Issuance of credit note of inactive supplier
Hi! I hope you can enlighten me on our current issue. We have a supplier whose GST registration got cancelled in October 2015 but still continued to issue tax invoices with GST. We had received several tax invoices in December 2016 for services performed in December 2016. We had claimed the related input GST in December 2016 GST return not knowing that their GST registration is already inactive. It’s just recently that we’ve known their status by checking in the GST Lookup website. With respect to the deregistration that has happened back in 2015, would it still be feasible for them to issue us a Credit Note to cancel out the GST previously charged to us? Would there be any implications that may impact our returns and also any possibilities that may lead us into unfavorable situation with Customs? Thank you in advance for your response.
Once a GST registered person has deregistration himself, he is not allow to charge GST. In your case, you have already claim input tax credit on those non-GST registered Tax Invoice. You need to account for output tax by doing adjustment (AJS). For a better and clearer view of how to go about this as well as to avoid being penalize for wrong doing later, I would suggest you consult the GST Officer at the Customs near your place.