Company X is Composition Dealer,but he wrongly raises invoice as a regular dealer and also charges CGST/SSGST/IGST in his invoice.The buyer say Y is unaware that X is a compostion dealer and receives the purchase invoice -showing CGST/SGST/IGST amount and therefore claims it in his monthly return .Now what shall Y do on becoming aware that X is not a regular dealer but Composite dealer? Also what sort of Penalty and Interest may the Officer ask for wrongly claimng the input CGST/SGST/IGST?
Menu
Composition dealer who raises invoice as regular dealer?
Replies (4)
Y should reverse all the Input tax taken from composition invoice.
Reverse the ITC with Interest 24% As per section 50 CGST Act.
But how should he reverse?
If Y issue a debit note for the tax amount?
Also what should be accounting entry?
He should reverse itc in table 4 gstr3b.under that itc reversal others.
pls pay interest along aur the reversal.
accounting entry
DR that party name(recover gst amount from them)
CR Cgst payable
CR Sgst payable
pls pay interest along aur the reversal.
accounting entry
DR that party name(recover gst amount from them)
CR Cgst payable
CR Sgst payable
Recent Topic
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
- What's the ONE thing about GSTR-2B / IMS reconcili
- Is GST Registration Mandatory for Freelancers in I
- ITR TO FILE
- Shift of Place of Business from one state to anoth
- Form 10E u/s. 89(1). Need clarification because Ex
- Long Term Capital Loss - Tata Capital unlisted sha
Related Topics
CAclubindia
