https://help.tallysolutions.com/docs/te9rel63/Tax_India/VAT/Telangana/TG_Reversal_of_Input_Tax.htm

Recording Reversal of Input Tax (Telangana)

For reversal of claimed or availed input tax credit, you can record a journal entry using Reversal of Input Tax as Nature of Adjustment .

To record journal entry to account for reversal of input tax

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

N ote: 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 Reversal on Common Inputs in Additional Details .

o Press Enter to save.

3. Debit an expense ledger created under the group Indirect Expenses .

4. Enter the required details in ITC claimable details screen.

5. Credit the VAT ledger created under the group Duties & Taxes with Type of duty/tax selected as VAT.

6. Enter the Rate and Assessable Value in VAT Details screen.

The completed screen appears as shown below:

7. Press Enter to save.