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. Manage Reversal and Reclaim of ITC for UT Merger Transition

1. G ateway of Tally > Accounting Vouchers > Press F7 (Journal).

2. Select the type of statutory adjustment.

o Press Alt+J (Stat Adjustment).

o Select GST as the Type of duty/tax .

o Select Reversal of Input Tax Credit as the Nature of adjustment and Others as Additional Details .

o Press Enter .

3. Select the Debit and Credit ledgers and enter the values.

o Debit Reversal of ITC ledger created under Current Assets or Expenses and enter the debit value.

o 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. Manage Reversal and Reclaim of ITC for UT Merger Transition

o Accept the GST Details screen without entering any values.

4. Press Enter to save the transaction.

T he 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. Manage Reversal and Reclaim of ITC for UT Merger Transition

1. Gateway of Tally > Accounting Vouchers > F7 (Journal).

2. Select the type of statutory adjustment.

o Press Alt+J (Stat Adjustment).

o Select GST as the Type of duty/tax.

o Select Increase of Input Tax Credit as the Nature of adjustment and Transfer of ITC as Additional Details .

o Press Enter .

3. Select the Debit and Credit ledgers and enter the values.

o Debit the Integrated Tax, Central Tax and UT Tax ledgers and enter the debit values against respective ledgers. Manage Reversal and Reclaim of ITC for UT Merger Transition

o 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.

o Accept the GST Details screen without entering any values.

4. Specify the details of type of goods for which this ITC is applicable.

o Set the option Provide GST details? to Yes . Manage Reversal and Reclaim of ITC for UT Merger Transition

o Select Goods or Services or Capital Goods in the Type of Input field.