Reversal process of mobilisation advance with GST

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DILIP KUMAR BARANWAL (Querist)
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18 February 2020 We issued work order to one of hiring agency on monthly basis @Rs.8 Lakh excluding GST. We issue mobilisation advance of Rs. 24Lakh plus GST on July'17. Terms of the contract is that if equipment is hired for more then 12month, mobilisation advance with GST will be refunded. Equipment were hired till Apr.'19.He has an outstanding of 28.50 lakh. Now kindly advice how we will collect credit note with GST from the part and how we will account for the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2020 Obtain credit note with GST treating it as discount and adjust against outstanding dues.

DILIP KUMAR BARANWAL

DILIP KUMAR BARANWAL (Querist)
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18 February 2020 Thanks, But GST credit for F.Y. 2018-19 is possible at now?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2020 Consider it as current year discount. Discount eligible after 12 months only.

DILIP KUMAR BARANWAL

DILIP KUMAR BARANWAL (Querist)
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18 February 2020 Party Last working till Apr.'19. If we account for credit note for GST for July '17 against outstanding of Mar.'18 as discount, then reversal of GST credit is possible.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2020 Raise credit note for current settlement with GST not of July 2017. Discount eligible only after 12 months. So credit against latest billing.

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