Advance Rent collection refunded

Sir,

We are a charitable institution under 12A registration. We have an auditorium. which we have given for rent. At the time of booking, we collect the advance rent and GST for the amount due and issue a receipt voucher. In some cases, we have to refund the advance and GST paid when the booking is cancelled. At the time of refund, we issue a refund bill.

If there is a refund in a month, we calculate the taxable amount of the month as given below and file the returns accordingly.

Taxable amount = total rent collected minus total rent refunded

Is this procedure correct? If not, please inform me how it has to be processed.

Thanking you

Antony K V

Replies (4)
Quick Summary
This discussion addresses the correct method for a charitable institution to handle advance rent refunds and their impact on GST calculations. The institution collects advance rent and GST upon booking and issues a refund bill upon cancellation. They currently calculate their taxable amount by deducting total refunded rent from total collected rent. The consensus is that this method is correct, provided GST is paid on advance receipts, which the institution confirms they do.

please do not consider my reply .

please do not consider my reply 

The procedure, which you are following for computing the liability is correct only, if you are paying GST on Advance Receipts.

Thank You.

We are paying GST on advance receipt

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