Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Can we cancel Invoice of Service Tax now & Refund amount recd?

277 views

Save Share

Join Us Follow Us Add as Source

Esha agarwal

N.a

45 Points Posted on 24 January 2020

Dear All,

I have a query regarding the Cancellation of the Invoice Dated 31st March 2017 issued in the Service tax regime in the Month of Jan 2020 ( Regime of GST).

Party has paid us 65% upfront payment at the time of booking and thereafter hadnot taken any services and dint paid as well. But now they are active and asking to Cancel the invoice issued and refund the amount of 65% which has been paid already by him.'

Can we decline the refund and Cancellation of invoice since its already 2.5 Years ??

Please inform with the relevance to the Service tax and GST Rules.

Thanks & Regards

Esha Agarwal

Replies (5)

Quick Summary

A user is asking if they can cancel a Service Tax invoice issued in March 2017, now in January 2020 under the GST regime. The client paid 65% upfront but never received the services and is now requesting cancellation and a refund. The user wants to know if they can decline the refund and cancellation due to the significant time lapse and seeks clarity on relevant Service Tax and GST rules.

Roshni

Studwnt

1141 Points Posted on 24 January 2020

You can issue refund voucher to them.

Spurto Consultancy Services

Consultant

1891 Points Posted on 24 January 2020

You can issue refund to the party as per your company policy but that will be under the GST regime.

Esha agarwal

N.a

45 Points Posted on 24 January 2020

Hi,

We can issue them Debit note for the Whole amount. But GST will be reversed @ 18%?? Service tax was charged @ 15% at the time of Issuance. Please provide clarity