New Delhi: With aviation and hospitality sectors seeing mass cancellation of bookings following Covid-19 outbreak, the CBIC has allowed businesses to claim refund of GST in cases where invoice was generated but was subsequently cancelled.
The Central Board of Indirect Taxes and Customs (CBIC) issued a set of clarifications in view of certain challenges being faced by taxpayers in adhering to the compliance requirements post Covid-19.
Clarifying on the issue of advance received by a supplier and invoice generated for a service contract which got cancelled, the CBIC said "in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under Excess payment of tax, if any through Form GST RFD-01".
Similarly, where goods have been supplied for which tax invoice have been generated, but were subsequently returned by the recipient, the CBIC said in cases where there is no output liability against which a credit note can be adjusted, supplier of goods can file a refund claim through Form GST RFD-01.
The CBIC clarification comes at a time when sectors like aviation and hospitality are grappling with mass cancellation of bookings in view of the lockdown due to the pandemic.