GSt on bad debt

There is a concept of ITC reversal if payment not honoured with in 180 days. Hence, reversal should be made.

PROVISION OF ITC REVERSAL IS AGAINST PURCHASE WHOM PAYMENT NOT MADE WITHIN 180 DAYS.

NO REVERSAL OF GST LIABILITY APPLICABLE TO SUPPLIER.

FOR REVERSING OF GST ON BAD DEBT SUPPLIER HAVE TO FIRST ISSUE CREDIT NOTE AND THEN HE CAN ABLE TO REVERSE GST ON SUPPLIES IN GSTR 1

TAX CREDIT NOTE AGAINST SALE IS ONLY POSSIBLE FOR GOODS RETURN WITHIN PROVIDED PERIOD OR FOR RATE DIFFERENCE.


IN MY OPINION NO BURDEN OF GST WILL REDUCE IN BAD DEBTS CASES.


ITS MY OPINION..

Bad debts happens only customer didn't make payment.if we didn't pay to supplier within 180 days itc reverse applicable.in this case GST should have been paid and need not pay again.

GST reversal through credit note only, within the permissible time. Bad debts will not attract GST. Its monitory issue, supply has been done legally.