Input ITC Claimed but payment not paid to suppliers

449 views 3 replies

Mohanraj J

1234 Points Joined March 2018

Dear Friends,
We supplied goods to our customer since Feb'20 to Mar'21. Our customer paid payment promptly to us for first 3 months only, after that they didn't make any payment to us, but claimed ITC for our sales invoices. As of now we paid GST about 12 Lakh particularly this customer only, and stopped to issue invoice for last 3 months. Anyone can assist me now, it is possible to revise the GST invoices? or any other suggestions?

Replies (3)

Dharmender kumar Jha

Accountant

208 Points Joined June 2012

You can issue credit note against that Tax invoices for last 6 mnths to reduce your taxliabilty, but in that you can just save your GST amount you are not gonna receive amount of goods which you have supplied to that customer.
Further there is a law if some one is not paying the amount related to Tax Invoice within a six month than he should reverse all input of that invoices ..... but there is no actionable law against it, means if anyone is not reversing their input the supplier can't take any action about this.

so, I think you should talk with your customer to pay the amount.

Mohanraj J

1234 Points Joined March 2018

Dharmender Bhai, thank u so much for your kind assistance. So, shall we issue credit Note for Oct to Mar only ? as well we didn't raise invoice for Jan to Mar.