INCOME TAX 22-23

GST collections from customers

if a business collects GST from their customers but does not deposit it with the government, then that amount will be considered as taxable income. This is because GST is a tax that is collected on behalf of the government, and it is the responsibility of the business to deposit it with the government.

GST paid is the amount of GST that a business has paid to the government on their purchases or expenses. This amount can be claimed as an input tax credit against the GST collected on sales. In income tax, this input tax credit is allowed as a deduction from the taxable income of the business, reducing their tax liability.

GST payable is the amount of GST that a business has collected from their customers but has not yet paid to the government. This amount is not allowed as an expenditure in income tax as it is a liability that the business owes to the government. However, the business can claim a deduction for any GST paid on their purchases

GST payable is in the debit side of profit and loss acount so is it the GST outstanding of this year or previous year

 In the problem if  allowed as Deduction and not treated as Admissible Expenses why?