Finance Compliance Consultant
595 Points
Joined March 2026
Since you have shifted from composition to regular scheme and filed ITC-01, the eligible ITC on closing stock can be recorded by debiting Input GST ledgers and crediting Stock/Inventory account.
Entry:
Input CGST A/c Dr
Input SGST A/c Dr
Input IGST A/c Dr
To Stock / Inventory A/c
Later, when GST liability is paid by utilising ITC, pass entry:
Output GST A/c Dr
To Input GST A/c
Ensure the entry is passed only for eligible ITC claimed in ITC-01 and reflected in the electronic credit ledger.