GST invoice and payment

say we raise a gst invoice of 4 lakh on 1st dec 2017
gst will be 18% i.e. rs 72000
case 1 -now say payment is received on 5 th feb - isn't it wrong that i had to pay 72000 in january when i actually received any payment in februrary.
case 2- now say we don't receive payment till 31st march 2018 - how will i account for the same

case 3 - say we dont recieve payment even untill march 2019 

this question is based on the fact that we actually have few 2 years bills which are still unpaid.
but the issue now is that i have to pay gst regardless of payment.
Asked 9 days ago in GST from Ghaziabad, Uttar Pradesh
Hello,

Yes, you are very well correct that you have to pay GST at the time of issue of invoice no matter you receive the payment later on or may not receive the payment at all.

But the law is such, according to the law the government will recover its taxes when its due, its your fault if you cannot/ do not recover your dues from the party concerned why should the government suffer from it. The law was the same even at the time of service tax/ vat, it is nothing new. (please note this is the government's view and hence the law is framed accordingly)

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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tracking of every bill is not possible but if a person having turnover over 2 cr then GST Audit is mandatory ,thus auditor or on inspection these things can be traced ,
you are right as such rules are very strict but we have to pay taxes on time to avoid interest and penalty for safer side if possible raise invoices in the begging of every month instead of ending of the month by doing this you can temporary deffer your tax liabilities for around 50 days that can might be help you in running your business. 
Lalit Bansal
CA, Delhi
418 Answers
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Hello,

Totally agree on the Service tax invoice points but we can't help it rules are rules.

For the reversal of Input tax credit part as of now there is no checking mechanism but it is expected that they will develop a mechanism where the seller will have to declare the name of the buyers who have not made payment to the vendors against which the government may first give the buyers an opportunity of  being heard and prove that rightful payment was made, in case they fail to do so, their credit might be reversed.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
1837 Answers
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You will have to pay GST in the month of December itself whether you receive payment or not.

Please feel free to call revert in case you need more clarity

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
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Hi

GST is to be paid if invoice is issued earlier. There are rules for invoicing too. So the law had become rigid and needs to be followed. 

Yes, the payment system shall also become strong. Why should one get the credit of taxes if he has not paid for that at all?
Lakshita Bhandari
CA, Mumbai
587 Answers
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Hi,

Enter into agreement with the banks to release payment within a time frame from which you have raised them an invoice.

Trust this clarifies.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
656 Answers
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