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Writing off of old creditors balance

Raj Toshniwal (8 Points)

28 April 2022

Is there any GST levy on such write back?

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11 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14927 Points)
Replied 28 April 2022

Apply for Advance ruling under section 97(e) of the CGST act 2017 .

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 29 April 2022

If ITC was availed then you must pay the GST atleast to the extent of ITC availed

1 Like

sabyasachi mukherjee (27870 Points)
Replied 29 April 2022

Itc availment conditions:
1. gst paid or not

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 29 April 2022

If it's available in GSTR-2B ITC can be claimed irrespective of payment

1 Like

Rajendra Prasad (Employee Private) (1913 Points)
Replied 29 April 2022

There is no levy of Creditor's balance Written Back. But you have to reverse the ITC availed.

Rajendra Prasad (Employee Private) (1913 Points)
Replied 29 April 2022

There is no levy of Creditor's balance Written Back. But you have to reverse the ITC availed.

1 Like

Pankaj Rawat (GST Practitioner) (55062 Points)
Replied 29 April 2022

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.

sabyasachi mukherjee (27870 Points)
Replied 29 April 2022

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.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 29 April 2022

ITC if availed should be paid at the time of writing back creditors

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sabyasachi mukherjee (27870 Points)
Replied 30 April 2022

The point is not availing itc but it can be availed only if it is paid.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 30 April 2022

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

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