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”.
Can a Dealer Write Off Unutilized GST Input Tax When Goods Become Non-Taxable Under Section 43B? A dealer has unutilized GST input tax in their electronic credit ledger. When the goods they deal with become non-taxable, they write off the input tax balance. The concern is whether this write-off can be disallowed under Section 43B as it pertains to prior period expenses. One suggestion is to add the input tax to the cost of inventory, avoiding classification as a prior period item, with an impairment test required. Another response questions the reversal of ineligible input tax credit, with a final response noting that input tax credit can be reversed via the GST portal. (AI Summary)
TaxTMI 
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TaxTMI 
