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Recovery against incorrect GST paid in vendor invoice

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Smriti Anurag

36 Points Posted on 01 September 2022

Hi All,

I have to pay some amount against vendor as charges on foreclosure. These charges were inclusive of GST.

Now I have made the payments Charges with GST. So I have to make an recovery against GST amount.

How should I raise the the credit note to set off incorrect gst amount, Input credit and incorrect expense off.

This is an case of NBFC.

Example:

Total amount to be paid was 183,169/- (inclusive of GST)

Incorrect GST paid : 32,970.00/-

So I have to make an recovery of 32,970/-.How should I raise the credit note.

Please suggest.

Replies (5)

Quick Summary

This discussion addresses how an NBFC employee can recover GST incorrectly paid on a vendor invoice. The vendor was supposed to bear the GST charges, but the invoice included it. The user needs guidance on issuing a credit note to offset the incorrect GST amount, reclaim input tax credit, and correct the expense.