Invoice V/S Goods receipt Note Date

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If ownership passed before 31-03-2026, record goods as 'in transit' with liability in FY 2025-26. GRN date only confirms receipt. TDS u/s 194Q applies on earlier of credit/payment-so depends on booking date.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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27 April 2026 Purchase invoice date 31/03/2026
GRN date. 01/04/26
Accounting Date 01/04/26
My question-
Is goods in transit entry essential to show current asset & current liabilities in B/S
Is tds unde sec. 194 Q required to consider in F. Y 25-26 or in F. Y. 26-27
Please guide.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 April 2026 In my view, if the purchase invoice is dated 31/03/2026 and the ownership/risk in goods has passed to the buyer before year-end, then the entry should be recognized in FY 2025-26 as Goods in Transit / Inventory and corresponding creditor liability should be shown in the Balance Sheet.

GRN date of 01/04/2026 only confirms physical receipt, but it does not always decide the accounting year. If goods were dispatched and title had passed before 31/03/2026, then showing goods in transit is appropriate.

For TDS u/s 194Q, liability arises at the earlier of:

Date of credit to seller’s account or date of payment

So, if the purchase invoice is booked/credited on 31/03/2026, TDS u/s 194Q should be considered in FY 2025-26.
If the invoice is actually accounted/credited only on 01/04/2026, then TDS will fall in FY 2026-27.

Also, GST ITC should generally be claimed only after receipt of goods, i.e., after GRN/actual receipt, subject to other ITC conditions.

Conclusion:
Accounting for goods in transit is advisable if liability/ownership existed on 31/03/2026. TDS u/s 194Q depends on the actual date of credit/payment, whichever is earlier.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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27 April 2026 धन्यवाद सर, Very Very Thanks, sir for giving valuable guidance

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