payment via book adjustment – OnlineTaxUpdate

The West Bengal, AAR in the case of Paragon Polymer Products (P.) Ltd., held that the claim of input tax credit by the taxpayer cannot be denied u/s 16(2 of the CGST Act, 2017 when payment is settled through book adjustments because the law has not put any restriction on such adjustments.

AAR GST Article

ITC is permissible when the consideration is settled via Book Adjustment

byCA Bimal Jain29/03/202429/03/2024

The West Bengal, AAR in the case of Paragon Polymer Products (P.) Ltd., held that claiming credit of input tax by the assessee cannot be denied under section 16(2) of the CGST Act when payment is settled through book adjustments because the law has not put any restriction on such adjustments.

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