16 November 2020
GST had been paid on long term lease of land on RCM basis. Later the deal got cancelled. 75% of lease premium paid at the time of lease agreement has been refunded back. The Lessor has filed a credit note in GST return which is showing under Credit note section in GSTR 3B and in Reverse charge- Credit Notes in GSTR 2B. If I reverse the amount of credit note at the time filing GSTR 3B, the balance in the Electronic Credit Ledger will get reduced by the credit note amount. What will happen to this amount, will it be refunded or transferred to the electronic cash ledger?
16 November 2020
Yes i have taken ITC credit on the lease premium. Its showing in my credit ledger. However, i have not used it as there is no other activity in the company. The Lessor has filed a credit note which is showing the amount they have refunded and the IGST on it.
16 November 2020
I have not received the gst along with the refund. If I book the credit note it will reduce the ITC credit balance. How will i get the refund of the gst i have paid in that case?
01 December 2020
I have paid GST under RCM for supply received. In GSTR 3B i have claimed the amount paid under RCM as input and it is showing in my credit ledger. Now, the supplier has cancelled the deal and also uploaded a credit note which is showing in my GSTR 2A. If I reverse the amount of this credit note in my current GSTR 3B, the input tax credit ledger balance will reduce by the amount of credit note. How will I get the refund of this amount?
01 December 2020
ok, it is clear now. In this case you should not reverse the ITC on booking the credit note because the credit note will not have any GST amount. You can file refund claim under section 54 as excess payment of tax.
01 December 2020
The credit note does have the GST amount. The basic amount as well as the GST amount is showing in GSTR 2A. In the system generated GSTR-2B also the gst amount is showing in the reversal section. My issue is once this credit amount is reversed and the balance of ITC ledger is reduced, how will i get the refund?
01 December 2020
That is wrong credit note. When the supplier did'nt charge GST on the original supply then where is the question of he including GST in the credit note issued by him. Please ask the supplier to correct the credit note.
01 December 2020
The supplier is Government of India in this case. The recipient of service is a private enterprise. The private enterprise paid GST on RCM on the service received from Government of India. Getting the government to change their credit note is a herculean task and I also believe they could not have made this mistake.
CAclubindia
