Tran-1 credit

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2018 Sir,

Mr X has filled Trans-1 on the basis of Invoice on which seperate credit is shown ?

my question is what entry is passed in books for such credit

please reply on uregent

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 March 2018 https://help.tallysolutions.com/docs/te9rel61/Tax_India/gst/recording_a_jv_for_transitional_credit_under_gst.htm

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2018 I am taking credit on the basis of Excise Invoice on which seperate credit is shown but such excise is not pass on to other as it is added in purchase price.

If I passed entry CGST A/c Dr
To Excise duty
in this case excise ledger still show in books as it is based on Invoice only how this excise ledger will be square off.

kindly reply on urgent

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

02 August 2025 Got it — you have taken **transitional credit** (under TRAN-1) based on excise invoices where excise duty was included in the purchase price and not separately passed on to customers.

You passed this entry:

```
CGST A/c Dr
To Excise Duty Payable
```

But the **Excise Duty ledger** still shows a balance because the excise duty was part of the invoice but not separately tracked in purchases.

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### How to clear this Excise Duty ledger balance?

Since excise duty was **not separately paid or passed on**, and now you have taken credit under GST:

1. **Write off the excise duty ledger** by transferring it to an appropriate account, usually **Purchase Account** or **Cost of Goods Sold**. This reflects that excise duty was part of your product cost.

**Example journal entry:**

```
Excise Duty A/c Dr
To Purchase A/c (or Cost of Goods Sold)
```

This clears the excise duty ledger in your books.

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### Summary:

* Transitional credit under GST is recognized separately (CGST/SGST input).
* Excise ledger balance (from earlier purchases where excise was included) should be written off since you cannot keep it as liability.
* This ensures your books are clean and reflect the correct cost.

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