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Is 'gst paid' can be claimed as an expense under income from business and profession ?

CAvishalmehta (Learner) (44 Points)

28 June 2018

sirji,

As VAT paid on Goods, we claimed as an expense in IFB&P similarly can GST paid be claimed as expense under business ?

relp ASAP

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18 Replies

Mohit Joshi (17 Points)
Replied 28 June 2018

NO , GST IS THE TAX THAT YOU ARE FORWADING TO THE GOVERNMENT WHICH YOU HAVE COLLECTED FROM CONSUMERS OR BUYERS , SO NO IT CANT BE TREATED AS EXPENSE , IT WILL BE IN THE HEAD DUTIES AND TAXES

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 28 June 2018

Yes, the additional amount of GST paid after claim of ITC, will be transferred to P & L acc......

2 Like

Pawan Jaiswal (Chartered Accountant) (39 Points)
Replied 28 June 2018

GST amount paid to supplier is to be claimed as ITC, but if ITC is not allowed in any case then it can be claimed as Expense in P&L.

CAvishalmehta (Learner) (44 Points)
Replied 28 June 2018

Thanks for the response,

But since VAT was similarly shown under duties and taxes, and was allowed (related to goods) as an expense under IFBP.

CAvishalmehta (Learner) (44 Points)
Replied 28 June 2018

Originally posted by : Dhirajlal Rambhia
	Yes, the additional amount of GST paid after claim of ITC, will be transferred to P & L acc......

Agreed

Thanks sirji... hope it will be helpfull for others too....

1 Like

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 June 2018

But in GST additional amount of GST paid is stands in CASH Ledger of portal , how can you claim expense for the same ,.. it can be setoff only againt liability or can claim as Refund

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 28 June 2018

This is the position as of today. Once GST returns are regularized, it will be verified with stock statements.

Secondly refund can be claimed only if rate structure differ, not otherwise.

So in simple terms the GST paid over purchased goods which cannot be sold or lost due to theft or damage will be transferred to P&L acc.

1 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 28 June 2018

SIR DHIRAJLAL JI

BUT IAM SAYING REFUND FROM CASH LEDGER (THE EXCESS DEPOSIT GST) CAN BE CLAIM REFUND BY FILING RFD01 FORM

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 28 June 2018

Yes Dear that is correct........

But what about any unclaimed ITC over shortage or loss in inventories, .........its treatment in books of accounts?

1 Like

Narayan Shivhare (204 Points)
Replied 29 June 2018

only composition dealer can show GST payment in profit and loss account, normal taxpayer is collect GST from customers and it is not a expenses so it can not transfer to profit and loss ac.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 June 2018

sorry sir (Mr. Dhirajlal ji)

i misread your reply

1 Like

P.R.KABRA (PROFESSIONAL ACCOUNTANT) (121 Points)
Replied 05 July 2018

Composition dealer doesn't claim ITC. Hence GST paid by him is expense, in my opinion. But I am not sure whether it can be shown as direct expense or indirect expense.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 05 July 2018

When you are not allowed for its ITC, better to account it under cost of goods purchased, rather than indirect expense.

jitu kalsariya (surat) (22 Points)
Replied 04 September 2019

there is two method of gst shown in books , 1st is separately show gst amount in the sales and purchases ledger in such case its our duties & Tax shown under current liabilities and therefore it will be not shown in the p & l. ac but if we are not show gst separately ( aggregate amount including gst) in the books we can balancing amount paid to department can claim as expenses in p & L. ac...