Input reversal

This discussion addresses the correct accounting treatment for reversing excess CGST input tax credit claimed in a previous financial year (2018-19) during September 2019. The user sought clarification on the journal entry required when an excess claim of Rs. 72,000, initially taken to CGST Input RCM, was reversed. A proposed entry involves debiting an 'Excess Input Reversal A/C' and crediting 'CGST Input RCM', followed by a debit to the 'Statement of P/L' and a credit to 'Excess Input Reversal A/C'.