Rent advance adjust

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This discussion addresses how to handle rent advance payments collected for renovations, especially when GST was charged on the initial advance invoice. The advice clarifies that unadjusted advance amounts can be carried forward and adjusted against future rent payments in the following financial year. Reconciliation can be managed by reporting unadjusted advances in Form 9C for both years, ensuring accurate turnover and GST liability reporting.

RAMAKRISHNA

RAMAKRISHNA (Querist)

21 December 2020 Gm sir, We gave our commercial building on rental basis , we collected advance on premise for renovation .this advance amount adjustable in monthly rent .but we raised advance invoice with gst. we uploaded the advance invoice in gstr 1 , but the advance recovery is continuing till next year , we are adjusting the advance amount monthly in our rent and we calculate the gst on balance amount of rent . how can we show the rent advance adjustment in next year . if adjust the advance in our rent , gst tax liability is not matching with our turnover .kindly give your valuable advise ,how to show the recovery in next year
thanking you sir,

Lekhraj sood

Lekhraj sood (Expert)

21 December 2020 There is no problem . You can show recovery of balance advance in next year. Your turnover will not change, only GST liability will change.

Nandini H Gupta

Nandini H Gupta (Expert)

22 December 2020 There is no time limit for advance adjustment under GST. For first year the unadjusted advance shall be added to turnover in form 9C for reconciliation as "unadjusted advance in the end of financial year " and reduced in the turnover for second year as "Unadjusted Advances at the beginning of the Financial Year "-reconcile in this method.

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