Provision of Expenses

I have proforma expense invoice as on 31/03/2019, details are as follows

Basic value = 2,50,000/- , CGST = 22,500/- , SGST = 22,500/- , Total = 2,95,000/-

At the time of making provisional journal entry on 31/03/2019 which amount I have to consider?
Option (i) Basic + GST = 2,95,000/- ( Total proforma invoice value )
(ii) Only basic = 2,50,000/- & GST will be recognized when tax invoice will receive

 

Whether answer is change if I am not eligible to take this credit?

Replies (5)
As per my understanding, we book provisional entry for the purpose of recording expense in the correct period. So we should book only basic amount in your given example. Also as per the GST law, we can claim gst itc only on the basis of tax invoice. Though you may not claim credit while filing gst return, department may question the same if selected for scrutiny. So we should book the basic amount. 👍
Can You give details of the Expense...?
Bus hire charges
Originally posted by : CA Hiteshi Bhadiyadra
Bus hire charges

 

Book total value in Provision (As per audit fee bills)...

Plz clear when we have to book only basic value in provision

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