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Bad Debt in GST

CA Final 456 views 6 replies

Anand Thakur

1 Points Posted on 08 July 2019

if we sale at..month end and return has been filled for such sale at the end of month...and in subsequent months such sale become BAD DABT .....the such amount or GST can be refunded or ITC available for this or not????

Replies (6)

rishi

student

408 Points Posted on 08 July 2019

you could issue credit note and reduce your tax liability subject to reversal of itc by the recipient.

Anand Thakur

4 Points Posted on 08 July 2019

Sir..thank you so much for your reply and time....can you more elaborate..this process

kuldeep Singh

chartered accountant

50 Points Posted on 08 July 2019

Hi Anand as such there is no provision of getting refund for sale made which later on turned in bad debts.

rishi

student

408 Points Posted on 08 July 2019

issue credit note(reduces tax liability) in the name of recipient, consider it in your return of the month in which it is issued by you. if credit note is taken into account by both the supplier and recipient in their respective (valid) returns,then your liability shall stand reduced

Anand Thakur

4 Points Posted on 08 July 2019

Sir thr is one problem....we have no connection with the recipient.....it is clearly bad debt....so we are trying to save our tax amnt.....can we take ITC on credit note ... without it will not mention by recipient in his return.??...or some other way where recipient not involved..

JIMMY CHAUHAN

10 Points Posted on 09 July 2019

Continuing the query raised by Anand i feel there is a practical difficulty in ensuring ITC not availed by recipient of Service. More or less such recipient who do not pay you money and considering that it is evident most of them will turn a blind eye to any of your questions or any other correspondence. Hence there is a practical lacuna in raising a credit note in case of Bad debts.

I am sure others might agree and may want to add on difficulties faced by Service Provider.