15 April 2024
Total invoice value = 1000000 + 3% GST = 1030000/ on dated 15-09-2018. The whole consideration amounting 1030000/- not received by supplier hence the amount debited to Profit and Loss acocunt. The case came under GST scrutiny for F.Y 2018-19 and department raised demand of upaid GST 300000 with Interest. a) Are we liable to pay GST where the whole amount has already been debited to bad debts vide Audited Balance Sheet. b) Please provide us remedy.
15 April 2024
When you raised the bill in sep 2018, i presume it must have been shown in gstr1 and Gstr3b of sep2018 and tax has been already paid through 3b. As such, no tax can be demanded again while charging the same to PL on account of becoming bad debts.
15 April 2024
the issue is that you have written off a GST receivable amount. You should have only debited P&L with 10 lakhs and let the remaining about be parked as receivable. for the issue of GST payable or not, Ashwani has already provided for the response. Check your GSTR-1 and 3B for the relevant period. If, for any reason, this invoice is not mentioned in the GSTR-1, you will have to pay the GST component. even cancellation of invoice (issuance of credit note) does not extinguish the liability if it is done after the permissible period ie 6 months from the end of the financial year or due date of filing GSTR-9.
CAclubindia
