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Jigar (B.Com)     18 June 2021

Journal Entries under GST

Purchase capital goods by paying Principal amount + CGST+SGST whose ITC is blocked under section 17 (5 ) what will be its general entry and under which voucher and in which group in Tally ERP 9???

 3 Replies

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     18 June 2021

There are 2 options:

Opt1 (preferred)

1) Make a purchase entry showing the break up of asset and tax (ensure to configure the asset under ineligible credit category)

2) Transfer the tax component to the asset account back (through Journal under statutory adjustment option)

Opt2: (not preferred)

1) Make a journal entry to record the total value of the capital asset (including tax)

Opt2 is not preferred because such entries would not form part of GST return summary in Tally


1 Like
CA Altamush Zafar

CA Altamush Zafar (GST Consultant)     18 June 2021

You will have to capitalize the tax amount with the asset. The tax amount will form part of value of asset. Depreciation will be claimed don the whole amount.

1 Like

Jigar (B.Com)     19 June 2021

Thank You

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