14 September 2020
Dear Experts, Ours is a limited company. Few clients paid advance in the years 2017/2018 but have not paid balance amount nor are responding to our calls to pay the balance amount and take the goods. No GST was paid for these advance receipts earlier. So, we are converting these advance receipts to cancellation charges (indirect income). How do we show it in accounting in GST? Is GST to be paid for such amounts? Please clarify.
15 September 2020
In my opinion, GST is not required to be paid as there is no supply has taken place in this case. In accounting these are credit balances written back. IN GST return you can show it under non-gst supply as that headings include the cases of no supply.
CAclubindia
