GST payable on bad debts

[MAHENDRABHAI DESAI]

Dear Sir,

1) Whether it is mandatory to pay GST on bad debts as per GST Law ?

2) Whether NCLT will pass order to pay us GST paid on Bad debts on submission of challan ?

3) Tax Invoice and bad debts w/off in the same financial year implication on GST payable ?

Regards,

AI Summary

GST on bad debts: adjustment allowed only via credit or debit note; refund limited where tax was passed on.
Adjustment of GST already paid is allowed only by issuance of a credit or debit note; no reduction is permitted where the incidence of tax has been passed on to another person. GST paid on commercial bad debts cannot be adjusted merely because recovery failed, except where the debt arises from deficiency in supply, tax charged exceeding actual liability, or goods returned, subject to prescribed conditions for refund or adjustment. Practically, tax is payable on invoice issue and tax must be written off with the invoice when a debt is written off.