Allowability of write off of accumulated gst credit

[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.

AI Summary

Writing Off Accumulated GST Credit as Expense Allowed Under Section 37(1) of Income Tax Act An individual inquired about the possibility of writing off accumulated GST credit, due to an inverted duty structure, as an expense under Section 37(1) of the Income Tax Act. A respondent opined that it is an allowable expenditure, not a prior period expense, as it becomes an expense when written off per GST law. Another contributor confirmed that under Section 37, indirect taxes or interest thereon are allowable as expenses, subject to Section 43, which requires actual payment. Therefore, writing off the accumulated GST balance is considered an allowable deduction.