Advisories

Important announcement related to GST and cancellation / amendment of invoices

26 September 2019

As per the Goods and Services Tax Legislation (‘GST Laws’) implemented on 1st July, 2017, invoices issued in FY 2017-18 (1st July, 2017 to 31st March, 2018) can no longer be rectified post the GOI (Government of India) proposed deadline was of 31st March, 2019.

Any amendment / cancellation for invoices issued in FY 2018-19 can be made only up to 30th September 2019. For us to comply with the above provision, we request that all disputes pertaining to invoices for FY 2018-19 be brought to our notice and addressed by 10th September 2019.

In addition, we would also like to inform you that if you approach Maersk for settling invoices for FY 2017-18 or FY 2018-19 after 26th September 2019, we expect payment in full. Further for FY 2017-18 or FY 2018-19 invoices, GST amount cannot be settled after 26 September 2019, GST amount has to be paid to Maersk for such invoices, since Maersk has already deposited such GST amount with GOI.

Therefore, post 26 September 2019, in case we negotiate a settlement amount less than what has been already invoiced by Maersk, then is such a case you will have to pay us full GST amount as displayed on the invoice already issued by Maersk, that means there shall be no settlement of GST amount payable to Maersk.

For Example:

Particulars Maersk Original Invoice dated 1 January 2019 Settlement ONLY of Taxable Value post 26 September 2019
Particulars
Taxable Value
Maersk Original Invoice dated 1 January 2019
100
Settlement ONLY of Taxable Value post 26 September 2019
70
Particulars
GST @18%
Maersk Original Invoice dated 1 January 2019
18
Settlement ONLY of Taxable Value post 26 September 2019
18
Particulars
Total Invoice Value
Maersk Original Invoice dated 1 January 2019
118
Settlement ONLY of Taxable Value post 26 September 2019
88
Particulars
Amount Payable by YOU
Maersk Original Invoice dated 1 January 2019
118
Settlement ONLY of Taxable Value post 26 September 2019
88

If you have any query regarding this advisory, please feel free to contact your Maersk representative.

Thanks for your co-operation as always.

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