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

Treatment in case of cancellation of services
Nature of
Supply
Original
Event
Document
issued
Subsequent
Event
Treatment suggested
in Circular
ServicesAdvance ReceivedTax InvoiceContract 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 for reduction of tax liability (upto September)
b) Adjust tax against output tax and where there is no output tax, refund can be claimed under ‘Excess payment of tax’

Other Issues

IssueClarification
Due Date for filing of Letter of Undertaking (LuT) for the Financial Year 2020-21 (a) In terms of Notification No. 35/2020-Central Tax, time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020 and
(b) Till that time, taxpayer can quote Old LuT number of the year 2019-20 to make the supply without payment of tax under LuT for the year 2020-21 upto 30.06.2020.
Due Date for filing of refund claim u/s. 54 (1) of CGST Act, 2017 (a) Where the due date of filing refund claim was expiring between 20th March 2020 to 29th June 2020, the deadline of filing the same has been extended to 30.06.2020.
Date of Deposit of TDS u/s. 51 of CGST Act, 2017 (a) Due date for furnishing of GSTR-7 and deposit of TDS for the period from 20.03.2020 to 29.06.2020 is extended to 30.06.2020 and there shall be no interest payable, if tax deducted is deposited by 30.06.2020.

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