GST input reversed is allowed as deduction in income tax

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Student
844 Points Posted on 26 June 2020
GST input is taken in finacial year 2017-18 Rs.50000 and same input reversed is reversed in next finacial year 2018-19 Rs.50000 With interest 3000 it is allowed as a deduction in income tax in the financial year 2018-19?
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On 26 June 2020 at 22:09 Report
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This discussion clarifies whether reversed GST input tax, paid with interest in a subsequent financial year, can be claimed as a deduction for income tax purposes. The consensus is that interest paid on the incorrect utilisation of GST credit is allowable as a deduction under Section 43B of the Income Tax Act, 1961, provided it's paid in the current financial year.

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Student CMA
90 Points Posted on 26 June 2020
Yes . Any interest, fees , duty , cess , tax paid is allowed as deduction under section 43b in Income Tax 1961
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On 26 June 2020 at 22:22
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Chartered Accountant
4524 Points Posted on 26 June 2020
Prior period expenses booked in current year is disallowed in the income tax assessment for current year.
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On 26 June 2020 at 22:33
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Student CMA
90 Points Posted on 26 June 2020
But Interest on wrong utilisation of gst credit is paid on current year 18 - 19
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On 26 June 2020 at 22:57

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