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Delayed Payment

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Md. Abdul Kalam

CEO

291 Points Posted on 22 June 2021

Dear experts..i got a query which is like if we provide services to any organization and the payment against service we receives after 2-3 months in this case how we would show this in GSTR3B? Like we provided services in May raises Bill against it in the same month and payment of this service would be received in August how would we treat this in GSTR3B return? Should we show this Bill in May GSTR3B return and pay tax without receiving it from the party or organization or should we wait till payment is received then pay tax and file return?

Please answer my query..

Thanks in advance.

Replies (3)

Quick Summary

This discussion clarifies how to handle delayed payments for services provided in India under the GST regime. Unlike previous tax systems, GST requires tax payment based on the invoice date, not the payment receipt date. Therefore, if you raise an invoice in May, you must declare and pay the GST in your May GSTR-3B return, even if payment is received months later. The general rule is to pay GST for the month in which the invoice is raised or payment is received, whichever comes first.

CMA Poornima Madhava

CMA

9106 Points Posted on 22 June 2021

Unlike under service tax regime, there is no concept of payment of tax on receipt basis. For any invoice generated in May, tax to be paid during June on self assessment basis or on fixed proportion. You may opt for quarterly return if eligible.