ITC calculations

Itc need not be calculated as such. it will be mentioned in the purchase invoice.

value of goods will be booked as expense while the gst portion will go to current asset

Whatever purchases you made on which GST has been paid is your Input Tax credit.( except exempt, ineligible, blocked credit etc ) so total of puchase is your ITC . ( Input , Input services and Capital Goods puchase)

Purchase of goods or services entry will be

Purchase A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
Input IGST A/c Dr
To Trade creditor A/c Cr
(purchase made during tax period)

For purchase of Capital Goods entry will be

Asset A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
Input IGST A/c Dr
To Trade creditor A/c Cr
( purchase of Capital Goods)

Show Input CGST A/c , Input SGST A/c , Input IGST A/c under Current Asset -Asset side -Balance sheet.

On 31st March you have to transfer Input tax credit balance to" Balance with Revenue Authority A/c" and again on 1st April reverse the same entry for utilisation of ITC in the next year.

Input tax credit is also a asset.

Very valuable information by @ prasad nilugal and @ sabyachi

I was worried how can Output gst - input gst = input tax credit when it is tax payable? Easy to understand