Gst charged to profit & loss account, whether disallowable?

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This query is : Resolved

Abdul Rahim (Querist)

01 June 2018 Sir,
I'm not collecting Gst from customers and paid GST out of my pocket, can it be treated as expense, Whether disallowance applicable for such expense?

CA Himanshu Ojha

CA Himanshu Ojha (Expert)

01 June 2018 Yes, it will be disallowed.

RAJA P M

RAJA P M (Expert)

01 June 2018 What You mean "Not Collecting GST from Customers"...? then How To you billing to Your customers...? Are You regular dealer or composition dealer...?

Abdul Rahim

Abdul Rahim (Querist)

01 June 2018 Sir,
We, regular dealer, having commission income and billing excluding GST.

CA Suresh Jain

CA Suresh Jain (Expert)

01 June 2018 As per Invoice rules under CGST, a taxable person has to issue invoice with showing applicable GST separately. If you are not showing it, it is an offence. It looks that your arrangement with your principal is to pay you fixed % including GST. You need to reverse calculate GST and show the same in invoice. e.g. invoice is for Rs. 118 and GST rate is 18% GST would be (118/(100+18)) * 18 = 18.

So far GST in P&L account is concerned, as per Accounting Standard, Revenue is to be shown including all taxes levied/leviable thereon. The GST paid by you can be deducted from such revenue on the face of profit and loss account or mentioned in debit side

Abdul Rahim

Abdul Rahim (Querist)

02 June 2018 CA Suresh Jain Thankyou sir,

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