Reversal of expenses claimed in last year

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This query is : Resolved

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A client mistakenly received invoices with CGST & SGST instead of IGST in FY21-22. The supplier cancelled these, and the client claimed expenses without GST, following expert advice. Now in FY22-23, these expenses have been reversed to adjust the supplier's balance, with new IGST invoices issued. The client seeks confirmation on the correctness of this expense reversal and claim process.

Aishwarya

Aishwarya (Querist)
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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?

RAJA P M

RAJA P M (Expert)
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24 June 2023 Your query not clear

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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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.

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