• B2B and B2C

I buyed an insurance for my commercial vehicle last year in august and paid the amount with cheque however it didn't gave my gstin number bcz i was not eligible for itc but the bill is in the name of my firm and payment done from mu firm account.. as I haven't given my gst number so the seller of insurance may have showed the tax invoice in b2c rather than b2b in his gstr1..
So how can i list that in voice in my gstr2 ?? It should be list in exempt supply or unregistered dealer inward supply.. as the tax has been paid by me and he listed that in b2c as he didn't mention my gstin number in invoice.. so it is correct to not show that invoice in my gstr2 insted i can show in the tag gst not applicable and in income tax return i can show that? What to do now
Asked 3 years ago in GST

Since you wont be able to claim credit now, so you should not show it in any place since showing it in wrong heading is not advisable.

In income tax you can very well claim such deduction.

Chirag Maru
CA, Raipur
207 Answers

5.0 on 5.0

For the insurance payment made for your vehicle you can claim the same as an expense for your Income Tax Purposes. But as far as GST is concerned you will not be eligible to take the credit since the insurance company must have shown it as B2C. There is no need to show the same in the GSTR 2 form.

Ria Nagpal
CA, Ahmedabad
49 Answers
5 Consultations

5.0 on 5.0

Hi,

- First of all, you are not eligible for ITC on commercial vehicle though you shared your GSTIN with the vendor. It is an expense for you which you can normally claimed in your P&L.

- Over claiming deduction will land you in the problem in respect to tax, interest and penalty.

- In case of under claim there is no issue. 

 

Thanks

Vivek Kumar Arora
CA, Delhi
4432 Answers
549 Consultations

5.0 on 5.0

Dear Sir,

 

It is a business expenses, you can claim the same in financials.

 

You are not eligible for ITC.

Payal Chhajed
CA, Mumbai
5159 Answers
223 Consultations

5.0 on 5.0

Further, if you claim actual than investment it will lead to unnecessary penalties.

 

Under claiming-  No issue.

Payal Chhajed
CA, Mumbai
5159 Answers
223 Consultations

5.0 on 5.0

If no GST number provided then it will be B2C invoice.

Rajkumar Wagh
CA, Kolhapur
45 Answers

Not rated

For your first query yes you can claim it as expense in your income tax return.

For your second query if you show more amount than actual deduction then you can receive a notice asking for the proof of deduction and then same will be added to your income.

If you claim less amount than actual deduction you can revise your return and claim it.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4026 Answers
64 Consultations

5.0 on 5.0

Hi,

- In ITR, we only need to report turnover as per GST and not value of purchases. There would not be any problem.

 

Thanks

Vivek Kumar Arora
CA, Delhi
4432 Answers
549 Consultations

5.0 on 5.0

Hi

You cannot show it in GSTR 2. You can claim such expense under income tax. There would be no issue for allowance of expense under income tax.

Lakshita Bhandari
CA, Mumbai
5639 Answers
773 Consultations

5.0 on 5.0

Hi,

 

No, it would not create any problem.

 

 

Payal Chhajed
CA, Mumbai
5159 Answers
223 Consultations

5.0 on 5.0

It will not be a mismatch since Insurance expense is not in the nature of purchase. In GST return we do not show all the indirect expenses. Only those wherein you are claiming the ITC. Whereas for the Income tax purpose entire balance sheet is prepares showing all the income and expenses. 

Ria Nagpal
CA, Ahmedabad
49 Answers
5 Consultations

5.0 on 5.0

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