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GST Return Query

Rounak Varshney (Business) (276 Points)

10 July 2017

Suppose I made a sale to B in July month but I didn't receive payment from B and In Gstr1 of july I did not shown the detail of invoice of sale to B, although I deposit the tax from my pocket.
Q1.whether Mr.B will be able to claim ITC as I am not mentioning the detail of invoice??
Q2. whether I will show the detail of invoice to sale to B after receiving payment in subsequent month return??

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6 Replies

Kunal Pansari (Accountant) (1037 Points)
Replied 10 July 2017

First of all it should be kept in mind that one should provide the details of all the sales in GSTR-1, irrespective of the payment.

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Kunal Pansari (Accountant) (1037 Points)
Replied 10 July 2017

Now, going to your situation you said that you did not provide any details of sale to B in your return. But B will show his purchase from you in his GSTR-2. After which you will get a notification to add your sale as per the purchase shown by B by 17th of the month. Then, if you add your sale, B gets ITC. If you don't add your sale, B don't get ITC

Anupam Goswami (342 Points)
Replied 10 July 2017

B will get the input credit for this month but you should be settle with in month other wise both of u will get notice

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sushit shishul (338 Points)
Replied 10 July 2017

If ITC Claimed by Mr. B do not pay the Consideration along with the tax within 180 days of the issue of the bill, ITC will be added to Output Tax Liability of the Mr.B on his common Portal of Gstn.

2) He can take ITC again on the payment of the Tax.

Rounak Varshney (Business) (276 Points)
Replied 10 July 2017

yes, I know that both of them will get a intimation from deptt, here my objective is to receive payment from B on time ,becoz generally we find that purchaser will book the ITC on receiving the invoice but he didn't make payment to supplier on time, supplier has to bear the tax on his own pocket whereas the buyer enjoys the ITC.

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Kunal Pansari (Accountant) (1037 Points)
Replied 10 July 2017

There is a new provision in GST that if a buyer don't pay the seller the bill amount within 180 days, ITC claimed by him will be converted to his tax liability which should be paid along with the interest @ 18%