Whether the amount of Creditors balance unclaimed/untraceable and written-off/Back by way of crediting P&L Account is taxable under GST

1. Background

In the course of business, it is not uncommon to find outstanding balances in the names of trade creditors that remain unclaimed or where the supplier becomes untraceable. Many entities, after a reasonable period, choose to write off such balances by transferring them to the Profit & Loss Account. While the income-tax implications of such write-offs are well-settled under Section 41(1) of the Income-tax Act, 1961, the question arises—does such a write-off attract GST?

Download 151 Land Mark Judgements of The Supreme Court

The All India Federation of Tax Practitioners (AIFTP)  and other leading professional organizations have issued a publication containing 151 land Mark judgements of the Hon’ble Supreme Court of India.

The judgements cover 

:- Direct taxes,
:- Indirect taxes and 
:- Allied laws.
 A pdf copy of the publication is available for download