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 andSUN]

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

Issuance of GST Credit Note for FY 2018-19 Expired; Financial Credit Note Possible per Circular No. 92. A query was raised regarding the issuance of a credit note for a service invoice from the fiscal year 2018-19, where the recipient refused payment. Experts responded that the time limit for issuing a GST credit note for that fiscal year expired in September 2019. Consequently, a GST credit note cannot be issued now. However, it is possible to issue a financial or commercial credit note as per Circular No. 92, despite the limitation period for GST credit notes.