ITC NOT RECORDED IN BOOKS OF ACCOUNT

1) What is the date of Invoice? you have not entered in books of accounts
2) In which month you have claim ITC in GSTR3B ?.

Expenses Booked but ITC not separated in ledger in March 22 but ITC calimed in same month on bill basis.

What is the exact date of the Invoice ? .

31 March 22 of service bill

To claim input tax credit, you have to fullfill following conditions in section 16 (2) of the CGST Act .

1) You must have valid TAX Invoice with correct GSTN

2) You must received Goods or services

3) Supplier must deposit GST collected from you in Govt Account

4) You must filled all updated returns.

from 1.1.2022 , one more condition was added that , ITC must reflect in GSTR2B in order to claim ITC , however in your Case ITC reflected in GSTR2A

Also ITC should not be under Blocked credit under section 17(5) of the CGST Act.

Rectifiy the entry in current year

Legally speaking ITC will be denied

ITC will not be denied merely expenses are recorded in books with taxes.

@ CA Rashmi Gandhi

Are you really a CA or are you taking it like your other fake accounts?

It's not just books of accounts it's audited books of accounts. Moreover audited books of accounts are clear evidence of transactions accepted in court of law. Expensing the input tax by the taxpayer himself and then getting it audited is valid proof that he is not accepting input tax credits.

At most he can revise his books of accounts and revise audit report if at all other laws permit then only he will be able to claim ITC legally.

Input tax credit will not be denied merely expenses.

But rectification of errors are allowed if made erroneously. So, merely accounting of expenses inclusive of tax didn,t make it ineligible.

How can one justify that audit has been done erroneously?

Not erroneously, only expenses recorded inclusive of tax

When expenses recorded inclusive of tax then ITC not claimed.