Sir,
We received a bill from a service provider on date 31.08.2017 (Rs.250000/- plus igst Rs.45000/-) We claimed this igst during the month of August-2018 and paid them a part payment of 1,15,000/- . Balance Rs.1,80,000/- is pending and we cancelled the contract with them due to not providing business. We raised a debit note on date 01.03.2018 for the balance amount of Rs.1,80,000/- including gst amount Rs.27458/-. Now my question.
1. Shall I adjust this amount with my input credit for the month of March-2018? or pay cash ?
2. Is there any interest payable on the gst amount?
3. Where to show this input credit reversal in GSTR-3B
Please helpout.
You should adjust input reversal in month of March 2018.
As per GST rules, interest at 24% PA is to be paid for wrong utilisation of input tax credit. You have to test whether it was a wrong utilisation of credit or not. You can avail input tax credit only if (section 16 of CGST Act):
(2) Notwithstanding anything contained in this section, no registered person shall be
entitled to the credit of any input tax in respect of any supply of goods or services or both to
him unless,––
(a) he is in possession of a tax invoice or debit note issued by a supplier registered
under this Act, or such other tax paying documents as may be prescribed;
(b) he has received the goods or services or both.
You took input credit without receiving services, so yes you need to pay interest.
You can show input tax reversal in input table, option is given to reverse input tax credit.
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