N.V. Siva Ram Prasad (Accounts & Audit Assistant) (261 Points)
20 June 2023
Pranjal Gupta
(141 Points)
Replied 20 June 2023
If you have a provisional credit balance in your GST (Goods and Services Tax) account and you want to regain it for tax payment, here are the steps you can follow:
Review the Provisional Credit Balance: Check your GST account statement or ledger to ascertain the amount of provisional credit balance available.
Verify Eligible Input Tax Credit: Ensure that the provisional credit balance comprises eligible input tax credit (ITC) that can be utilized for tax payment. This includes ITC on purchases made for business purposes, such as raw materials or services.
Adjust Against Tax Liabilities: Determine your current tax liabilities for the applicable tax period. Compare the provisional credit balance with the tax liabilities to see if you have sufficient credit to cover the payment.
File GST Return: File your GST return for the respective tax period, declaring the provisional credit balance as an adjustment against your tax liabilities. Ensure accurate reporting of all relevant details and claim the provisional credit balance as part of your ITC.
Pay Remaining Tax: If the provisional credit balance does not fully cover your tax liabilities, you will need to pay the remaining amount through the designated payment methods (online payment or bank challan).
Confirmation and Adjustment: Once the return is filed, the GST portal will confirm the utilization of the provisional credit balance against your tax liabilities. The amount utilized will be debited from the provisional credit balance and adjusted accordingly.
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ajnas
(accountant )
(23 Points)
Replied 20 March 2024
Could you please share how can over come this problems 🤝
CAclubindia
