img

GST Update COVID

  • Admin
  • 23 Apr, 2020

Adjust or refund of GST paid to authorities on cancellation of Service or Goods Contract

This update intends to brief readers on treatment of GST paid by service provider or supplier of goods if the service contract has been cancelled or the goods have been returned by consignee. Under present lockdown situation, these situations are likely to rise and accordingly authorities have uniformed the legal provisions of GST laws.

 

Advance received for supply of service + Invoice issued before completion of service


Under the above situation when the service provider has paid GST to authorities and later service contract is cancelled, he has the following two options:

  • Issue credit note and adjust the already paid GST against the other GST output liability 
  • In case service provider do not have any GST liability for adjustment, refund can be claimed from authorities.

Advance received + receipt voucher issued before completion of service

  • Under the above situation when the service provider has paid GST to authorities and later service contract is cancelled, he needs to issue a refund voucher and file the application for refund under the head "excess payment of taxes".

 

Goods supplied and returned by customer
 

Under the above situation when the supplier of goods supplied the goods but got returned and has paid GST to authorities, supplier of goods has the following two options: 

  • Issue credit note on customer and adjust the already paid GST against the other GST output liability
  • In case supplier of goods do not have any GST liability for adjustment, refund can be claimed from authorities.

Contact us:

 

For any assistance or clarification, please write to us on legal@corpcode.in

www.corpcode.co.in

20 April 2020 

 

Regulatory Update: India reviewed its FDI policy for neighbouring Countries

 

 

https://s3.amazonaws.com/gr-share-us/email-marketing/message-templates/Sd/a4cb477d-98ec-4f04-9519-923f5bebf0d2.png

 

 

 

With a view to provide shield against opportunistic takeovers or acquisition of Indian Companies due to pandemic situation in India, FDI policy of India has been reviewed.

 

All investments from countries which shares border with India would have to seek investment approval from Government of India. Earlier, mostly investments were under automatic route wherein there was no government intervention.

 

Further, transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in beneficial ownership falling within this restriction will require government approval

 

Source: Press Note 3 of 2020 issued by Department of Promotion of Industry and Internal Trade, Ministry of Commerce issued on 17th April 2020

 

Best Regards,

Corpcode Team

Share Your Thoughts