https://help.tallysolutions.com/docs/te9rel64/Tax_India/gst/recording_a_jv_for_transitional_credit_under_gst.htm

Record Transitional Credit for GST

When the stock purchased before the date of implementation of GST is cleared, the tax credit can be claimed under GST. This facility is available up to 12 months from the date of implementation of GST. To claim the ITC, you need to sell the closing stock of the previous tax regime. You can record this transaction using a journal voucher.

To avail ITC on closing stock from the previous tax regime, the closing stock has to be calculated for 12 months prior to 30 June 2017 (1st July 2016 to 30 June 2017).

To get this information in Tally.ERP 9, do either of the following:

Get the closing balance of the Stock Summary report as on 30 June 2017 of a company whose books begin within twelve months immediately preceding 1 July 2016. If the books begin before 1 July 2016, in the Stock Summary report, you need to manually identify the stock purchases made before 1 July 2016 which are lying in the closing stock as on 30 June 2017, and exclude those purchases from the closing stock value.

You can move all the closing stock items (purchased within 12 months from 01 July 2017) from the existing godown, for example, Stock Held with VAT , to the new godown, for example, Stock Held with GST . These goods will be eligible for ITC. Use the new godowns for purchases from 1 July 2017. To account for inter godown transfers, you can use stock journals.

Go to Movement Analysis report ( Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Group Analysis > Primary ) and select the period as 1 July 2016 to 30 June 2017. Click F5: Item wise .

o Export the data to Excel format. Add a column in the Excel sheet to calculate the difference between inward and outward stock. This difference is the closing stock on which you can claim ITC once you sell the closing stock.

You need to sell the closing stock of the previous tax regime, to claim the ITC. The ITC amount should be calculated manually with the help of closing stock value ( Difference between Inward and Outward Quantity x Inward Rate ) based on the VAT, or Service Tax, or Excise amount paid in the previous tax regime. For this, you need to record a journal voucher at the end of every month considering all the sales made during the month or, when you sell the closing stock transaction-wise.

Record a journal voucher for transitional credit

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

2. Click J : Stat Adjustment .

o In the Stat Adjustment Details screen, select the options as shown below:

o Press Enter to save and return to the journal voucher.

3. To avail tax credit, debit the central tax and state tax ledgers, and credit the tax credit ledger grouped under Current Assets .

To avail tax credit on excise and service tax : Debit the central tax ledger and credit the service tax and CENVAT ledgers.

To avail tax credit on VAT, additional tax, cess, TDS and entry tax : debit the state tax/UT tax ledger and credit the VAT, additional tax, cess, TDS and entry tax ledgers.