GST on advance received for Wedding in Hotel.

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This query is : Resolved

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This discussion addresses the Goods and Services Tax (GST) applicable to advance payments received by hotels for wedding bookings. The consensus is that GST must be paid on advances at the time of receipt, with the applicable rate depending on the services booked. While it can be complex to track and adjust these payments, especially for smaller firms, it is a requirement under the GST Act. A tax invoice should be issued at the final settlement, adjusting for the advance payments and GST already paid.

Sidney

Sidney (Querist)
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12 February 2020 Dear Sir,

Please confirm the below.
Do we have to pay GST on advances received in mulitple times in 3 or 4 months for wedding in hotel. I am working in Hotel. Here, Wedding group books n number of Rooms and Restaurant for Wedding and they pay advances for booking . If we have to pay GST on advances then what is basis for calculation of GST. Sometimes there is major changes all the time and while preparing final bill there is always variance between final bill and GST paid on advances. Please guide.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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12 February 2020 Whenever you received an advance , Pay GST at the applicable rate of services against which advance has been received.
At the time of the final settlement, issued a tax invoice and adjust advance received and GST paid thereon.

Gokul Sharma

Gokul Sharma (Expert)
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12 February 2020 but mam its very hard to book and adjust these record of middle class of firms. no such software available for such things.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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12 February 2020 Yes. You are right. It is really complicated and difficult to maintain accounts like this.
But as per the GST Act, this need to be followed

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