ITC AGAIN CLAIMED

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This query is : Resolved

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A business claimed Input Tax Credit (ITC) in their GSTR 3B for FY 2019-20 but didn't record it in their books. They've now made a book entry to reflect this ITC, debiting an ITC ledger and crediting their capital account. The query asks if this is permissible and if it could be treated as income, especially since the original expense was booked inclusive of GST. The advice suggests this is not permissible and could be treated as income, cautioning against claiming ITC twice on the same supply.

VIPIN GUPTA

VIPIN GUPTA (Querist)
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03 December 2021 Dear Sir,
We has claimed itc in GSTR 3B in F/y 2019-20 but not in books. Now in current year we have passed the entry in books by Debiting ITC claimed ledger and crediting capital account and claimed ITC in books. We are covered under tax audit. My Query
1. Can we do this
2. Will it not be treated as income as the expenses was earlier debited in books including GST in it.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 December 2021 1 No.
2 Credit profit and loss account treat it as income.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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03 December 2021 Your query is not clear as to how the GST was expensed when it was claimed.
But for sure you cannot claim ITC twice on the same inward supply

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