i have purchased some goods which were in transit and were detained and demand was created us 129(1) and the payment was made
My queries are
1 How to treat tax and penelty deposited as per the demand
2 Can i adjust the tax paid under demand with my output liabilities on sale of such good
3 Accounting of Demand 5000 Tax and 5000 penalty
Tax paid under Section 129(1) for detained goods should be accounted for as a "Deposit Under Protest" (asset) and the penalty as an expense in your books. You cannot directly adjust this tax against your routine output liability in GSTR-3B; if the tax demand is disputed, you must seek legal recourse through the appellate process to claim a refund or adjustment.
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