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Former Member

GST component as a Spl. gl indicator

One of my client requested us to create a special GL indicator in vendor account to park GST component at the time of invoice booking so that GST can paid once the numbers reflect in the returns. To elaborate with an example:

A vendor raises invoice on 01/02/2018 and company accounts it on 01/02/2018 and make the payment to vendor ( Service Value+GST). Based on this company avails the input in its GSTR3B returns. However, the vendor fails to delacre it in his GSTR-1 return or fails file the return for said invoice. The out come is the department will reverse the input taken by company and raises a demand on company to pay the value of input wrongly claimed along with interest and late payment fees. Hence, to avoid such scenario, company want to post the GST element in the invoice to a Special GL indicator in Vendor Account at the time of booking invoice, which will be paid once the entry reflect in GSTR2A. This is similar to TDS receivable concept in A/R. Please advise at earliest.

Thanks in advance.

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