Scenario: A purchase has been made and a Tax Invoice has been received. However, there has been no payment or only partial paid for the purchase and it is past a period of 6 months from the date of the invoice. Taxable party shall pay back GST claimed for that purchase.
However, if payments are made after this then taxable party could claim back the GST again.
About bad debt relief on purchases
Bad debt relief needs to be done when the purchase is done between a GST registered person and another GST registered person. It needs to be paid back immediately in the taxable period after sixth month from the date of purchase.
In TreezSoft cloud accounting, the process has been simplified through series of automation and integration processes. When you need to issue bad debt relief on a purchase you made, you just have to select the respective records and our system will generate the required documents with all information ready for you to submit.
To issue a Bad Debt Relief for Puchase, navigate through: Tax > Supplier Bad Debt (AP) > Bad Debt Relief (AP)
Then click on 'New' button.
Then follow the following steps:
1. Select Supplier and fill in the rest of information.
2. Tick on supplier invoice(s) that is to be bad debt relief.
3. Save.
You can read more on GST in TreezSoft by visiting these links:
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