Advance Received- Adjustment

This query is : Resolved

Vignesh Raja (Querist)
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30 July 2024 Hi All,

I have an Issue with the Adjustment of Advances filed in the GSTR1 with the Advance GST Tax is paid in the Previous Month as Advance Received

For Example:
I have Received the Advance of Rs.50,00,000 and Plus GST of Rs.9,00,000 in May'24 and the Total value of 59 Lakhs as advance

Which the Invoice has splitted into 10 Invoices as of for the Project Period requirement
The Advance of Rs.9lakhs has been paid in Advance Received in the Month of May'24, In June I have raised the First Invoice for the Advances received, I have shown the same in the Adjustment of Advance Received 11B (1) & 11B(2)

But It reflecting in the GSTR3B for the Liability to be paid

Kindly share your thoughts on this

As we already shown in adjustment of adavances why it reflecting Tax Liability in GSTR3B

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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13 August 2025 Your Scenario Summarized:
You received Advance Rs.50,00,000 + GST Rs.9,00,000 in May 2024.
You paid GST on advance received in May under Advance Received in GSTR-1 & GSTR-3B.
In June 2024, you raised multiple invoices (split from advance), adjusting the advances.
You reported these invoices and adjusted advance received under Table 11B(1) & 11B(2) in GSTR-1.
However, the GST on advances is still showing as liability in GSTR-3B for June.
Why Does This Happen?
1. GST on Advance is payable when advance is received (Month of May)
GST on advance received must be declared and paid in the month the advance was received (May).
So, the Rs. 9,00,000 GST was correctly paid in May’s GSTR-3B.
2. Invoicing and Adjustment in next month (June) does not create fresh GST liability
When you raise invoices in June and adjust advance against them, you do not pay GST again on that amount.
You simply show the adjustment in GSTR-1 (Table 11B) to link invoices with earlier advance receipt.
3. Why does GST still show in June’s GSTR-3B liability?
Because the GST on advances was already declared and paid in May.
In June’s GSTR-3B, the adjustment of advances does not affect liability; it’s only an information table in GSTR-1.
GSTR-3B is a summary return and does not have a specific field to reduce GST liability by adjusting advances already paid.
How to Verify & Reconcile?
Ensure GST on advances is declared in the month you received advance (May).
In the next month, when invoices are issued against advances, only disclose the adjustment in GSTR-1 Table 11B.
Your GSTR-3B liability will not be reduced in June; it will remain zero or as per actual sales.
The tax paid on advance is adjusted in your books and input credit is availed accordingly.
Important Points:
Point Explanation
GST on advances is paid upfront Declared in the month advance is received
Adjustment of advances in invoices Reflected in GSTR-1 only, not GSTR-3B liability
No double taxation No fresh GST on adjusted invoice amount (already paid)
GSTR-3B shows tax on advances and sales separately Both liabilities appear independently
What to Do If Liability Seems Incorrect?
Cross-check monthly GSTR-3B filings; avoid duplication of advance GST payment.
Reconcile GSTR-1 (adjustment details) with GSTR-3B tax paid.
If mismatch persists, consult your GST practitioner or auditor.

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