Prior period expense

This discussion clarifies the tax deductibility of prior period expenses, specifically when a bill received after year-end is accounted for in the next financial year. For GST, input tax credit can generally be claimed up to the September GSTR3B return of the following financial year, provided it's not a block credit. However, under Income Tax rules, prior period expenses are typically not allowed as a deduction, referencing IND AS 8. Specific advice is given regarding legal fees and Reverse Charge Mechanism (RCM) for GST.