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. |
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