Business closed by sundry creditors

This query is : Resolved

Amandeep Singh (Querist)
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30 July 2019 Respected Sir,
One of our supplier has closed his business due to his personal problem. They have yet not file the return last month we have reverse the ITC. But it's pending in books of account. His payment is due with us. Now please suggest how to reverse the ITC in books.

Thank you

Gokul Sharma

Gokul Sharma (Expert)
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30 July 2019 issue debit note to supplier and pay the gst to dept.

Amandeep Singh

Amandeep Singh (Querist)
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31 July 2019 Sir
He Closed his business not responding to us.
Can We Dr. his account only Tax value or Credit IGST Input ( Post Journal Vocher)
because his some payment due with us.

Or any solution please adivse

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Gokul Sharma

Gokul Sharma (Expert)
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31 July 2019 if you reversed itc on it then how govt will recover the gst on it. debit supplier a/c and pay to dept , and claim itc

Gokul Sharma

Gokul Sharma (Expert)
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31 July 2019 All ITC reversals which increase output tax liability are required to be paid.

Amandeep Singh

Amandeep Singh (Querist)
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31 July 2019 Thank you Very much Sir,