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Writing off of old creditors balance
Is there any GST levy on such write back?
Replies (11)
Quick Summary
Apply for Advance ruling under section 97(e) of the CGST act 2017 .
If ITC was availed then you must pay the GST atleast to the extent of ITC availed
Itc availment conditions:
1. gst paid or not
1. gst paid or not
If it's available in GSTR-2B ITC can be claimed irrespective of payment
There is no levy of Creditor's balance Written Back. But you have to reverse the ITC availed.
There is no levy of Creditor's balance Written Back. But you have to reverse the ITC availed.
As per Rule 37(1) , if the credit has been availed on inward supply & payment for the same is not made within 180 days , the ITC in proportion to be reversed.
So in reference to above provision , you cannot write off the balance, need to reverse the ITC also.
So in reference to above provision , you cannot write off the balance, need to reverse the ITC also.
Sec 7 does not explain such written back as sale or supply , SEC 16(2) of cgst act implies payment of input as outward liability.
ITC if availed should be paid at the time of writing back creditors
The point is not availing itc but it can be availed only if it is paid.
One must apply brain while pointing out others..Check above replies once ..
If a person availed ITC on creditors at the time of purchase then it should be paid back to government of the invoice is cancelled or not recoverable either through reversal of ITC or
If a person availed ITC on creditors at the time of purchase then it should be paid back to government of the invoice is cancelled or not recoverable either through reversal of ITC or
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