GST credit of Goods in Transit on 31st March

[Ashish Gupta]

What is the correct method to show for the current year in books of accounts and in GST returns of invoices for which Goods are in transit as of this 31st of March?

AI Summary

Debate on GST credit accounting for goods in transit: Record in April, adjust GSTR-3B for compliance. A discussion on a forum addressed the correct accounting method for Goods and Services Tax (GST) credit concerning goods in transit as of March 31. One participant suggested accounting for these goods in the next financial year, as possession occurs in April. Another participant agreed, indicating that the seller should show the invoice in March, reverse it in GSTR-3B, and take credit in April. A third participant concurred, advising that the purchase be recorded in April, with ineligible ITC shown in March's GSTR-3B to align with GSTR-2B, and eligible ITC claimed in April.