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Delayed Payment In GST

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Md. Abdul Kalam

CEO

553 Points Posted on 29 April 2021

Dear experts, we have a proprietorship firm we provide services of which we charge fees but we are paid after 2-3 months later so my question is if we generate bill of services of April month of which we receive payment in July or August how would we show it in GSTR3B of April as we didn't collect the GST to pay?

Please answer of my query,

Thanks in advance.

Replies (2)

Quick Summary

This discussion addresses a common GST query regarding delayed payments for services. The user's proprietorship firm bills for services in one month but receives payment 2-3 months later. They are unsure how to declare GST on their GSTR3B for the month services were rendered, as they haven't collected the GST amount yet. The consensus is that GST liability is recognised on an accrual basis, meaning tax is due when the service is provided, not when payment is received.