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DEBTORS NOT PAYING FOR MORE THAN 180 DAYS

RAMAPRASAD (MBA) (246 Points)

25 January 2020

I know there is clause that we can claim back the GST paid on behalf of debtors who have not settled our accounts for more than 180 days.

But I wanted to know how to claim that

Regards
RAMAPRASAD

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20 Replies

Roshni (Studwnt) (1141 Points)
Replied 25 January 2020

If this becomes reality...gst will become more complicated

RAJA P M ("Do the Right Thing...!!!") (127162 Points)
Replied 25 January 2020

@ Mr RAMAPRASAD.,

But I wanted to know how to claim that...?

- Through Credit Note and Show the same in GST returns...

1 Like

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 25 January 2020

How is it possible?
Can You explain this one?

CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 25 January 2020

Dear Ramprasad Ji,
Law has provided this provision for the person who is claiming ITC. If he has not made payment within 180 days from date of invoice, he has to reverse the ITC which he has claimed and he can claim it back in the month in which payment is made.
I have doubt about this that if he has not made payment then you should take that GST back because you have made the supplies and you are duty bound to pay taxes on that.
Nevertheless, let's see what other experts suggest.
Hope you understood my point.

Regards

CA Kiran Sutrave (CA) (428 Points)
Replied 25 January 2020

It is Creditors and not Debtors. Agree with Mr. Aggarwal

RAJA P M ("Do the Right Thing...!!!") (127162 Points)
Replied 25 January 2020

Check Out once again...
The query is not related to Creditors & ITC, it's for debtors. Who is not settle the bill amount...

Anup Agarwal (1184 Points)
Replied 25 January 2020

Mr. Ramaprasad can you please be more specific about your query?

RAMAPRASAD (MBA) (246 Points)
Replied 26 January 2020

Mr. AGARWAL

For my debtor I am a creditor. Going by your suggestion I have a right to claim back the tax for the money which I have not received

RAJA P M ("Do the Right Thing...!!!") (127162 Points)
Replied 26 January 2020

Yes... You can go with Credit Note and reverse the output tax...

Note : Credit note can be issue on or before filing of September GST returns or Annual return which is earlier...

RAMAPRASAD (MBA) (246 Points)
Replied 26 January 2020

Mr.RAJA

Should I raise CN for the amount equivalent to GST or for the entire Invoice amount. If I raise entire Invoice amount then the party who has not paid will be relieved of his payment obligations

Roshni (Studwnt) (1141 Points)
Replied 26 January 2020

By raising credit note it will amount to no transaction took place. same as sales returns

RAJA P M ("Do the Right Thing...!!!") (127162 Points)
Replied 26 January 2020

If You are received any amount against the invoice then You can issued CN for the balance amount (Taxable + Tax)

Anup Agarwal (1184 Points)
Replied 26 January 2020

If your debtor has not paid you within 180 days then ITC shall be reversed by your debtor.

Now if you want to get your goods back as sales return then you should have raise a credit note.
if you are thinking to claim only money against your sale invoice, then you nothing required to issue.

RAMAPRASAD (MBA) (246 Points)
Replied 26 January 2020

Mr.ANUP

Don't you think this clause is flawed.HOW a recipient of the goods who is not paying the amount of supply will voluntarily reverse the input tax claimed by him.