TaxTMI 
TaxTMI 
TaxTMI 
GST is paid under GST Interest and Penalty Waiver Scheme before 31.03.2025. The application for waiver is made after March and Order is received post March 2025. Can GST paid be claimed as expenses of FY 2024-2025 ? Or the same will be allowed in FY 2025-2026 when the order is passed.
GST Paid whether allowed as expenses
Mihir Modak
GST paid before March 31, 2025 under waiver scheme recognised in FY 2024-25; deduction limited to net tax actually borne GST paid before 31.03.2025 under the waiver scheme should be recognised in FY 2024-25 in the year of actual payment; the later waiver order issued in FY 2025-26 does not change the year of deduction. However, GST is not a deductible expense where input tax credit is available-only net tax actually borne is relevant. The timing of the application or order is immaterial for recognising the payment in the earlier fiscal year. (AI Summary)