This discussion addresses a common GST issue: claiming Input Tax Credit (ITC) for FY 21-22 when it was declared in returns and reflected in GSTR-2A, but mistakenly omitted from the company's books of accounts, which have since been audited. The core question is whether the ITC can still be claimed. Experts weigh in on the conditions required for claiming ITC under the CGST Act, including valid invoices, receipt of goods/services, supplier compliance, and ITC reflecting in GSTR-2B. The debate touches upon whether booking the tax as an expense in audited accounts invalidates the ITC claim and the possibility of rectifying such errors, especially after an audit.
@ CA Rashmi Gandhi How will you correct the audited books of accounts especially when all due dates have passed.... Input tax is being booked as expenses in audited books of accounts instead of recording as assets. Therefore the assessee and it's auditor both certify that credit of input tax is not available. The returns can be wrong but audited books of accounts even if wrong will have to be assumed correct until full revision of books of accounts and audit is done. This is the reason why reconciliations are made in GSTR-9C Are you really a CA because your concepts of not only GST but Books of Accounts and Audit are also really weak.