Allowability of write off of accumulated gst credit, Income Tax

[manish rupani]

I would like to know whether accumulated GST credit due to inverted duty structure, of earlier years and also not able to get refund from GST authorities can be claimed as an expense / writing off under section 37(1) of the Income Tax? If yes, please provide me any supporting documents or case laws. Thank you in advance.

Posts / Replies

[Padmanathan Kollengode]

In my personal opinion, it is allowable expenditure and not a prior period expenditure. This is because it becomes expenditure only when it decided to be written off based on the position in GST law.

[manish rupani]

Thanks a lot Shri Padmanathan Kollengode

[Charu Tyagi]

As per Section 37, Any Indirect taxes or any interest thereon shall be allowed as expense subject to section 43 i.e. Payment actually made. So, therefore writing off accumulated balance of GST is allowable deduction.