Section 54 r w r 96A belated realisation - Reg., Goods and Services Tax - GST

[RaamSrinivasan Kalpathi]

We had exported engineering services under LUT and invoiced the client for $25000/- in March 2024. After remitting $15000/- the client expressed inability to settle the balance amount of $10000/-. The same was written off in the books as bad debts and we dutifully remitted GST @18% with appropriate interest u/s. 50 as provided in Rule 96A through DRC-03 challan for the unsettled amount of $10000/- in October 2024. The said client had today wired the balance amount of $10000/- and we have secured the FIRC.

The query is, can I claim refund of the amount remitted through DRC-03 or would it be appropriate to avail credit of the same in GSTR-3B in this month's return? Kindly clarify. Thanks

Posts / Replies

[KALLESHAMURTHY MURTHY]

Dear Sir, 

Please check Circular-26/26/2017-GST dated 29th Dec '17 if beneficial for you subject to re-appropriate the amount written off in the books of accounts.

In FORM GSTR-3B the differential figures for the past month(s) may be reported on a net basis along with the values for the current month in appropriate tables i.e. Table No. 3.1, 3.2, 4 and 5, as the case may be. However, negative figures cannot be shown in the GSTR3B and the balance amount if any can be adjusted in the return(s) of subsequent month(s), and if such adjustment is not feasible, the refund can be claimed.  

Thank you.