DACAAI: Paid Bad Debts Related GST Invoices Need to Be Reversed

At Present time, agents are liable to pay 18% GST on the invoices as per the GST law, and due to the epidemic situation caused by COVID 19 a huge spike in the number of the bad debts has been reported. In this matter on Tuesday, June 9, 2020, the Domestic Air Cargo Agents Association of India (DACAAI) said that the paid amount of GST on invoices that have become bad debts should be paid back.

Amit Bajaj President of DACAAI said that “On one side, there is no business for the past two and a half months, and on the other, due to lockdown, we are not getting payments from our clients for services provided to them,”. “As per the present GST law we have already paid 18 percent GST on the invoices raised by us, but cases of bad debts have been increasing. This puts us in double jeopardy and our members are suffering huge losses as”.

Amit Bajaj also said that most of the DACAAI agents are small to medium enterprises and due to the losses occurred due to the current situation they are on the edge of shutting down their business. He further added that at present time airlines are also forcing to pay the charges in advance.

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Bajaj further added that “Our members are facing huge losses and lack of working capital as our payments are not forthcoming and GST is also stuck with the government. DACAAI urges the government of India, GST Council and all concerned that GST paid on the bad debts the same should be re-credited back into our account. Either Government should consider charging GST only after the payments are realized or refund such GST back to us.”