(1) Where a transaction for a supply is cancelled‚ and a portion of the consideration previously received is retained by the supplier at the time of returning it‚ then the tax applicable on the portion thus retained may be adjusted while making adjustments in consequence of the cancellation.

(2) If a transaction for any supply is cancelled‚ and the supplier realises any money from the recipient as a consequence thereof, that realised money shall be treated as the consideration for the supply in the tax period in which it is realised and taxes shall be payable.