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Balance of Input credit.

ITC / Input 188 views 1 replies
We had input credit of Rs.100000/- against purchase of both capital and revenue expenditures , out of which only 25000/- could be availed rest Rs.75000/- had been reversed in GSTR3B, because 75% of Turn over was tax free. In that case what entries are to be taken for rest of the input credit, whether it should be debited to concerned (capital goods/ expenses heads) accounts heads or to directly debited to P&L accounts? We prepare monthly profit & loss a/c then what will be done for rest input credit?
Replies (1)
either ways is fine...
but if u debit it separately to p&l, it will directly be available for ur future reference, that Howmuch is increase in cost due to non availability of credit, in turn will be helful in ur business planning.


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