CREDIT LEDGER WITH BOOK LEDGER DIFFERENCE ENTRY AND ADJUSTMENT ENTRY

This query is : Resolved

RJ BBT (Querist)
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28 March 2024 SUPPOSE CREDIT LEDGER IGST - 2500 ,BOOK IGST LEDGER 4500 DIFFERENCE 2000 ENTRY WILL PASS ?

SUPPOSE CREDIT LEDGER CGST -45000 , BOOKS CGST LEDGER 90000 DIFFERENCE ENTRY WILL PASS ?
SAME AS SGST

PLEASE TELL !

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)
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30 March 2024 Information is not sufficient. First, the reason for the difference has to be ascertained, then a necessary decision can be taken accordingly

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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13 August 2025 EXAMPLES GIVEN:
✅ IGST:
Credit Ledger (GST Portal): ₹2,500
Book IGST Input Ledger: ₹4,500
✅ Difference: ₹2,000 (excess in books)
✅ CGST:
Credit Ledger: ₹45,000
Books: ₹90,000
✅ Difference: ₹45,000 (excess in books)
✅ SGST:
Similar difference (assume same as CGST)
📌 What Causes the Difference?
The difference typically occurs due to:
ITC wrongly booked in books but not reflected in GSTR-2B (vendor didn't upload invoice)
Ineligible ITC booked (blocked credits, etc.)
ITC claimed in books but not claimed in GSTR-3B
Timing differences in invoice recording vs return filing
✅ Accounting & Adjustment Entries
You can adjust the difference with a reversal entry or provision entry, depending on the situation:
🔸 (A) If the difference is due to ineligible/unavailable ITC
(e.g. vendor not filed GSTR-1 or invoice is not valid):
📘 Entry in Books (Reversal of Excess ITC):
Dr. Input IGST A/c ₹2,000
Cr. GST Expense / Reversal A/c ₹2,000
Same for CGST/SGST:
Dr. Input CGST A/c ₹45,000
Cr. GST Expense / Reversal A/c ₹45,000

Dr. Input SGST A/c ₹45,000
Cr. GST Expense / Reversal A/c ₹45,000
✅ This removes the excess credit from books and matches with portal.
🔸 (B) If it’s a timing difference and you expect to get credit in future:
📘 Entry (Create a separate receivable):
Dr. GST Receivable A/c (IGST) ₹2,000
Cr. Input IGST A/c ₹2,000
This keeps your books correct and tracks pending credit.
Do the same for CGST/SGST.
📌 Best Practice: Reconciliation
Download GSTR-2B and compare with your purchase register
Reconcile invoice-wise differences
Reverse ITC in books if not appearing in 2B for more than 2-3 months
Follow up with vendors to ensure timely filing of GSTR-1

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