Accounting treatment on gst transitional credit

ITC / Input 420 views 1 replies

Dear Friends,

Please advise on the following:-

A Trader registered under the VAT Regime. He Imports goods also and pay Custom Duty, CVD and Cess. He charges all Custom Duty [Including CVD] to P& L Account Since He can't set off CVD againts VAT Output Liability.

In Jul-2017, He had some closing stock on which Custom Duty, CVD etc. already paid. He filed TRAN-1 under GST in which he claimed Credit of CVD on closing stock and set off GST Liability against this Credit. 

Now my query is  - What Journal is to be passed in Books for claiming credit under TRAN-1 ? 

Replies (1)
Transitional credit Dr. (Grouped under current Assets)
To Profit and loss (Income) or Purchase a/c


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