Credit of GST on cancelled invoice

[Murari Agrawal]

Dear experts, we raised invoice for service in FY 2018-19. The recipient refused to pay. Can we issue a credit note now and adjust the GST or is there any other option.

[Ganeshan Kalyani]

There is a condition to raise credit note. For FY 2018-19, the time limit to issue credit note with GST was up to September 2019. Now only financial credit note can be raised.

[Atul Rathod]

Gst credit note cannot be issued now.

[YAGAY and SUN]

Agreed with the views of experts that due to Bar on limitation period, GST Credit Note is not issued now, but you can issue Commercial Credit Note as mentioned in the Circular No. 92

AI Summary

GST credit note limitation bars issuance after prescribed period; only commercial credit note permitted as alternative remedy.
For services invoiced in the prior fiscal year, the period for issuing a GST credit note has expired so a statutory GST credit note cannot now be issued to adjust tax; only a commercial credit note may be issued for commercial settlement, which does not effect statutory GST adjustment.