(1) This section has effect if:
(a) you are the recipient of a taxable supply for which the GST is payable by you because of this Division; and
(b) the whole or part of the consideration for the supply has not been received by the supplier; and
(c) the supplier writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.
(2) Section 21 - 5 of the GST Act does not apply to the taxable supply.
(3) Instead, you have a decreasing adjustment equal to 10% of the amount written off, or 10% of the amount that has been overdue for 12 months or more, as the case requires. However, you cannot have an adjustment under this section if you account on a cash basis.
(4) You have an increasing adjustment if:
(a) you were the recipient of a taxable supply in relation to which you had a decreasing adjustment under subsection ( 3); and
(b) you subsequently pay to the supplier the whole or a part of the amount written off, or the whole or a part of the amount that has been overdue for 12 months or more, as the case requires.
The amount of the increasing adjustment is 10% of the amount paid.