GST Input tax credit

my_bookkeeper · ‎December 28, 2019

I am new to Quickbooks, but i have good amount of experience accounting in Zoho/Tally/SAP

We are in the process of setting up of books of our clients of Quickbooks.

As part of opening balances, we have Input Tax Credits as on 1st Apr 2019.

Normally ITC Credit balances are classified as "Current Assets", but here in Quickbooks they are classified under "Current Liabilities" !

I have few questions:

1. Why it has been classified as Current Liabilities?

2. How does Quickbooks record purchases where there is Input GST paid amount?

3. How do we record the opening balances of ITC credits in CGST/SGST/IGST?

svaishnavi · ‎December 29, 2019

Hello,

Welcome to QuickBooks Community!

Here are a few articles to help you with your questions.

Setting up QuickBooks for GST

GST reports in QuickBooks

Customise invoice for GST

I hope these articles help!

my_bookkeeper · ‎December 29, 2019

Hi,

Thank you for sharing the link.

I have gone through them already.

None of these videos answer my question. Why ITC is set as "Current Liabilities" this is totally incorrect way of classifying the account.

svaishnavi · ‎December 29, 2019

Thank you for your feedback. We have forwarded your feedback to the respective team. You can also share your feedback by clicking the 'Gear' icon next to your company name. Under 'Your Company', select 'Feedback'. Your valuable feedback goes to our Product Development team to help improve your experience in QuickBooks.

Happy New Year in advance!