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    • Question

      A company pays goods transporters ₹2,00,000 but no GST

      invoice received so cannot claim input tax credit. The accounting effect on GST payable and expenses:
      A GST input claimed immediately Correct Answer Incorrect Answer
      B Expense debited ₹2,00,000; GST input not claimed until invoice available Correct Answer Incorrect Answer
      C Recognise capital asset Correct Answer Incorrect Answer
      D Defer expense indefinitely Correct Answer Incorrect Answer
      E Treat as contingent liability Correct Answer Incorrect Answer

      Solution

      ITC can be claimed only upon valid tax invoice; otherwise expense recognised.

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