How to handle provision entries of 31 March under GST

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Nitin (Querist)
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10 January 2021 I am registered under GST A tenant of mine has made a provision for payment of 2,00,000/- on 31.3.2020. He has also deposited TDS on 2,00,000/-
I came to know of this provision entry from 26AS on 10.12.2020 at the time of filing my Income Tax return for FY 2019-20.
All my GST returns for FY 2019-20 were filed on due date
In my Income Tax return for FY 2019-20 I have not shown 2,00,000/- as income as I have not received any payment from my tenant & I work in payment received system.
I have also not taken credit of TDS & have carried forward to next FY

My query now is -
How do I handle the GST on this provision of 2,00,000/-

1. I can raise a debit note dated 31.12.20, deposit GST as applicable so that the tenant can take GST credit.
2. Or issue a fresh invoice of 2,00,000/- & deposit GST.

Basically I want to understand how to handle provision entries of 31 March under GST

Waiting for the advice
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 January 2021 Raise invoice in April for provision entries. You continue with cash basis of accounting no problem for you. Don't raise any invoice now.

Nitin

Nitin (Querist)
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10 January 2021 I am grateful for such a fast reply.
What did you mean by make invoice in April
I came to know of provision of FY 2019-20?in December 2020. Should I make invoice now in January 2021.
You recommend that for provision entries only invoice is to be made -
To make debit note would be wrong
Regards & thanks,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 January 2021 For March 2020 provision entry you might have made GST invoice in April 2020 why you need to make invoice in December.

Nitin

Nitin (Querist)
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11 January 2021 I was not informed about the provision entry till I saw them in my 26AS in December 2020 at the time of filing my income return. Actually it was rent increase which the tenant was not agreeing to earlier so the rent invoice on the existing rent were made and GST deposited. On their own they decided to increase the rent for the year 2019-20 and made a provision entry on 31.3.2020 of the increase in rent. As such no invoice on the provision could be made by me.
The question now is
To make invoice or debit note to deposit GST & also the tenant can take credit
Regards

Nitin

Nitin (Querist)
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11 January 2021 Sir,
I have not received any payment against the provision made by them nor will they pay me till I issue a document
Thanks
Nitin

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2021 Raise an invoice with current date. In GST and income tax treat it as current month invoice.
You can mention in the invoice arrear relating to earlier period. Deposit GST in current month.

Nitin

Nitin (Querist)
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11 January 2021 it has to be invoice and not debit note -
my CA is insisting on debit note which I was not agreeing to as debit note is for additional value in an invoice
This is my last query
I highly appreciate your help -
Thanks for taking time for me
Regards
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2021 This being rental arrear debit note is also possible.

Nitin

Nitin (Querist)
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11 January 2021 Thanks - you have been helpful
Regards

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