Duties and Taxes for GST Input and Output

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sowmya (Querist)
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29 March 2022 Dear Sir,

Recently i joined to the new group of companies. Here 12 companies accounts are maintained.
But in all the companies Input GST kept under Direct Expenses and Output GST under Direct Income.
Actually Input and output both will come under Duties and Taxes.
which is the right way to maintain. here they telling as per CA requirements all are maintaining keep as it is.

Thanks in advance

Sowmya K S

CA Altamush Zafar

CA Altamush Zafar (Expert)
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29 March 2022 Input can be taken in expenses if ITC not available. However output tax always becomes part of liability. It cannot be taken as Direct Income as it will also be violation of AS-9 and also corresponding IND-AS which deals with revenue recognition

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sowmya

sowmya (Querist)
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29 March 2022 ITC is available. In that case if we consider expenses?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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29 March 2022 If ITC is eligible and have not been claimed then they have been booked under expenses. You also need to check the GST returns as to how they are being filed.
As a principle claim of ITC is optional. It is a right which can be exercised or forgone

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sowmya

sowmya (Querist)
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29 March 2022 Its claimed in every month

CA Altamush Zafar

CA Altamush Zafar (Expert)
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29 March 2022 Then check there maybe a transfer entry which transferring ITC from expense back to asset

sowmya

sowmya (Querist)
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29 March 2022 Yes in previous year a/c end of the year Income- expenses adjusted towards the payable a/c

CA Altamush Zafar

CA Altamush Zafar (Expert)
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