I raised debit note as penalty for late delivery charges. Can I deduct from my ITC?

If we will impose some sort of penalty to the supplier, let say a courier company is my service provider I raised a debit note as the penalty for late delivery charges, in that case, Can I deduct from my ITC? or I have to pay tax on it?

Asked on February 16, 2018 in Automobile.
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2 Answer(s)

You can adjust with input tax credit.

Answered on February 16, 2018.
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No, in this case we service receiver act as service provider. And there would be fresh supply as per the GST rule hence we have to discharge liability.

Answered on February 17, 2018.
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