Bad Debts in GST Return

if you want to write off an old invoice that was issued 1.5 years back, you should treat it as a bad debt and issue a credit note in your GST return. The credit note will help you adjust the GST liability you had reported earlier when the original invoice was issued.

Here's what you should do:

1. Issue a Credit Note: Generate a credit note with the details of the original invoice that you want to write off as a bad debt. The credit note should include the relevant GST details, such as the original invoice number, date, and the amount of GST being adjusted.

2. Show in GSTR Return: If you are filing regular monthly or quarterly GSTR returns, you should include the details of this credit note in the respective return for the period in which you decide to write off the invoice as a bad debt. Make sure to adjust the relevant GST liability and report the negative value accordingly.

3. GSTR 9 Return: When you file your annual return (GSTR-9), you should ensure that the adjustment made through the credit note is correctly reflected in the annual return. The figures in your GSTR-9 return should reconcile with your accounts, including the write-off of bad debts through credit notes.

For further more detailed information on this topic visit: GST Annual Returns

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As per my knowledge there is no any concept of Bad debts return off in GST Law. If any Credit Note prepared based on the issue, department will not accept the reversal of ITC.