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Can we settle in payment if sale and purchase from and to same party.

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(Querist)
09 June 2023 Hi,

We are buying goods from a firm and selling goods to same firm often.

So, do we need to do each and every payment from one firm to another bill by bill.

Or we can settle in this payment against all sale and purchase.

By above line i mean to say,
Let us say on 15th of every month we check which firm is having credit balance on another and transfer that amount.

Will it have impact on ITC/GST or income tax. ??
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 June 2023 You can settle in this payment against all sale and purchase. Only net due can be paid.
It will have no impact on ITC/GST or income tax

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