Timing for filing Bills

[Sangeetha D]

If a buyer is doubtful about paying the bill amount, can I delay filing their invoice in GST until they make the payment?

I have supplied goods/services to a buyer and raised an invoice, but there is uncertainty about whether they will pay. Can I wait to file this invoice in my GSTR-1 until the buyer makes the payment?

1. Is it legally permissible to delay filing the invoice in GST until payment is received?

2. What are the consequences of not filing the invoice within the prescribed time limit (30 days from the date of supply)?

3. If I file the invoice and pay GST but the buyer defaults, can I claim a refund of the GST paid?

4. What is the best way to handle this situation to remain GST-compliant while managing the risk of non-payment?

[Sadanand Bulbule]

Non compliance of the provisions of GST Act by the supplier to twist the arms of the recipient in case of likely delayed payments is not permitted nor it is in good taste. You are the loser. In terms of Section 16[2]d], if the recipient fails to pay the consideration within 180 days from the date of tax invoice,he is not entitled to claim ITC and he would face the consequences. Be compliant to help yourself.

[Shilpi Jain]

So are you stating that you will not generate the e-invoice also?

If you do not disclose in GSTR-1 then you are effectively delaying the payment of taxed which would lead to interest on delayed payment of tax @ 18% p.a.

If you are ok for this you can proceed.

[Shilpi Jain]

If you declare in your returns and buyer defaults - refund cannot be applied for this reason.

managing risk of non-payment requires suitable clauses of dispute settlement, etc. in your agreement itself. Cannot be effectively managed with the GST aspects.

[KASTURI SETHI]

In the absence of ''consideration", the transaction will not constitute a supply, it being out of the scope of supply as laid down in Section 7(1) (a) of CGST Act except the activities covered in Schedule-I.

[Shilpi Jain]

If the arrangement with the 3rd party initially itself is that there is no consideration then it will not be liable to GST.

Though, if there is a consideration and the recipient defaults the payment, then no refund can be claimed nor can it be said that since no consideration not a supply. 

AI Summary

GST invoice filing compliance: delaying disclosure until payment risks interest, denial of input tax credit, and no refund remedy.
Suppliers must comply with GST invoicing and return disclosure; delaying invoice filing to await payment is not an acceptable method of managing non payment. Late disclosure generates interest liability for delayed tax, does not entitle the supplier to a refund if the buyer defaults, and does not alter the recipient's entitlement to input tax credit rules under Section 16(2)(d). Transactions without consideration are out of scope of supply under Section 7(1)(a) except as covered by Schedule I. Commercial risk should be managed by contractual clauses rather than by postponing GST filings.