Question ID :
effect of section 145A on entities where GST refund is received
Effect of Section 145A of income tax in case of entities in which
1. gst is not charged on export sales, and
2. ITC on inputs get refunded in subsequent years.
If inclusive method is followed to compute income, then
1. Purchases would include ITC
2. But there is no gst on export sales
So decrease in profits would take place because of sec 145A.
Further, when refund of itc is received in subsequent years, it will be added to income of that subsequent year.
Is this analysis correct?
Pls guide. Thank you.
Feb 02, 2022