Prepaid Expenses in IT on which GST already paid

Manoj Punjabi (Accountant) (294 Points)

27 June 2025  

Dear Experts.

Please guide me on this query:

Advance paid for AMC for 2 years, bill received in FY24-25 with GST on full amount.

GST ITC claimed in same year FY 24-25.

1)      Now shall we show advance paid part as prepaid expense.

2)      If we show it as prepaid, it will appear as expense in next year FY25-26 without GST payment, as GST on whole amount paid in current year FY24-25.

How to proceed.

Please guide.