For those unpaid invoices more than 6 months, we are paying back the input tax claimed as output tax now. Do we require to state the debt inclusive tax in GST-03? If yes, should it be under No. 17 Total Value of Bad Debt Relief Inclusive of Tax or No. 18 Total Value of Bad Debt Recovered Inclusive Tax? Thanks
Adjustment by customer
150. When a taxable person fails to pay his supplier the consideration or any part
thereof for the supply of any goods or services made by his supplier to him at the end
of the period of six (6) months following the date of invoice issued, he shall deem the
amount of the relevant input tax he first credited or refunded to him [5b-input tax](the input tax that
corresponds to the payment that has not been made), as his output tax and make an
adjustment in his return for the immediate taxable period after the expiry of the six (6)
months by increasing his output tax [6b-output tax]. source : General Guide (revised as at 12 July 2016)
if you still not paying your supplier after 6 month you need to make an adjustment in the column 6b (output tax) no need to declare to under column 17 or 18. These column are meant for supplier only.
Adjustment by Supplier
145. The supplier who is a registered person can claim the bad debt relief as his
input tax in the return [6b-input tax] for the taxable period in which the bad debts are given relief.
The amount of bad debt relief must also be declared in the appropriate box in the
return [17 -Total value of Bad Debt Relief]for the immediate taxable period after the expiry of six (6) months.