https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/Madhya_Pradesh/MP_Decrease_ITC.htm

Decrease of Input Tax (Madhya Pradesh)

Tax adjustment required due to decrease in input tax can be recorded by creating a journal voucher with the Nature of adjustment as Decrease of 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 voucher screen.

6.    Enter Narration, if required.

The journal voucher appears as shown below:

7.    Press Enter to save.