C Form Recovery

[Kaustubh Karandikar]

For the ‘C Forms’ not received from the customers pertaining to the supplies made prior to GST era, Debit Note is issued in today’ date to the customer for the liability incurred + interest. Is GST required to be paid on it to the govt.?

[YAGAY andSUN]

This matter is bit daisy as any liquidity damage or refraining to do or not any act attracts GST.

[KASTURI SETHI]

I support the views of M/s. Yagay and Sun, Sirs.

AI Summary

GST on consideration: debit notes recovering pre GST liabilities for missing C Forms attract tax as taxable consideration. Whether GST is payable where a supplier issues a debit note after GST implementation to recover a pre-GST liability because customers did not furnish C Forms; forum respondents state that compensation for liquidity loss or refraining from acts constitutes taxable consideration, so recovery of liability plus interest via a debit note attracts GST.