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Manage Reversal and Reclaim of ITC for UT Merger Transition

In the books of company in Daman & Diu, you have to record an adjustment transaction to reverse the remaining input tax credit. This reversal amount is reported in the table 4(B)(2)Others in GSTR-3B.

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F7 (Journal).
  2. Press Alt+J (Stat Adjustment) for statutory adjustment.
    1. Select GST as the Type of duty/tax.
    2. Select Reversal of Input Tax Credit as the Nature of adjustment.
    3. Select Others as Additional Details.
    4. Press Enter.
  3. Select the Debit and Credit ledgers and enter the values.
    • Debit Reversal of ITC ledger created under Current Assets or Expenses and enter the debit value.
    • Credit the Integrated Tax, Central Tax and UT Tax ledgers and enter the credit values against respective ledgers. The total of credit should be equal to debit.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
  4. Accept the GST Details screen without entering any values.
  5. Accept the screen. As always, you can press Ctrl+A to save.
    The reversal ITC value will appear in GSTR-3B as shown.

Post transition, you can reclaim the reversed ITC in the books of Dadra & Nagar Haveli and Daman & Diu. The reclaimed value appears in the table 4(A)(5) of GSTR-3B.

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F7 (Journal).
  2. Press Alt+J (Stat Adjustment) for statutory adjustment.
    1. Select GST as the Type of duty/tax.
    2. Select Increase of Input Tax Credit as the Nature of adjustment.
    3. Select Transfer of ITC as Additional Details.
    4. Press Enter.
  3. Select the Debit and Credit ledgers and enter the values.
    • Debit the Integrated Tax, Central Tax and UT Tax ledgers and enter the debit values against respective ledgers.
    • Credit Reclaim of ITC ledger created under Current Assets or Income and enter the credit value. The credit value should be equal to total of debit.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
  4. Accept the GST Details screen without entering any values.
  5. Specify the details of type of goods for which this ITC is applicable.
    • Set the option Provide GST details to Yes.
    • Select Goods or Services or Capital Goods in the Type of Input field.
  6. Press Enter.
  7. Accept the screen. As always, you can press Ctrl+A to save.
    The reclaimed ITC value will appear in GSTR-3B as shown.
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