screen.

6. Set the option Provide VAT Details? to Yes and enter the From and To dates, else retain the option as No .

Note: The option Provide VAT Details is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State .

7. Enter Narration , if required. The journal voucher appears as shown below:

8. Press Enter to save.

The states with Decrease of Input Tax available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Assam

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Bihar

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger or ledger grouped under Current Liabilities .

Chandigarh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Tax Paid on Unsold Stock

Debit: Ledger grouped under Current Assets .

Credit: VAT ledger.

Chhattisgarh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Against CST of capital goods

Debit: CST ledger.

Credit: VAT ledger.

Dadra and Nagar Haveli

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger/ledger grouped under Current Liabilities .

Change in Use of Goods, for Purchase Other Than for Which Credit Allowed

Debit: Purchase ledger.

Credit: VAT ledger.

Other Adjustments

Debit: Party Ledger.

Credit: Purchase Ledger.

Credit: VAT ledger.

Delhi

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Change in Use of Goods, for Purchase Other Than for Which Credit Allowed

Debit: Purchase ledger.

Credit: VAT ledger.

Other Adjustments

Debit: Party/expenses ledger.

Debit: VAT ledger.

Credit: Purchase ledger.

Goa

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Set Off Against Excess ITC Under Goa Sales Tax Act

Debit: Expenses ledger.

Credit: VAT ledger.

Set Off Against Excess ITC Under Goa Tax on Entry of Goods Act

Debit: Expenses ledger.

Credit: VAT ledger.

Set Off Against Excess ITC Under Goa VAT Act

Debit: Expenses ledger.

Credit: VAT ledger.

Gujarat

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Credit: Additional tax ledger.

Haryana

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Himachal Pradesh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Tax Paid on Unsold Stock

Debit: Ledger grouped under Current Assets .

Credit: VAT ledger.

Jammu and Kashmir

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Jharkhand

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Madhya Pradesh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Maharashtra

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Other Purchase Adjustment

Debit: Expenses ledger.

Credit: CST ledger.

Other Purchase Adjustment (Capital Assets)

Debit: Expenses ledger.

Credit: CST ledger.

Odisha

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Credit note issued to buyer (excess VAT in sales)

Debit: Party ledger.

Credit: VAT ledger.

Puducherry

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Change in Use of Goods, for Purchase Other Than for Which Credit Allowed

Debit: Purchase/expense ledger.

Credit: VAT ledger.

Other Adjustments

Debit: Party/cash ledger.

Credit: Purchase ledger.

Credit: VAT ledger.

Punjab

Decrease of Input Tax

Against CST

Debit: CST ledger.

Debit: Surcharge ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Tax not charged by the seller

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Tamil Nadu

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Telangana

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Uttarakhand

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger or ledger grouped under Current Liabilities .

Refund Claim

Debit: Refund claim ledger grouped under Current Assets .

Credit: VAT ledger.

Uttar Pradesh

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

West Bengal

Decrease of Input Tax

Against CST

Debit: CST ledger.

Credit: VAT ledger.

Excess Claimed Earlier

Debit: Purchases/expenses ledger.

Credit: VAT ledger.