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know correct credit taken by the company

ITC / Input 145 views 6 replies

Onz SaM KuMaR

54 Points Posted on 10 August 2018

Team members of LPMG , CAs , are supposed to go to Mumbai for audit in the month September 2018 . LPMG is registered under GST LAW at Delhi .Air tickets of all proposed team members have been booked in May 2018 for travelling from Delhi to Mumbai , details of which are Air tickets price INR 100000 and GST INR 5000
Airline company has issued the invoice for above said ticket in the month of 2018 and filed it's GSTR 1 accordingly. LPMG has claimed credit of INR 5000 in the month of may 2018 on the basis of GSTR 2A.

Q1. whether credit taken by LPMG is correct as per legal provisions of GST law?

Replies (6)

SEMM1967

student

46 Points Posted on 10 August 2018

yes there is no such block credit in sec 17.
that means credit allowed

Onz SaM KuMaR

54 Points Posted on 10 August 2018

Assuming that the audit program gets cancelled, consequently LPMG decided to cancel tickets. Airline charged 50% of the amount as cancelled charges and refunded INR 52500 (50000+2500) to the LPMG .

Q2. As an Auditor of Airline company do you have any observation?

Asiya Begum

Chartered Accountant

687 Points Posted on 10 August 2018

In that case, the airlines will issue LPMG a credit note and refund the amount as the services are not provided. The credit note issued will be including GST so, LPMG has to reverse the credit to the extent mentioned in the credit note.