We have a invoicing done to a Government organization to a tune of Rs 7cr approx. The GST liability as of 20th May 2018 is 50 Lakhs approximately. We have not received any payment as of now for the said invoice and do not expect to happen in next 20-30 days.
Our suggestion to accept Performa Invoice was rejected by the Govt organization as they want to take the full GST credit. We do not have resources to pay the tax liability as we have exhausted the same to complete the project.
In such situation what are the options we have? Do we have any recourse as we have received any payment?
When GST was implemented, it was a known fact that initially businesses will face difficulty in managing their working capital.
There is no alternative but to pay tax to government on or before due date of filing return.
You will not be able to file return without making payment.
As you asked, if you do not pay on time then late filing fee will be Rs. 50 per day and interest on tax liability will be calculated at 18% PA.
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