Write off of creditors GST to Reverse or not
This query is : Resolved
25 September 2020
Dear Sir,
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.
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.
25 September 2020
In such a case 180 days payment clause not applicable in view part payment not made due to quality issues.
25 September 2020
Sir kindly reply to Q1,2 also
25 September 2020
1 No need of reversal as 2 A credit available.
2 No need of reversal in case excise and vat paid by seller.
2 No need of reversal in case excise and vat paid by seller.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
