Recording Journal Vouchers for Adjustments against Tax Credit under GST

The tax credits of central tax, integrated tax and state tax can be used to set-off the liability of central tax, state tax/UT tax and integrated tax in the order specified under GST.

The order in which tax credit can be offset is given below:

Input Tax    Credit	Set-off against the Liability
Central tax	Central tax and integrated tax (in that order).
Integrated tax	Integrated tax, central tax, and state tax/UT tax (in that order).
State tax	State tax/UT tax and integrated tax (in that order).

To record a journal voucher for cross utilization of tax credits

1.    Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

Note: You can also create a journal voucher from Gateway of Tally > Display > Statutory Reports > GST > GSTR-1 or GSTR-2.

2.    Click J: Stat Adjustment or Alt +J

3.    In the Stat Adjustment Details screen, select the options as shown below:

4.    Press Enter to save and return to the journal voucher. 

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Offset Tax against Liabliities