GST Input can be Transferred to P/L as expenses

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This query is : Resolved

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This discussion clarifies how unclaimed GST Input Tax Credit (ITC) can be transferred to the Profit & Loss account. It's essential to reverse the unclaimed ITC first and then account for it under suitable heads in GSTR 3B. The GST expense should then be posted to the relevant account, ultimately impacting the Trading, P&L, or Balance Sheet based on the expense's nature.

Daya

Daya (Querist)
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27 August 2023 Whether GST Input can be transferred to profit and loss account,when we want not to claim further as input and transferred to P/L account,

RAJA P M

RAJA P M (Expert)
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27 August 2023 Yes, unclaimed ITC can be transfer to PandL head. But, before show the ITC in GSTR 3b suitable heads.

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
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03 September 2023 Unclaimed ITC should be reversed. Unclaimed ITC as GST Exp(account) should not be t/f to P&L. GST would be t/f to respective account and thereafter to Trading/P&L/Balance Sheet depending upon the nature of expense.

RAJA P M

RAJA P M (Expert)
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03 September 2023 Is there any difference in this reply and previous one...???
Please note if any wrong...!!!

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