Applicability of GST

This discussion clarifies the applicability of GST on loans written off and treated as income in company accounts. It explains that GST is generally levied on the supply of goods or services, and a mere book adjustment of a written-off loan does not constitute a supply. Furthermore, it highlights that Schedule III of the GST Act pertains to the transfer of business assets where Input Tax Credit (ITC) has been claimed, and therefore, GST is not applicable in such scenarios.