Hello Brother,
Banking or Non-banking financial companies can claim only 50% of ITC which is being credited, balance 50% will be getting lapsed. And one of your question was what to do with this 50% (ie, Rs.9,000/-).
You should be carefull even when you make the entries, Since, the 50% of your ITC on input goods or services are inadmissible it should form part of your cost, to be clear, if you are purchasing a A4 bundle for Rs.10,000/- and say it has a GST of Rs.1,800/-. Usually Non-banking companies make necessary entries for Stationery expense as Rs.10,000/- and balance Rs.1,800/- as GST ITC. But here you should Charge the inadmissible ITC to the cost of the product, say, Your stationery expense would be Rs.10,900/- and the GST ITC would be Rs.900/- only.
This is one way, or you can Charge full GST to ITC ledger and then after set off the inadmissible ITC can be charged to Expense ledger through a journal, in this format you could clearly trace the transactions and you can make sure that you had claimed only 50% and balance has been added back to Expense ledger. But this method will be bit complicated and time consuming.
The first step could be more easier as of my opinion.
I hope that this would help you to understand it better, if any doubts then revert back.
Dear Abdul Raheem
As per second procdure above you can pass following entries
Laps Input Tax credit. A/c Dr
To Input Tax credit. A/c Cr
( Ineligible Input Tax credit adjusted)
Then transfer to Profit and Loss A/c as Expense
Profit and Loss A/c Dr
To Laps Input Tax credit A/c Cr
( Laps ITC transfer to p&L as Expense. )
CAclubindia
