GST Adjustment Entry Help Required

https://docs.google.com/spreadsheets/d/1izTifwDVUCBbD_bRpZbjkP9i-WBbWZVCtMYuRS5iAQA/edit?usp=sharing

The standard journal entry sequence for GSTR-3B Table 6.1 ITC offset:

When recording output tax liability (monthly):

- Debit: Sales/Revenue (gross)

- Credit: Output CGST Payable / Output SGST Payable / Output IGST Payable

When claiming ITC offset:

- Debit: Output CGST Payable / Output SGST Payable / Output IGST Payable

- Credit: Input CGST / Input SGST / Input IGST

For any remaining cash liability after ITC offset:

- Debit: Output CGST Payable / Output SGST Payable / Output IGST Payable

- Credit: Electronic Cash Ledger (or Bank when replenishing the cash ledger)

For RCM entries (three-step cycle):

1. Record liability: Debit RCM Expense / Purchases, Credit RCM CGST Payable / RCM SGST Payable

2. Pay from cash ledger: Debit RCM CGST Payable / RCM SGST Payable, Credit Bank

3. Claim ITC (if eligible): Debit Input CGST / Input SGST, Credit RCM ITC Received

This [GST ITC reconciliation guide for SMEs](https://taxgarden.in/blog/gst-2-itc-reconciliation-sme-pain-points-2026) has a worked example with ledger balances.