The audit report for the relevant AY mentioned that GST payable on rent received by the Assessee remained unpaid till the date of Audit report. The Assessee submitted that disallowance u/s 43B could only be made against income from business & profession whereas the GST in his case related to rental income. The return of Income if the Assessee reflected income under both the heads i.e. house property and business and profession. It was further submitted that section 23 of the Act with respect to deduction on payment basis in case of tax paid covered only taxes levied by local authority and it was not relatable to GST levied on rental income. Perusal of computation of income revealed that the assessee reflected rental income excluding the GST component. The Ld. DR was asked as to how any disallowance was possible when the amount of GST itself was not reflected in the return of income. It was observed that The DR requested that these facts needed to be verified. Accordingly, the matter was remanded back to the CIT(A) to determine the above fact as well as whether the income component is rental or from business and profession, if it is rental income whether it has been returned. If it is not returned, there is no occasion of making a disallowance but if it is returned then the issue needs to be determined in the light of section 23 which allows deduction of “local taxes” from rental income on payment basis and if GST is covered under the section. (AY. 2018-19).