https://help.tallysolutions.com/docs/te9rel66/Tax_India/gst/manage-tax-liability-dd-transition.htm

Manage Reversal and Reclaim of ITC for UT Merger Transition

In the books of company in Daman & Diu, you have to record an adjustment transaction to reverse the remaining input tax credit. This reversal amount is reported in the table 4(B)(2)Others in GSTR-3B.

1. G ateway of Tally > Accounting Vouchers > Press F7 (Journal).

2. Select the type of statutory adjustment.

o Press Alt+J (Stat Adjustment).

o Select GST as the Type of duty/tax .

o Select Reversal of Input Tax Credit as the Nature of adjustment and Others as Additional Details .

o Press Enter .

3. Select the Debit and Credit ledgers and enter the values.

o Debit Reversal of ITC ledger created under Current Assets or Expenses and enter the debit value.

o Credit the Integrated Tax , Central Tax and UT Tax ledgers and enter the credit values against respective ledgers. The total of credit should be equal to debit.

o Accept the GST Details screen without entering any values.

4. Press Enter to save the transaction.

T he reversal ITC value will appear in GSTR-3B as shown.

Post transition, you can reclaim the reversed ITC in the books of Dadra & Nagar Haveli and Daman & Diu. The reclaimed value appears in the table 4(A)(5) of GSTR-3B.

1. Gateway of Tally > Accounting Vouchers > F7 (Journal).

2. Select the type of statutory adjustment.

o Press Alt+J (Stat Adjustment).

o Select GST as the Type of duty/tax.

o Select Increase of Input Tax Credit as the Nature of adjustment and Transfer of ITC as Additional Details .

o Press Enter .

3. Select the Debit and Credit ledgers and enter the values.

o Debit the Integrated Tax, Central Tax and UT Tax ledgers and enter the debit values against respective ledgers.

o Credit Reclaim of ITC ledger created under Current Assets or Income and enter the credit value. The credit value should be equal to total of debit.

o Accept the GST Details screen without entering any values.

4. Specify the details of type of goods for which this ITC is applicable.

o Set the option Provide GST details? to Yes .

o Select Goods or Services or Capital Goods in the Type of Input field.

o Press Enter .

5. Press Enter to save the transaction.

T he reclaimed ITC value will appear in GSTR-3B as shown.