Gst on service cancelled

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This query is : Resolved

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If you've collected and paid GST on an advance for a service that is subsequently cancelled, you can reclaim the GST paid. According to CBIC guidance, you should issue a credit note to the buyer, including the GST, to square off the transaction. This process allows you to recover the tax already remitted to the government.

Swamy

Swamy (Querist)
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27 March 2020 Received an advance for a service on which Gst is collected & paid to the government. But in the next month service is cancelled & the customer ask for the refund of advance. Can I claim the Gst already paid from the government

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 March 2020 Issue credit Note with GST thereon

Extract from CBIC GST flyer:-
if the tax invoice has already been issued, a credit note will have to be issued in order to square off the transaction.