TaxTMI 
TaxTMI 
TaxTMI 
Hello Sir, Mr. X has taken ITC in GSTR 3B on Furniture purchased for his Office but has capitalised the GST in books of Accounts in F.y 17-18 (ie. not claimed ITC in Books). In 18-19 he realised his mistake and passed a journal entry in books for the GST Amt thereby reducing the cost of Furniture and claiming the ITC in Books. can he do So?
ITC taken in GSTR 3B but not recorded in books
varsha jain
Can Input Tax Credit be claimed on office furniture capitalized in 2017-18 after adjusting GST in 2018-19? An individual inquired about claiming Input Tax Credit (ITC) on furniture purchased for office use, which was initially capitalized in the financial year 2017-18 and not recorded in the books. In 2018-19, the mistake was realized, and a journal entry was made to adjust the GST amount, reducing the furniture's cost and claiming ITC in the books. Responses highlighted issues such as the gap between financial years, the prohibition of claiming both ITC and depreciation, and the implications of adjusting the asset's cost after the first year, including potential interest on the credit related to depreciation. (AI Summary)