08 September 2021
Goods were supplied to a party in 2018-2019 but payment still not received. Can ITC of party be reversed by gst Department? What is the process for reversal?
09 September 2021
The payment for the supplies to be made within 180 days from the date of Invoice, else GST ITC to be reversed on self assessment basis. If not done, when the department audit is conducted, they would insist the same and levy interest, penalty, etc.
09 September 2021
We purchased Steel Goods from them and they purchases fabrics from us. So will the Accounts we squared off. Will there be any issue from GST side?
09 September 2021
There is advance ruling in the case of Sanghvi motors where such settlement of receivables with payables has not been accepted for the purpose of input tax reversal and held that the reversal will be required. However, in my view the case may be argued.
09 September 2021
Please refer to the section 2(31) of CGST Act, ―consideration‖ in relation to the supply of goods or services or both includes– (a) any payment made or to be made, whether in money or otherwise,...................................
As per the above definition, consideration can be in money or otherwise, so book adjustment is considered as consideration for the supplies.
Also, refer to the Case Name : In re Senco Gold Ltd (GST AAR West Bangal) Appeal Number : Order No. 02/WBAAR/2019-20
The ruling was favoured to applicant that there is no need to reverse ITC for book adjustments and can be considered as payment for the supplies made.
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