RCM Regarding clarification
This query is : Resolved
23 September 2022
In July month GSTR 3B i paid by mistake RCM tax in IGST column instead of CGST & SGST.
In Aug month GSTR 3B. I reverse the input tax under B. ITC Reversed other columns and paid the tax in output IGST. Also I paid the RCM in the correct head under CGST & SGST.
Entry done in tally
1) Reversal of ITC: 18000/- Dr
IGST Output RCM: 18000/- Cr
2) IGST Output: 18000/- Dr
Bank Account 18000/- Cr
My IGST output balance becomes debit. How can i adjust the same
In Aug month GSTR 3B. I reverse the input tax under B. ITC Reversed other columns and paid the tax in output IGST. Also I paid the RCM in the correct head under CGST & SGST.
Entry done in tally
1) Reversal of ITC: 18000/- Dr
IGST Output RCM: 18000/- Cr
2) IGST Output: 18000/- Dr
Bank Account 18000/- Cr
My IGST output balance becomes debit. How can i adjust the same
10 July 2024
To adjust the IGST output balance that has become debit due to the transactions you described, you can follow these steps in Tally or any accounting software:
1. **Adjusting IGST Output Balance:**
Since your IGST output balance has become debit, it means you have more IGST output liability than IGST input credit. To adjust this:
- Identify the amount of IGST output that needs adjustment. In your case, it appears to be Rs. 18,000.
- You will need to create a journal entry to correct the IGST balance.
2. **Journal Entry to Adjust IGST Balance:**
- Go to **Accounting Vouchers** > **F7 Journal** in Tally.
- Enter the following journal entry:
```
IGST Output Account Dr. 18,000
IGST Input Account Cr. 18,000
```
Here:
- **IGST Output Account**: Enter the account where you recorded the IGST output incorrectly in your previous entries (e.g., IGST Output - July payment in error).
- **IGST Input Account**: Enter the account where IGST input credit is available or where you want to adjust the IGST output balance.
- Ensure the amounts are correct and match the exact amounts you need to adjust.
3. **Save and Post the Journal Entry:**
- After entering the details, verify the entry once more to ensure accuracy.
- Save the journal entry. Tally will adjust the balances in the respective accounts automatically.
4. **Verify the Adjusted Balance:**
- Check the IGST Output and IGST Input balances after posting the journal entry to ensure that the IGST output balance is now correct and not showing as debit.
By following these steps, you can adjust the IGST output balance that became debit due to the earlier incorrect entries. It's important to maintain accurate records and reconcile balances regularly to ensure compliance and correct reporting in your GST returns. If you continue to face issues or if the adjustment involves complexities, consulting with a GST practitioner or accountant would be advisable.
1. **Adjusting IGST Output Balance:**
Since your IGST output balance has become debit, it means you have more IGST output liability than IGST input credit. To adjust this:
- Identify the amount of IGST output that needs adjustment. In your case, it appears to be Rs. 18,000.
- You will need to create a journal entry to correct the IGST balance.
2. **Journal Entry to Adjust IGST Balance:**
- Go to **Accounting Vouchers** > **F7 Journal** in Tally.
- Enter the following journal entry:
```
IGST Output Account Dr. 18,000
IGST Input Account Cr. 18,000
```
Here:
- **IGST Output Account**: Enter the account where you recorded the IGST output incorrectly in your previous entries (e.g., IGST Output - July payment in error).
- **IGST Input Account**: Enter the account where IGST input credit is available or where you want to adjust the IGST output balance.
- Ensure the amounts are correct and match the exact amounts you need to adjust.
3. **Save and Post the Journal Entry:**
- After entering the details, verify the entry once more to ensure accuracy.
- Save the journal entry. Tally will adjust the balances in the respective accounts automatically.
4. **Verify the Adjusted Balance:**
- Check the IGST Output and IGST Input balances after posting the journal entry to ensure that the IGST output balance is now correct and not showing as debit.
By following these steps, you can adjust the IGST output balance that became debit due to the earlier incorrect entries. It's important to maintain accurate records and reconcile balances regularly to ensure compliance and correct reporting in your GST returns. If you continue to face issues or if the adjustment involves complexities, consulting with a GST practitioner or accountant would be advisable.
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