https://www.taxtmi.com/forum/issue?id=115293 A taxpayer claimed input tax credit (ITC) in GSTR 3B but capitalised the GST in the books for one year and later reduced the asset cost and recorded ITC by a journal entry in the next year. Core issues are proving non utilisation of ITC during the gap, whether the correction preceded the earlier year's balance sheet, the prohibition on claiming both ITC and depreciation on the same amount, and the limited availability of ITC on capital assets in the initial year, all of which affect tax accounting and reconciliation. en-us Wed, 07 Aug 2019 16:51:34 +0530 Thu, 23 Jan 2025 15:55:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=115293 A taxpayer claimed input tax credit (ITC) in GSTR 3B but capitalised the GST in the books for one year and later reduced the asset cost and recorded ITC by a journal entry in the next year. Core issues are proving non utilisation of ITC during the gap, whether the correction preceded the earlier year's balance sheet, the prohibition on claiming both ITC and depreciation on the same amount, and the limited availability of ITC on capital assets in the initial year, all of which affect tax accounting and reconciliation. Discussion-Forum GST Wed, 07 Aug 2019 16:51:34 +0530 https://www.taxtmi.com/forum/issue?id=115293