CGST/SGST Input tax Classification in Tally Prime

For the CGST/SGST input tax credit on purchases, it's recommended to classify them under Current Assets, rather than Current Liabilities (Duties and Taxes).

 Here's why: -

Current Liabilities represent amounts owed by your business, whereas Current Assets represent resources owned or controlled by your business. - 

Input tax credit is a benefit that reduces your tax liability, so it's an asset to your business. - 

Classifying input tax credit under Current Assets will help you accurately reflect your business's financial position and ensure compliance with accounting standards. So, to answer your question: - 

Take the CGST/SGST input tax credit on purchases under Current Assets. - Create a separate ledger or account specifically for input tax credit, such as "CGST Input Tax Credit" and "SGST Input Tax Credit" under Current Assets.