We have written off Creditors due to quality issues. We have purchased material of Rs 1180000/-. The party has uploaded Rs 180000/- in our 2A. Now due to some quality issue we have not paid Rs 200000/- to the party and the same is being written off in books. My Question is 1 Do we have to reverse the GST element in Rs 200000/-. Since we have not received any GST Credit note from the said party on site upto March 2020. and the time limit to issue GST Credit note has expired. Still do we have to reverse credit. 2. Since come invoice are realting to VAT regieme on which excise credit and VAT credit was taken and the same was tranferred to TRAN 1 credit. Do we have to reverse the same. Since condition of written off and its reversal was not in Excise regime to my knowledge. 3. Can 180 Days payment clause can be used against us to reverse the credit.
CAclubindia
