Circular no. 137072020-GST dated 13th April 2020

Type of Supply

First Event

Document issued at the time of first event

Cancellation of service or goods return

Treatment under GST

Service

Advance received

Tax invoice issued before supply of service

Contract cancelled before supply of service

a)    Credit note u/s 34 is to be issued for reduction in liability and the same shall be declared in monthly return.

b)    Where there is no output liability against which a credit note can be adjusted, file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.

Service

Advance received

Receipt voucher

Contract cancelled before supply of service

a)    Issue refund voucher u/s 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules and apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category “Refund of excess payment of tax”.

Goods

Goods supplied

Tax invoice

Goods returned

a)    Credit note u/s 34 is to be issued for reduction in liability and the same shall be declared in monthly return.

b)    Where there is no output liability against which a credit note can be adjusted, file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.