https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/gujarat/GJ_Reverse_of_tax.htm

Recording Reversal of Tax (Gujarat)

In Tally.ERP 9, you can record a journal voucher to account for the reversal of tax.

To record a journal voucher for reversal of 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 Reversal of Input Tax in the Nature of adjustment field.

o     Select the option Manufactured Goods in the Additional Details field.

o     Press Ctrl+A to return to the voucher.

3.    Debit expense ledger grouped under Indirect Expenses, and enter the value.

4.    Credit the tax ledger created under the group Duties and Taxes.

5.    Enter the Rate, Addl. Rate, Assessable Value, Commodity Name and Commodity Code in the VAT Details screen, and press Enter.

The journal voucher appears as shown below:

6.    Press Enter to save.