Earnest money

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Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2017 GSTR-1....... How a real estste company can show its earnest money (advance money) received in gstr1 because it is not a sale as for now. Please guide me.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 October 2017 Earnest money deposit is nature of refundable deposit. it cannot be treated advance against supply or service. so no need to show in GSTR

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2017 And what about advances ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 October 2017 In GSTR-1 return column No.11 has the place to show the Consolidated statement of advances received and further adjustments

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 Booking or earnest money received from a flat buyer that is to be adjusted against the price is an advance for construction service, so GST is payable on receipt (Sec 13) and it is reported in GSTR-1 Table 11A; only a truly refundable deposit not applied as consideration stays outside GST (Sec 2(31) proviso).

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