Stock In Trade Valuation for ITR with GST or Without GST

This query is : Resolved

TRIBHUVAN PUROHIT (Querist)
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20 November 2019 Sir,
I have faced one issue, we valued Cost at Lower Price including GST and reported the same in BS for AY19-20
But it was informed that the Valuation reported should be excluding GST.

Please inform what is correct? whether to include GST with COST or not?

Awaiting reply,
Thanks in Advance

Tribhuvan

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)
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20 November 2019 According to accounting standard all the duties and taxes for which credit will be taken to be excluded in the value of stock . similarly all the freight inward and packing charges incurred in the purchase of material to be added to the stock. As GST is eligible for credit as material is procured for furtherance of business , the GST amount to be excluded in the valuation of stock.