GST OUTPUT LIABILITY

One of my client supply a goods to firm X of rupees 20 lacs approx during the f.y 19-20 but this firm is run away (bhag gyi) and not paid the outstanding dues.

So, what action we can take now ?
Please advice ...
Replies (2)
Quick Summary
This discussion addresses how to handle GST output liability when a client absconds without paying for goods supplied. Once an invoice is issued, GST is typically payable. However, if significant efforts to recover the debt prove unsuccessful, it may be considered a bad debt. The advice suggests writing off both the invoice value and the tax amount, with a question raised about reversing the output tax liability.

Once invoice is issued you would pay the gst. Bad debt arises only if the dues are unable to collect after taking much effort. You have to write off both the value of the invoice and also the tax portion.
Thanks sir, can we reverse output tax liability

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