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valuation of closing stock

Mohit lodhi (student) (952 Points)

03 October 2018

how to value closing stock in balance sheet...
1. As per section 145A (inclusive GST)
or
2. As per AS 2 (Exclusive GST)

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harsha (Article) (208 Points)
Replied 03 October 2018

as per IT Act only

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aradhana upadhyay (151 Points)
Replied 04 October 2018

Firstly it depends on whether you are eligible for GST input tax credit or not. If yes, do not include GST amount. If no, you should include such amount since it will be your cost.
Secondly, when the question is about reporting an item in the Balance sheet of the assessee, it has to be as per AS/ Ind AS, as the case may be.
So, for balance sheet, your closing stock should be as per AS-2, also see the first GST ITC criteria.
But for 3CD reporting under ICDS, it should be as per section 145A, i.e. inclusive of GST

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