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INCOME TAX 22-23

Sujana (92 Points)

18 April 2023

1)GST collections is a trading receipt. If the amount collected is not deposited with the Government, then it is taxable. In this problem collection is given payment is not yet made, so on this collection assessee is liable to pay tax.
What does this Statement Actually mean?
2)GST paid
3)GST payable
which are allowed as expenditure and why?

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4 Replies

sabyasachi mukherjee (26273 Points)
Replied 19 April 2023

Pls clarify these amount collected from whom.
you cannot impose tax on amount collected.

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Sujana (92 Points)
Replied 19 April 2023

GST collections from customers

CA Rakesh Ishi (Working at Private Company) (7995 Points)
Replied 19 April 2023

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

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