Gst payment allowed business expenses

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This query is : Resolved

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This discussion clarifies that GST collected from customers is a liability and should be settled against GST paid on business expenses. If GST isn't collected from customers, the gross GST liability impacts your profit and loss. Ultimately, you're not paying GST from your own pocket; it's about adjusting collected amounts.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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15 June 2021 A gst registered dealer rs:50,000/- net balance tax for may-21 month amount business expenses (profit and loss account debited) allowed in it act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2021 The net balance tax has to be adjusted against GST collected on sales only.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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15 June 2021 It is a liability. If collected from customer then liability will get adjusted from such collection. If not collected from customer then the gross gst liability will be charged to p&l