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Urgent...please help

shalini (CA) (525 Points)

19 March 2018

I deposited GST on advance payment received from client in December,2017. Now that contract got cancelled and I have returned the money to the client in February 2018. How do I claim refund of GST paid on advance payment? I am filing GSTR- 3B for February now.Can I offset this excess paid GST with February month GST outward liability?

Please guide.

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7 Replies

abhilash (student) (411 Points)
Replied 19 March 2018

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 19 March 2018

as per section 31

Issue the refund voucher against Ur receipt voucher, & reverse the GST

extract from section 31 Cgst act
e] where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment;

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Divakar (Student CA Final ) (11857 Points)
Replied 19 March 2018

Yes u can offset mam

shalini (CA) (525 Points)
Replied 19 March 2018

Thanks all for the prompt reply.

I have already issued refund voucher to the client. I didn't raise any tax invoice at the time of receipt of advance payment. Can I issue credit note now?My query is that how can I claim refund of GST which I have deposited to the governement?

I didn't find any adjustment facility in GSTR-3B so should I pay whole outward GST liability for February in GSTR-3B and apply for refund separately or I can offset it?

Divakar (Student CA Final ) (11857 Points)
Replied 19 March 2018

Hlw mam.... Set off that amount in ur gstr3b for that amount which u already shown as taxable turnover.... And u should have add ur refund voucher in GSTR1.... No need to issue credit note as u hv not issued any tax invoice..... In first gstr1 u show as advance receipt and now show refund voucher..... Ur itc automatically increased for that.... Rather than go for refund adjust it in ur gstr3b... Hope u got my point