GST Input Write Off, Goods and Services Tax - GST

[Ethirajan Parthasarathy]

Query

A dealer has some unutilized GST input tax in electronic credit ledger. From a particular date, the goods dealt by him becomes non taxable and hence writes off the balance of input tax in electronic ledger.

Can this write off be disallowed u/s 43B , since relevant input taxes were incurred in earlier years or can be disallowed as “ Prior Period expenses”.

Posts / Replies

[SANJAY JAIN]

Instead of writing off the input tax amount, you can add the same to cost of inventory and it will not be a prior period item. However you need to do the impairment test i.e. valuation of inventory at cost or Net realisation value whichever is less.

[DR.MARIAPPAN GOVINDARAJAN]

Whether the ineligible input tax credit can be reversed?

[Ganeshan Kalyani]

The input tax credit can be reversed from the GST portal also.