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GST ON BAD DEBTS

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NOOHUNNAJEEULLA KHAN Harihar

79 Points Posted on 29 December 2020

I have sold goods vide inv dated 20th may 2020. But party didn't paid till date, he is not in a position to pay, now i want to book it as bad debt in my books, can i revrse the output gst of the same. if yes what document i have raise.

Replies (3)

Quick Summary

If a customer hasn't paid for goods sold and is unlikely to, you may be able to claim back the output GST paid. This typically requires the debt to be outstanding for at least six months from the invoice date. You'll need to issue a credit note to the buyer to adjust the GST.

Balamurali Unnithan MS

STUDENT

1631 Points Posted on 30 December 2020

You can claim , after 6 months from the invoice date , you have a proper GST invoice !

And check you pay the output tax liability & its reported in your accounts .

& issue a credit not to the buyer regarding the same ...!