Murali (Accountant) (26 Points)
11 January 2019Customer deducted Liquidated Damage but not received invoice for LD deducted.
My query in this scenario, how to treat LD Charges as a supplier ?
Can we raise credit note for Ld Charges?
If we can with GST OR Without GST and what is the HSN Code?
How to Take GST Credit (ITC)?
Kunjal Momaya
(2 Points)
Replied 12 January 2019
WE CAN SEE THIS IN GST PORTAL BUT NO PARTIES SHARE US A DOCUMENT FOR THE SAME TO UPLOAD AND TAKE GST CREDIT.
SINCE LIQUIDITY DAMAGES ARE TREATED AS SERVICE, ITS SAC CODE IS 9997. FOLLOWING IS SUPPORTING CASE FOR THE SAME.
(But the recent Advance Ruling in GST pronounced by Maharashtra Authority in the case of ‘Maharashtra State Power Generation Company Limited’ has given a rather opposed view as expected leading to further eruption of questions in regard to the matter by considering LD as separate supply under GST. It has brought LD under Entry no. 5 (2) (e) of Schedule II of GST Act vide SAC code 9997 (Other services) making it taxable at 18%. The Court has taken a literal interpretation in the said case by taxing LD where specifically mentioned in contract and deductible from contract price to be supply under GST.)
PLEASE HELP US ON HOW TO TAKE INPUT TAX CREDIT FOR THE SAME.
CAclubindia
