Decrease of Input Tax (VAT)

You can record a journal voucher for decrease in 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.