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ITC for the financial year 2019-20

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Sunilkumar Gondkar

90 Points Posted on 19 February 2021

Hi
Some of the purchase invoices which were about 1 lakh have been missed out in fy 2019-20. Is there any chance to take into account during this year.
kindly guide regarding this.

Replies (2)

Quick Summary

If you've missed purchase invoices from FY 2019-20, they can be booked as a prior period expense in the current financial year (FY 20-21) under IND AS 8. However, it's important to note that the Input Tax Credit (ITC) for these expenses will not be allowed as per Section 16(4) of the CGST Act 2017. Additionally, these expenses are not permissible under the Income Tax Act.

prasad Nilugal

GST Practitioner & Accounts

9000 Points Posted on 19 February 2021

1) As per IND AS 8 , You can Book above purchases expenses as Prior period Expense in the Current Financial year F.Y 20-21 , if you have not booked last year and omitted .You have to show separately in Profit & Loss Account as " prior period expense for F.Y 2019-20 "

2) The ITC of the prior period Expense will not be allowed as per section 16(4) of the CGST act 2017

3) Under Income Tax act above expense are Not allowed .