Recently i joined to the new group of companies. Here 12 companies accounts are maintained. But in all the companies Input GST kept under Direct Expenses and Output GST under Direct Income. Actually Input and output both will come under Duties and Taxes. which is the right way to maintain. here they telling as per CA requirements all are maintaining keep as it is.
29 March 2022
Input can be taken in expenses if ITC not available. However output tax always becomes part of liability. It cannot be taken as Direct Income as it will also be violation of AS-9 and also corresponding IND-AS which deals with revenue recognition
29 March 2022
If ITC is eligible and have not been claimed then they have been booked under expenses. You also need to check the GST returns as to how they are being filed. As a principle claim of ITC is optional. It is a right which can be exercised or forgone
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