URP demanding money back, can I deny GST component?

312 views 2 replies

Dear Sir or Madam,

We are into AMC of a domestic appliance, an URP customer who signed an AMC with us in Dec 2022 wants to cancel the contract & demanding refund for 9 months.

We are okay with it & have agreed to refund on pro-rata basis.

However, I have said to the customer that GST won't be refunded as we have already deposited the same, but the customer is demanding refund including GST.

What should I do?

Replies (2)
You can raise a credit note with GST on current and adjust with sales of current month while GSTR-1 and GSTR-3B
Yes can issue credit as prescribed in Section 34 & can adjust tax liability.
but if you don't have output liability against which credit note can be adjusted then can claim refund under "Excess payment of tax if any" through form RFD-01 as prescribed in Circular 137/2020 GST


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