sirji,
As VAT paid on Goods, we claimed as an expense in IFB&P similarly can GST paid be claimed as expense under business ?
relp ASAP
Is 'gst paid' can be claimed as an expense under income from business and profession ?
Replies (18)
Quick Summary
NO , GST IS THE TAX THAT YOU ARE FORWADING TO THE GOVERNMENT WHICH YOU HAVE COLLECTED FROM CONSUMERS OR BUYERS , SO NO IT CANT BE TREATED AS EXPENSE , IT WILL BE IN THE HEAD DUTIES AND TAXES
Yes, the additional amount of GST paid after claim of ITC, will be transferred to P & L acc......
GST amount paid to supplier is to be claimed as ITC, but if ITC is not allowed in any case then it can be claimed as Expense in P&L.
Thanks for the response,
But since VAT was similarly shown under duties and taxes, and was allowed (related to goods) as an expense under IFBP.
| Originally posted by : Dhirajlal Rambhia | ||
 |
Yes, the additional amount of GST paid after claim of ITC, will be transferred to P & L acc...... |  |
Agreed
Thanks sirji... hope it will be helpfull for others too....
But in GST additional amount of GST paid is stands in CASH Ledger of portal , how can you claim expense for the same ,.. it can be setoff only againt liability or can claim as Refund
This is the position as of today. Once GST returns are regularized, it will be verified with stock statements.
Secondly refund can be claimed only if rate structure differ, not otherwise.
So in simple terms the GST paid over purchased goods which cannot be sold or lost due to theft or damage will be transferred to P&L acc.
SIR DHIRAJLAL JI
BUT IAM SAYING REFUND FROM CASH LEDGER (THE EXCESS DEPOSIT GST) CAN BE CLAIM REFUND BY FILING RFD01 FORM
Yes Dear that is correct........
But what about any unclaimed ITC over shortage or loss in inventories, .........its treatment in books of accounts?
only composition dealer can show GST payment in profit and loss account, normal taxpayer is collect GST from customers and it is not a expenses so it can not transfer to profit and loss ac.
sorry sir (Mr. Dhirajlal ji)
i misread your reply
Composition dealer doesn't claim ITC. Hence GST paid by him is expense, in my opinion. But I am not sure whether it can be shown as direct expense or indirect expense.
When you are not allowed for its ITC, better to account it under cost of goods purchased, rather than indirect expense.
there is two method of gst shown in books , 1st is separately show gst amount in the sales and purchases ledger in such case its our duties & Tax shown under current liabilities and therefore it will be not shown in the p & l. ac but if we are not show gst separately ( aggregate amount including gst) in the books we can balancing amount paid to department can claim as expenses in p & L. ac...
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