Section 43B deduction for GST payment turns on actual payment before the return due date, subject to verification.

GST liability is deductible under section 43B when actual payment is made before the due date for filing the return, and the audit report entry showing the amount as outstanding is not ative on that point. The decisive factor is the payment date, so a return-processing adjustment cannot stand if the liability is verified as having been deposited in time. The matter therefore depends on evidence of payment, which the assessee must produce for verification by the Assessing Officer; if confirmed, the disallowance is to be deleted.

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Issues: Whether the GST liability paid before the due date for filing the return was allowable as a deduction under section 43B, and whether the adjustment made in processing the return could be sustained.

Analysis: The assessee had disallowed the GST liability in the computation, but also asserted that a substantial part of the amount was actually paid before the due date of filing the return. The Tribunal noted that the disallowance in the tax audit report reflected the liability as outstanding on the date of the report, but the decisive factor for section 43B was the actual date of payment. Since the available material indicated that the amount may have been deposited before the due date, the matter required verification by the Assessing Officer, and the assessee was directed to produce evidence of payment.

Conclusion: The issue was allowed in principle in favour of the assessee, and the disallowance was held to be liable for deletion if the payment is verified to have been made before the due date of filing the return.

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