Treatment in case of Cancellation of Services and return of Goods
Treatment in case of Cancellation of Services and return of Goods Circular No. 137/07/2020 – GST dated 13.04.2020 – Treatment in case of cancellation of service / return of goods Nature of Supply Original Event Document issued Subsequent Event Treatment suggested in Circular Services Advance Received Tax Invoice Contract cancelled before Supply of Service a) Credit note to be issued u/s 34 for reduction of tax liability (upto September of next financial year) b) Adjust tax against output tax and where there is no output tax, refund can be claimed under ‘Excess payment of tax’ Services Advance Received Receipt Voucher Contract cancelled before Supply of Service a) Refund voucher to be issued b) Adjust tax against output tax and where there is no output tax, refund can be claimed under ‘Excess payment of tax’ Goods Supply of Goods Tax Invoice Goods Returned a) Credit note to be issued u/s 34