Reg : tran credit

If you have taken it under profit and loss in earlier(added with purchase) regime(VAT/CE) then it's credit in profit and loss(reduction of purchase amount) and transitional ITC debit(grouped in current Assets).

Transitional ITC....Dr. (Current Asset)
To Purchase or Transitional credit received (Indirect income)

In earlier regime, if you have taken in balance sheet as current Assets, then no issues, just pass journal

Transitional credit Dr.
To ITC c/f under VAT/CE
both ledgers grouped under current Assets.

is it compulsary to follow old regime because the itc which i got through is 2.5L and auditor is saying have to additional 50000(20%slaB) + late fees for not paying advance tax

 

Yes, if you have kept input tax in profit and loss before GST means, you have to credit profit and loss. no other go. and obviously you have to bear the additional income tax. but see the benefit of credit received in GST.

yes sir this is reason why i have opted to pay tax as no one ask me agian