CLAUSE 27(a)

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This discussion clarifies the scope of GST Clause 27(a), questioning if it applies to all registered dealers or only those dealing with specific products like petroleum and tobacco for Input Tax Credit (ITC) utilisation. It also addresses the 45-day payment rule for services from MSME registered entities, determining whether an expense should be disallowed in the current financial year based on the payment date.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)

08 August 2024 Hello
can clarify the below mentioned Query
whether Clause 27(a) is applicable to all registered business dealer under GST or it is applicable to only 5 products dealer petroleum crude, diesel, petrol, aviation turbine fuel, natural
gas and tobacco for ITC utilization as it is not clearly mentioned for ITC related part under Tax audit guidance note

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 August 2024 Clause 27(a) applies to all assesses registered under GST/Central Excise.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)

28 August 2024 suppose I received service from the MSME registered person in 31/03/2024 bill itself is of 31/03/2024 payment made 15/05/2024 (exacts day- 45day) should I disallowance this expense in FY 2023-24 or it will not be disallowance as complied within 45 day I am getting confused 45 days count from the which date 31/3/24 or 01/04/2024?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 August 2024 Count it from 1st April it will not be disallowed.

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