GST input query.

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Query 1:- In ABC Ltd GST input receivable in the balance sheet (Eligible Unclamied GST input accounted in the balance sheet of FY 2018-19 for claiming such input in subsequent finacial year ( ie, in FY 2019-20)before the Maximum time limit of claiming the ITC under the section 16(4) of GST)as on 31-3-2019 Rs. 300000, subsequent year such input is not claimed, this input receivable is charged to next year p&l as a expense,( in FY 2019-20) then this expense is treated as prior period item? This expense is disallowed as prior period expense or not in income tax?



Query 2:-In ABC Ltd GST input receivable in the balance sheet (Ineligible Unclamied GST input accounted in the balance sheet of FY 2018-19 for claiming such input in subsequent finacial year ( ie, in FY 2019-20)before the Maximum time limit of claiming the ITC under the section 16(4) of GST)as on 31-3-2019 Rs. 600000, subsequent year such input is not claimed, this input receivable is charged to next year p&l as expense,( in FY 2019-20) then this expense is treated as prior period item? This expense is disallowed as prior period expense or not in income tax?
My view :- in my second query ineligible itc unclaimed in next year FY 2019-20 charged to P & L is treated as prior period item and also dissallowed in income tax, because at the time of income tax audit of FY 2018-19 auditee can easily identity the ineligible itc as per section 17(5) in GST, if such input accounted in FY 2018-19 as GST Receivable for claiming such input in FY 2019-20 that is clear mistake, therefor it is a prior period item and also dissallowed as prior period item in income tax
Need expert opinion
Replies (1)
This is a bit grey area, however, it seems genuine not to book expense in FY 2018-19, and should be allowed as an expense in FY 19-20.


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