TaxTMI 
TaxTMI 
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.
Written Back of Liabilities as on more the 3 years ( Material and Services)
01 Mar 2019 
9 Replies 
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Input tax credit reversal may be required where longstanding creditor liabilities are written back, affecting GST and pre GST taxes.
Write backs of long outstanding creditor balances can trigger input tax credit reversal where the supplier remains unpaid; such reversals affect GST and, by analogy, pre GST Excise and Service Tax positions, and may attract interest or additions to output tax liability. Determination depends on the prior accounting treatment of the write off and whether input tax credit had been availed, with possible re availment if payment is later made. (AI Summary)
Write backs of long outstanding creditor balances can trigger input tax credit reversal where the supplier remains unpaid; such reversals affect GST and, by analogy, pre GST Excise and Service Tax positions, and may attract interest or additions to output tax liability. Determination depends on the prior accounting treatment of the write off and whether input tax credit had been availed, with possible re availment if payment is later made. (AI Summary)