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Gst refund

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userrr

Accountant

92 Points Posted on 22 June 2020

suppose we apply for refund for rs.100 and received from department rs. 80 which is final, according to them we apply excess..so what is accounting entries for the same???

Replies (3)

Quick Summary

This discussion addresses the accounting treatment when a GST refund application is only partially approved. If you applied for a £100 refund and received £80, the remaining £20 is considered excess. The suggested journal entry involves debiting your bank account for £80, writing off the £20, and crediting your Input Tax Credit (ITC) account by £100. An alternative approach suggests debiting 'GST refund receivable' and crediting ITC upon application, then debiting the bank for the received amount and the ITC ledger for the disallowed portion, finally crediting 'GST refund receivable'.

David

article Assistant

470 Points Posted on 22 June 2020

Here it is to write off the balance 20. Journel entry would be
Bank a/c Dr 80
Write off a/c 20
To ITC input a/c 100

CA Surjeet Negi

Indirect Tax- Consultant

50 Points Posted on 22 June 2020

can you pls elaborate the reason of such excess claim? whether it was denied by the deptt cz basis that recredit/reversal would happen? thank you

CA Saloni

Manager-Accounts & GST Consultant

3197 Points Posted on 23 June 2020

Alternatively,

At the time of application of refund,
GST refund receivable _Dr 100
To Itc 100

At the time of receipt of refund
Bank _Dr 80
ITC _Dr 20
To Gst refund receivable 100

Rs 20 being again available for utilization in credit ledger...The dept will recredit the amount in your electronic credit ledger, if it was applied from e credit ledger...