URP demanding money back, can I deny GST component?

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MD
49 Points Posted on 21 March 2023

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?

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On 21 March 2023 at 11:34 Report
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Quick Summary
A business providing domestic appliance AMC is facing a customer demanding a full refund, including GST, for a cancelled contract. The business has agreed to a pro-rata refund but is unsure about refunding the GST component, which has already been deposited. Advice suggests issuing a credit note with GST and adjusting it against current sales or claiming a refund via RFD-01 if no output liability exists.

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banglore
1496 Points Posted on 21 March 2023
You can raise a credit note with GST on current and adjust with sales of current month while GSTR-1 and GSTR-3B
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On 21 March 2023 at 12:57
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GST Practitioner
55067 Points Posted on 24 March 2023
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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On 24 March 2023 at 01:25

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