TaxTMI 
TaxTMI 
GST reversal u/s 37 for creditors
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....ST reversal u/s 37 for creditors<br> Query (Issue) Started By: - RAVI MUNDRA Dated:- 7-7-2025 Last Reply Date:- 7-7-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>i have both sales and purchase from one party. i have maintained 2 ledgers for Purchase and Sales. We always have Receivalbe from this party. Even though Se maintain a net "Debit balance" (meaning more receivables th....
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....an payables) with this party overall, the GST departments query focuses on specific credit balances (your payables) that have exceeded the 180-day limit. Reply By Sadanand Bulbule: The Reply: What exactly is the query? Reply By RAVI MUNDRA: The Reply: This refers to your query regarding credit balances (payables) exceeding 180 days with our party, * Nature of Transactions: We maintain both....
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.... sales and purchase transactions with Party. For accurate accounting and statutory compliance, we operate two separate ledgers for recording our purchase payables and sales receivables from this party. * Overall Net Position: While there may be instances of credit balances (payables) in our purchase ledger that have exceeded the 180-day limit, it is crucial to note that our overall net balance....
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.... with Party consistently remains a debit balance. This signifies that the total receivables from (from our sales ledger) are always higher than our total payables to them (from our purchase ledger). Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: This is a practical problem facing companies which purchase goods or services and also supplies goods or services to the same "person" (Perso....
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....n as defined in S.2(84)). Nonetheless, there is a solution. While providing the audited accounts please ensure that the supply invoices are set off against the trade receivable balances such that no credit outstanding is shown to be over 180 days. Department Circular is available allowing such netting off. Please be rest assured that department is never going to accept your....
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.... argument that ultimately after set off there will be a debit balance only in the books. Relief may be possible at FAA or with the Tribunal only. Thanks Reply By KASTURI SETHI: The Reply: Books of accounts are a statutory records. In my view, you may get fair justice at the first stage i.e. at the hands of Original Adjudicating Authority. <br> Discussion Forum - Knowledge Sharin....
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