Advance received query

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This discussion clarifies GST implications when an advance payment is received for multiple orders, and one is subsequently cancelled. If the refund occurs within the same month as the advance receipt, GST is only payable on the net amount retained (15 lacs in this case). However, if the refund happens in a different month, GST is initially charged on the full advance (35 lacs), and then reversed for the refunded amount (20 lacs) in the subsequent month.

deepak

deepak (Querist)
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28 August 2021 If a person received of rs. 35 lac advance amount for 2 order before making invoice to other party. and after 7 days one order cancelled and a person has retransfer of rs. 20 lac to other party, so query is that a person has liable to pay gst on 35lac or 15lac only??

deepak

deepak (Querist)
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28 August 2021 Any one please guide us

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2021 GST payable on 15 lacs only.

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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30 August 2021 You need to pay GST on 15 lacs. But if amount refunded back happens in difference month (i.e. not in the month of receipt) then you need to pay GST on 35 lacs in first month then after you need to reverse GST on 20 lacs in next month.

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