Recording a Transaction for Refund of Input Tax

You can record a journal voucher for input tax refund.

To account for input tax refund

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 Type of duty/tax as VAT.

o Select Refund of Input Tax, as the Nature of adjustment.

Note: Based on the selection made for Nature of Adjustments, the Additional Details option either appears or disappears.

o Press Ctrl+A to return to the voucher.

3. Debit the ledger grouped under Current Assets enter the amount.

4. Credit the input VAT ledger. The journal voucher appears as shown below:

5. Press Enter to save.

The states with Refund of Input Tax available as the Nature of Adjustment are given below:

State Name	Nature of Adjustment	Additional Details	Voucher Entry
Andhra Pradesh	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Assam	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Bihar	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Chandigarh	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Chhattisgarh	Refund of Input Tax	Not Applicable	Debit: CST ledger. Credit: Ledger grouped under Current Assets. and Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Chhattisgarh	Refund of Input Tax	Refund Claim	Debit: CST ledger. Credit: VAT ledger.
Dadra and Nagar Haveli	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Delhi	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Goa	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Gujarat	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger. Credit: Additional tax ledger.
Haryana	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Jammu and Kashmir	Refund of Input Tax	Not Applicable	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Jammu and Kashmir	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Jharkhand	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Karnataka	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Madhya Pradesh	Refund of Input Tax	Received from others	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
		Refund Order	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
		Self	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
		Specified Period	Debit: Party ledger grouped under Current Assets. Credit: VAT ledger.
		Transferred to others	Debit: VAT ledger. Credit: Ledger grouped under Current Assets.
Maharashtra	Refund of Input Tax	Refund Order	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Odisha	Refund of Input Tax	Not Applicable	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
		Rule 65	Debit: VAT ledger. Credit: Ledger grouped under Current Assets.
		Rule 66	Debit: VAT ledger. Credit: Ledger grouped under Current Assets.
Puducherry	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Punjab	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger. Credit: Surcharge ledger.
Telangana	Refund of Input Tax	---	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
Uttar Pradesh	Refund of Input Tax	Not Applicable	Debit: Expenses ledger. Credit: VAT ledger.
Uttar Pradesh	Refund of Input Tax	Refund Order	Debit: Ledger grouped under Current Assets. Credit: VAT ledger.
West Bengal	Refund of Input Tax	Refund Claim	Debit: Ledger grouped under Indirect Expenses/Current Assets. Credit: VAT ledger.