We had already discussed about the provisions of Rule 36(4) of CGST in our earlier post titled- CGST Rule 36(4): ITC available only 20% more of Invoices uploaded by Supplier. This is an explanation post with respect to the Circular No. 123/42/2019– GST dated 11th November 2019. Let us discuss the practical process/journal entries of availing ITC restricted to 20% more of invoices uploaded by the suppliers in our books of accounts.
Month |
Dr/Cr | Particulars | Amount |
Amount |
October |
Debit | Purchase A/c |
1,00,000 |
|
Debit |
GST Input A/c |
18,000 |
||
Credit | Creditors A/c |
1,18,000 |
||
Narration | (Being purchase made) | |||
Note: | Total Input for the month of October is Rs.18000/- out of which invoices uploaded by the suppliers with ITC only of Rs.10000 |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
October |
Debit | GST Deferred Input A/c |
6,000 |
|
Credit | GST Input A/c |
6,000 |
||
Narration | (Being Input deferred) | |||
Note: | Balance ITC of Rs.6000 i.e. (18000 – (10000 + (10000*20%)) is deferred |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
October |
Debit | GST Output A/c |
25,000 |
|
Credit | GST Input A/c |
12,000 |
||
Credit | GST Payable A/c |
13,000 |
||
Narration | (Being GST payable for October) | |||
Note: | Eligible ITC of Rs.12000 i.e. (18000 – 6000) is adjusted against ouput and balance is payable |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
November |
Debit | Purchase A/c |
80,000 |
|
Debit | GST Input A/c |
14,400 |
||
Credit | Creditors A/c |
94,400 |
||
Narration | (Being purchase made) | |||
Note: | Total Input for the month of October is Rs.14400/- out of which invoices uploaded by supplier with ITC only of Rs.11000 |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
November |
Debit | GST Deferred Input A/c |
1,200 |
|
Credit | GST Input A/c |
1,200 |
||
Narration | (Being Input deferred) | |||
Note: | Balance ITC of Rs.1200 i.e. (14400 – (11000 + (11000*20%)) is deferred |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
November |
Debit | GST Output A/c |
30,000 |
|
Credit | GST Input A/c |
13,200 |
||
Credit | GST Deferred Input A/c |
4,800 |
||
Credit | GST Payable A/c |
12,000 |
||
Narration | (Being GST payable) | |||
Note: | Eligible ITC of Rs.13200 i.e. (14400 – 1200) is adjusted against ouput along with deferred ITC of Rs.4800 (4000 + (4000*20%)) where invoices for the ITC of Rs.4000/- are uploaded by supplier in November out of Rs.18000 of the ITC of the month of October |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
December |
Debit | Purchase A/c |
1,20,000 |
|
Debit | GST Input A/c |
21,600 |
||
Credit | Creditors A/c |
1,41,600 |
||
Narration | (Being purchase made) | |||
Note: | Total Input for the month of October is Rs.21600/- (all the invoices uploaded by the supplier in the same month) |
–
Month |
Dr/Cr | Particulars | Amount |
Amount |
December |
Debit | GST Output A/c |
80,000 |
|
Credit | GST Input A/c |
21,600 |
||
Credit | GST Deferred Input A/c |
2,400 |
||
Credit | GST Payable A/c |
56,000 |
||
Narration | (Being GST payable) | |||
Note: | ITC of December of Rs.21600/- (fully uploaded) along with Deferred ITC of Rs.2400/- i.e. (Balance ITC of October Rs.1200 (18000 – 12000 – 4800) & Balance ITC of November Rs.1200 (14400 – 13200), considering all the balance invoices pertain to the month of October & November are uploaded, is adjusted with output and balance is payable |
GST Deferred Input A/c under which group in tally?
Please anyone tell me
Thank you for the appreciation @dipti taparia
excellent explanation. thank you