Invoice - GST

[VIGNESH]

sir. my client has sold goods to a party and we have declared the same in GSTR-1, and now he is not paying the bill amount and my client has sued the party .my question

1. Should i pay the GST amount on the bill raised which is disputed?

2. if i reverse the bill by credit note will it be legally tenable?

3. can i raise a credit not for GST Tax amount alone?

[PAWAN KUMAR]

dear sir, as per my view :

it is better to issue credit note and adjust the credit note reducing your gst liability.

[KASTURI SETHI]

I am also of the same view as opined by Sh.Pawan Kumar Ji.

[Shilpi Jain]

Bad debts cannot be a reason for issue of GST credit note as the supply has happened which triggers the levy. The department would dispute this.

However, if the amount gets settled for a lesser amount you could issue CN considering it attracts deficiency

[PAWAN KUMAR]

no department will not issue any notice in this regard.

[Ganeshan Kalyani]

I agree with the views of the expert.

AI Summary

Client Queries GST Liability on Unpaid Invoice: Credit Note Validity Explored Under GSTR-1 Declaration. A client sold goods and declared them in GSTR-1, but the buyer has not paid, leading to a lawsuit. The client inquires whether GST should be paid on the disputed bill, if reversing the bill with a credit note is legally valid, and if a credit note can be issued for only the GST amount. Responses suggest issuing a credit note to reduce GST liability, but caution that bad debts alone do not justify a GST credit note, as the supply triggers the levy. If settled for less, a credit note for deficiency may be considered.