Reverse gst on non-payment of invoice

RCM 191 views 1 replies

I had made Invoice in August for a client for a service and also paid GST while filing GSTR 3B of August.

But client company is shutting down now and even after 3 months client did not make payment and now refusing to pay.

So my question is

When filing GSTR1 for August - can I simply NOT add the bill? (but there will be break in serial number - is that allowed?)

I would prefer this option as then I do not have to do anything else.

OR

I must first show the bill in August GSTR1 and then show it as cancelled / debit note in October GSTR 1

With 2nd option - I do not know when will due date of filing GSTR 1 come which means I wont get GST back for atleast 3-4 months.

And then I also have risk of client rejecting debit note and adding complications to issue.

 

My main problem is that I will have recover about 8000Rs of tax which he must have claimed in his GSTR 3B of august.

So effectively I will not only get payment of services I gave but client will also siphon off my additional 8000Rs by claiming it as ITC.

What are dispute provisions in GST for such issues?

Replies (1)

Can anyone who has faced this issue or know about it reply?


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