24 June 2023
One of client's supplier raised invoice in CGST & SGST by mistake instead of IGST in F.Y. 21-22.To correct this supplier cancelled those invoices in same year. But then to close the a/c of supplier client claimed the exps in F.Y. 21-22only without GST as per expert's advice. And now in F.Y.22-23, same exp are reversed against that supplier to raise the supplier's balance. And supplier has raised new invoices under IGST and client is accordingly claiming exps in F.Y. 2022-23. Is the reversal and claim of expenses on 21-22 correct?
23 August 2023
Expenses are fine to be deducted from PL in 21-22 and in 22-23 when the Invoice is reversed and fresh invoices are issued, there is not be any impact / change in expenses because it will get nullified.
CAclubindia
