Double whammy for service companies: Required to pay GST on defaults, bad debts

Mumbai: As  customer defaults  mount due to the  Covid-19 crisis , Indian  services companies  have been dealt a twin blow: Of unpaid bills, and Goods and Services Tax ( GST ) liabilities on those incidents on non-payment.  Under the current GST framework, there is no provision to allow adjustments of GST paid on supplies for which recoveries are not made. Companies h…