Treatment of pre-paid and outstanding expenses under gst

This query is : Resolved

CA Antriksh Mishra (Querist)
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13 June 2018 Dear Member,
Please suggest the treatment of Prepaid and outstanding expenses under GST.

Thank,
Antriksh Mishra

RAJA P M

RAJA P M (Expert)
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13 June 2018 Prepaid : If we treat as advance then no need GST. GST applicable at the time of Supply with Invoice...

What is Outstanding Exp...?

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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14 June 2018 GST is leviable on advances when paid against supply of service to be made. Hence advances paid for supply of services to be made and booked as prepaid expenses is liable to GST.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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14 June 2018 Further in respect of outstanding expenses the taxable supply goods/services have already been received against invoices and outstanding for payment. This is also subject to GST.

RAJA P M

RAJA P M (Expert)
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14 June 2018 If Advance Paid then GST not levied for the "ADVANCE PAYMENTS". (GST APPLICABLE ONLY FOR ADVANCE RECEIPTS)

If paid outstanding amounts then not applicable for the outstandings..

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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15 June 2018 Yes that is obvious ...

CA Antriksh Mishra

CA Antriksh Mishra (Querist)
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15 June 2018 Dear Members,
Thank you so much for all your valuable and prompt reply.

Regards,
Antriksh Mishra

RAJA P M

RAJA P M (Expert)
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15 June 2018 You are most welcome Dear...