Written Back of Liabilities as on more the 3 years ( Material and Services)

[Prem Choudhary]

Dear expert

please advice for consequences in Service tax, Excise and GST , if we are written back the Credit balance of Creditors ageing more then 3 years.

AI Summary

Discussing Tax Impact of Writing Back Liabilities and Input Tax Credit Reversal under Section 16(2)(d) CGST Act A forum discussion addressed the implications of writing back liabilities older than three years on Service Tax, Excise, and GST. A participant sought advice on the tax consequences of writing back creditor balances. An expert clarified that writing back involves reversing previously written-off liabilities, affecting taxes. Another contributor noted that input tax credit taken on unpaid purchases must be reversed, referencing Section 16(2)(d) of the CGST Act. It was agreed that this principle applies to both GST and pre-GST periods, including Excise and Service Tax. The discussion concluded with mutual appreciation among participants for their expertise.