ITC on Prepaid expense

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....TC on Prepaid expense<br> Query (Issue) Started By: - Narayan Pujar Dated:- 7-12-2024 Last Reply Date:- 11-12-2024 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Hi, Is there a need to reverse Input Tax Credit on prepaid expenses? Are there any case laws in this regard. Thank you in advance. Reply By RaamSrinivasan Kalpathi: The Reply: IMHO no reversal is required. Explanation to Sec....

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.....13(2) of CGST Act clearly delineates &quot;the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment&quot; ITC can be availed on or after the date of the service invoice. Reply By Ganeshan Kalyani: The Reply: Sir, can you please elaborate your query. Reply By KASTURI SETHI: The Reply: Dear Querist, What types of pre-paid ex....

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....penses are involved ? Pl. elaborate with an illustration for correct and complete reply. Reply By Narayan Pujar: The Reply: Hi, In case of Fire Insurance for Stock which is taken for calendar year, half of the expense belongs to current FY and the other half to subsequent FY. Here, the assessee is eligible for the ITC. But the question is how much of it? Since the half of the expense is being ....

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....considered as received in next FY, thereby treating it as prepaid in current FY, does it also imply that I am not eligible to credit proportionate to this half as per Section 16(2)(b)? Reply By Shilpi Jain: The Reply: Agree with view given by Mr. RaamSrinivasan Kalpathi<br> Discussion Forum - Knowledge Sharing ....