Gst on payments not recd.

This query is : Open

ISHITA (Querist)
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01 June 2017 Dear Sir,

I am a professional & bank valuer. Most of the times, banks/branches ask us to carry out a certain valuation of property. We carry out the assignment & submit our report & bill to concerned bank/branch.

1. It sometimes takes 3-6 months for the payments to be received. In such cases, how do we pay the GST for payments yet to be received?

2. In few cases, we never receive the payments at all after passage of certain period, as the bank/branch says, the loan account went bad, or the loan case could not be processed due to some reason, etc. etc. For such cases, where we do not receive any payments for services rendered, why & how do we pay the GST at all?

3. We also render engineering consultancy services. Some times when we raise bill after completing certain quantum of work, the payments are recd. over a span of 4-8 months. How do we pay GST in such cases? Sometimes the client asks us to settle for a lesser amount as per the bill raised. In such cases, how do we pay the GST?

Please clarify all above doubts. I believe that for professionals, the GST should be payable on receipt amount instead of billed amount, as was being done previously with service tax.

CA Parveen Kumar

CA Parveen Kumar (Expert)
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01 June 2017 1. In GST ever registered person have to issue an invoice within 30 days from completion of service and on the issuance of an invoice for the supply of service, GST needs to be paid by 20th of next month irrespective of the payment received from service receiver. In GST there is no concept of tax payment on receipt basis except on advance receipt. If the receiver of servicer fails to pay an amount within 180 days, should have to reverse the credit claimed.

2. In that case to claim the benefit of GST paid at the time of invoice. The supplier of service have to issue a Credit Note against such invoice and enter the same in return. Further, the credit note should be accepted by the receiver of service in its return and reduce its input credit.

3. In that situation, at the time of issuance of invoice supplier of service have to pay full GST. Further, if any reduction in bill amount a proper credit note should be issued as discussed in point number 2 to claim the benefit of excess GST paid.

Guest

Guest (Expert)

01 June 2017 In GST , tax is payable at the earliest of the following event: a) date of payment b) date of issue invoice c) date of completion of services d) receipt of such service as shown by recipient in his book. So you have to pay GST on happening of any of the above mentioned event.

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