Accounting treatment

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Soumyadeb Dutta (Querist)
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13 June 2019 Suppose I am selling printing services on customised Product. I have got a job contract of printing designs on 10,000 pcs of t-shirt. After completion of work, I have delivered the products and GST invoice to the party. Now after few days, the party checked the printed t-shirts and found defect on all 10,000pcs and refuse to pay money.
Now my questions are :-
what would the accounting treatment in my books ?
as it is sell of service so I cannot raise credit note for sales return, so should I show the whole amount as discount allowed ?
Should I paid the output GST liability from my own pocket ?

please reply

Guest

Guest (Expert)

13 June 2019 what would the accounting treatment in my books ?
It is a case of services not accepted by the party. Same treatment like sales return.

as it is sell of service so I cannot raise credit note for sales return, so should I show the whole amount as discount allowed ?
You need to issue a Credit Note for return.

Should I paid the output GST liability from my own pocket ?
You need to pay GST on net services only as you have issued a Credit Note.

Soumyadeb Dutta

Soumyadeb Dutta (Querist)
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15 June 2019 Thank you very much sir for your reply

Guest

Guest (Expert)

15 June 2019 You're welcome.

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