No Refund of GST if debt is not recoverable

By | June 5, 2017
(Last Updated On: June 5, 2017)

Q  In case of Supply of Goods and Services, if the goods have been sold and service has been provided and the Tax invoice has been raised by supplier, but the payment is delayed for a long period of time by the Customer, will the supplier be obligated to pay GST even though the payment is not received. This can affect the liquidity of the Supplier. Also In case of Irrecoverable claims will the supplier get refund of GST.

Answer As per CGST Act 2017 , supplier has to pay GST even if recipient does not make payment for Invoice.

There is no provision of refund of GST if debt is not recoverable

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