Recording a Transaction for Decrease of Input Tax

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.
Chandigarh	Decrease of Input Tax	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.
Chhattisgarh	Decrease of Input Tax	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.
Himachal Pradesh	Decrease of Input Tax	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.
Odisha	Decrease of Input Tax	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.
Punjab	Decrease of Input Tax	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.
Uttarakhand	Decrease of Input Tax	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.
West Bengal	Decrease of Input Tax	Excess Claimed Earlier	Debit: Purchases/expenses ledger. Credit: VAT ledger.