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Non payment of sales

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Manohar Singh

214 Points Posted on 18 August 2021

sir
if any recipient of goods not makes payment of seller.
then is there any process/action can be take by gst department.
what if both are registered under gst act.
and what if the recipient is not registered under GST act.
please guide me.

thanks in advance

Replies (6)

Quick Summary

This discussion addresses what happens when a buyer fails to pay for goods. If the buyer is registered under GST and doesn't pay within 180 days, they must reverse their Input Tax Credit (ITC). For unregistered buyers, the concept of ITC reversal doesn't apply. The advice suggests keeping payment vouchers and potentially paying interest if payment isn't made promptly.

VIKAS ESNAPURAM

CA-JOB

163 Points Posted on 18 August 2021

If the recipient of goods doesn't make payment within 180days the ITC availed by the recipient should be reversed This is what the provision says

Only in the case of a Registered person, the action taken by the GST department will not matter because you are not going to get any benefit from that action(The buyer will reverse ITC and nothing more), for unregistered the option of ITC availment does not arise and no concept of reversal aswell.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 18 August 2021

Agree with vikas

Your welcome

Imthias ahamed Kormath

635 Points Posted on 20 August 2021

U may b keep payment vouchers unless u r liable to pay full opt with interest, or if the seller can not block itc timely,or u claimed itc in return but not payment made within 180 days by u.