Writing off debtors

This query is : Resolved

CA Sudeep Singh (Querist)
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25 May 2021 If a company sells goods to a party inclusive of GST on credit and after sometime buyer refused to pay money for the goods purchased, how can a company record such entry in books and what are the implication of GST on this transaction.

Thanks in Advance.

Ganeshbabu K

Ganeshbabu K (Expert)
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25 May 2021 Section 15: Value of taxable supply
Section 34(1) of CGST Act, 2017

Reading together the above two sections it can be said that bad debts are not allowed for the reduction in GST liability.