Fees not paid by Student - GST

[Jatinder Kumar]

Dear Sir,

We are run a private coaching centre, student paid course fees as per fees payment plan provided to student at a time of admission for example total course fees ₹ 40,000 payable as per following fees payment plan:

01.08.2017 10000

01.09.2017 10000

01.10.2017 10000

01.11.2017 10000

Please guide me, if student paid fees only August, 2017 month, from 20.09.2017 student not coming for classes & not paying fees, we are book GST liability in our books as per fees payment plan. Can i issue credit note for reverse of GST liability which is already book for the month of September, 2017 (Classes provided to student till 20.09.2017) & also invoice not generate from 01.10.2017.

Please guide me.

Thanks & Regards,

Jatinder Kumar

Dear Sir, We are run a private coaching center, student give fees on installment basis for example total course fees ₹ 40,000 including GST 01.07.2017 10000 01.08.2017 10000 01.09.2017 10000 01.10.2017 10000 Please guide me, if student paid fees only July, 2017, from 12.08.2017 student not coming for classes & not paying fees. How can handle situation, because we are book liability of GST in our books as per installment basis. Can i issue Credit Note to reverse gst liablity which is already book for the month of August, 2017. Thanks in advance

Read more at: https://www.caclubindia.com/experts/installment-not-paid-by-student-gst-2557359.asp

[KASTURI SETHI]

When invoice is not issued , liability arises from the due date of payment as per schedule in Prospectus. You will have to pay GST for full month of September. Regarding further guidelines for October onwards, you may contact your jurisdictional Range Officer and give in writing about factual position. You may get relaxation as when no consideration is likely to be received and no service is to be supplied , GST for what and on what grounds.

[Rajagopalan Ranganathan]

Sir,

It is sufficient if you pay gst for the month of August 2017 since you have provided coaching service for the month of August 2017 and collected the fees of ₹ 10,000/-. For the rest of fee schedule you have not collected the fees as per the schedule since the student discontinued the course offered by you. Since you have not provided any service fro, September onwards you are liable to pay any gst. This is my opinion.

[Ganeshan Kalyani]

It can be construed that revenue is received as and when the fees from student is received. Aug 2017 fees is subject to GST. For other month the fees is not received. So GST is not payable on this amount.

[KASTURI SETHI]

You have supplied service up to 18.9.17. So tax liability has become due from the due date mentioned in prospectus. If you have not received consideration for September, 17 you will have to prove this and intimate the department about the factual position. Then you can avoid paying GST for September, 17 ( up to 18.9.17). If you do not intimate about non receipt of consideration to the department you will have to pay GST. So to be on safer side, intimate the department. Also intimate there is no chance for recovery from the students as they have left.

[Himansu Sekhar]

Up to sept. You have to pay gst. Afterwards gst is not leviable. If you have issued invoices from Oct. Issue credit note.

[KASTURI SETHI]

Yes. Himanshu Ji. You are 100 % correct.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Himanshu

[Jatinder Kumar]

Thank you very much all experts,

Please note, September month GST paid by us from our pocket due to fees not received by student but service provided.

Student ledger balance show ₹ 10,000 Dr. in our books of accounts, how can write off, please guide me.

Thanks & Regards,

Jatinder Kumar

AI Summary

GST liability on unpaid instalment fees arises from the due date or time of supply; notify authorities and issue credit notes.
Where fees are payable by instalments under a published schedule, GST liability arises tied to the due date in the prospectus or upon issuance of invoice; service supplied up to the date the student ceased attending attracts GST even if unpaid. Document and notify the tax department of non receipt to avoid liability for later periods; issue credit notes for invoices already issued for unperformed future services; absent invoice issuance, liability follows the prospectus due date.