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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details