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Can gst on previous months sales invoice which was missed be set off from itc of next month

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bhrat gupta

24 Points Posted on 14 July 2020

We have received advance (with 18% gst) for services (works contract) in May 2020. Services will be rendered in June, 2020.

However, we forgot to show advance received on services as taxable supply in GSTR3B of May, 2020 and thus did not pay gst on time. Further, there was no ITC available in May, 2020.

We are now showing it as taxable supply in June, 2020 GSTR3B and will have to pay interest @ 18% per annum for late payment of GST.

However, there is ITC available in return for June, 2020 for purchases made during June, 2020.

1. Can we offset gst payable (may output liability shown late in june return) with june ITC.

2. If yes, whether interest will be paid on gross amount (gst on total advance) or net amount (paid in cash after offset).

Replies (4)

Quick Summary

This discussion addresses a common GST oversight where advance received for services in May 2020, including GST, was not declared in the GSTR3B for that month. The user is now declaring this as a taxable supply in the June 2020 GSTR3B and paying interest for the late GST payment. The key questions are whether the GST liability from May can be offset against the Input Tax Credit (ITC) available in June, and if the interest will be calculated on the gross or net amount payable. The consensus is that offsetting is permissible, and interest is applicable on the gross amount of GST.