Can I treat GST as expense?

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25 Points Posted on 10 January 2020

I am a sole prop. I do not have any input credit. Can I claim the money paid by me towards GST as expense and deduct that from my actual income while filing income tax

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On 10 January 2020 at 18:04 Report
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As a sole proprietor without input tax credits, you can indeed treat GST payments as a business expense. Since this GST is paid out of your pocket and cannot be recovered or offset, it directly reduces your taxable income. This means you can deduct the GST amount from your actual income when filing your income tax return.

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Chartered Accountant
973 Points Posted on 10 January 2020
Yes, you can claim as expense.
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On 10 January 2020 at 23:13
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Practicing in GST and MSME
1985 Points Posted on 11 January 2020
If you have paid gst on inputs, and not availing ITC of the same, you can charge it as part of your expense.
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On 11 January 2020 at 00:02
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17269 Points Posted on 11 January 2020
Money goes out from your pocket in the form of GST payment and it's not recoverable or adjustable.

So what is it ? it's expense only and it will reduce actual income.
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On 11 January 2020 at 01:11

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