| Question And Answer | |
|---|---|
| Subject: | Disallowance under section 43B in case of net method |
| Category: | Income-Tax |
| Querist: | subodh vora |
| Answered by: | Law Intern |
| Tags: | GST, Section 43B |
| Date: | November 23, 2025 |
If accounts are maintained on net basis (excluding GST ) and if any gst is outstanding on year end , can there be any disallowance under section 43B considering the provision of ICDS II, Section 145A. Can a view be taken that since such expenses are not claimed , there can be no disallowance. Can department take a view that GST is part of trading receipt and accordingly outstanding GST is to be disallowed.
The issue is not free from doubt. The better view is that the GST portion is never claimed as expense & is only a statutory liability. Therefore, there is no “amount payable” forming part of purchase/expense that remains unpaid which can be hit by 43B(h).
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