Which treatment of gst on advance payment is correct ?
This query is : Resolved
24 June 2017
Suppose 5% GST rate is applicable on the goods we sell. Now we have taken rs 105 as 50% advance(100+5 for GST) from customer.& Sales value is 200.
Option 1:
Upon receiving advance payment:-
Bank a/c dr 105
to GST pay. on adv 5
to Customer 100
GST pay. on adv dr 5
to Bank a/c 5
At the time of making sales:-
Customer dr 205
to Sales 200
to GST payable 5
GST payable dr 5
to Bank 5
Option 2:
Upon receiving advance payment:-
Bank a/c dr 105
to Customer 105
GST paid on adv dr 5
to Bank a/c 5
At the time of making Sales:-
Customer dr 210
to Sales 200
to GST payable 10
GST payable dr 10
to GST paid on adv 5
to Bank a/c 5
Please reply !
Option 1:
Upon receiving advance payment:-
Bank a/c dr 105
to GST pay. on adv 5
to Customer 100
GST pay. on adv dr 5
to Bank a/c 5
At the time of making sales:-
Customer dr 205
to Sales 200
to GST payable 5
GST payable dr 5
to Bank 5
Option 2:
Upon receiving advance payment:-
Bank a/c dr 105
to Customer 105
GST paid on adv dr 5
to Bank a/c 5
At the time of making Sales:-
Customer dr 210
to Sales 200
to GST payable 10
GST payable dr 10
to GST paid on adv 5
to Bank a/c 5
Please reply !
24 June 2017
Option 1 is the right entry.
24 June 2017
Option 2 will be the better accounting practice.
28 June 2017
Please suggest me the correct option !!
03 August 2025
https://docs.google.com/document/d/1NDYkhp85ogblt-8pdkehJ0xeLSGztdEg_Dhw0TwtkME/edit?usp=sharing
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Taxation on LTCG for property sold after 24JUL2024
- GST ON DAMAGED GOODS
- GST Registration Horse racing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
