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How to carry forward ITC in tally after splitting the company

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Manjiri

GST Practitioner

38 Points Posted on 25 July 2021

Hello,

We have split company 2019-20 after finalising the balance sheet of that particular year.

For March 2020 we have additional input which was credited after filing returns. Return was filed in Apr-20. If I keep opening balance of this amount in respective ledger (Input CGST and Input SGST) it is showing as difference in opening balances of the same amount.

If I keep respective actual values of Input and output ledger still it is showing difference in opening balnce in Balance sheet of 20-21.

How do I resolve this difference in opening balance?

Thanks in Advance.

Manjiri Jadhav

Replies (4)

Quick Summary

This discussion addresses an issue with carrying forward Input Tax Credit (ITC) in Tally after a company split. The user is experiencing differences in opening balances for the new financial year (2020-21) due to additional ITC credited after the previous year's (2019-20) balance sheet finalisation and returns filing. The core problem lies in correctly reflecting this post-finalisation ITC as an opening balance in Tally, which currently causes discrepancies on the balance sheet.

Chartered Accountants ASPIRANT

34 Points Posted on 25 July 2021

Can u pls tell that this ITC as on 31.3.20 is as per books n taken in opening bal on. 1.4.20 and then u had set off the liability outstanding on 31.3.20 for march 20 month return in April month only?

Imthias ahamed Kormath

635 Points Posted on 26 July 2021

During 2019-20
April to Sept has alredy been sett off by u on sept month.
Oct to March has already been sett off by sett off by sept 2020.
Additional itc crdited in filing April 2020.
so, what problem?

Manjiri

GST Practitioner

38 Points Posted on 27 July 2021

Yes. After passing journal entry for Set off liability of March 20 we should have debit balance in SGST and CGST ledger which will be carried forward in month of April 20. When this balance was taken as opening balance it is showing the same amount at difference.

Manjiri

GST Practitioner

38 Points Posted on 27 July 2021

Originally posted by : Imthias ahamed Kormath
	During 2019-20April to Sept has alredy been sett off by u on sept month.Oct to March has already been sett off by sett off by sept 2020.Additional itc crdited in filing April 2020.so, what problem?

My issue is doing entry in Tally or difference in opening balance that is being shown in tally. Company files monthly returns. So has to Pay liability or take credit from month to month.