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
19 Aug 2025 
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Recognition of GST payment depends on actual payment date; determines fiscal year for deduction despite later waiver orders.
Recognition for income-tax purposes of GST payments made under a waiver scheme depends on the date of actual payment: payments made before the fiscal year-end are recognised in that fiscal year regardless of the timing of a waiver application or order. Where Input Tax Credit is available, GST is not an expense. Treatment of interest and penalty components may be contested, with a view that such components are not allowable under income-tax law. (AI Summary)
Recognition for income-tax purposes of GST payments made under a waiver scheme depends on the date of actual payment: payments made before the fiscal year-end are recognised in that fiscal year regardless of the timing of a waiver application or order. Where Input Tax Credit is available, GST is not an expense. Treatment of interest and penalty components may be contested, with a view that such components are not allowable under income-tax law. (AI Summary)