Field 3.2 of GSTR3B is wrongly auto-populated with advance received

I was about to file our GSTR-3B and say that field 3.2 is autopopulated with "Supplies to unregistered person" and has Rs 100,000 as "taxable value" and Rs 18,000 with "Dadra and Nagar Haveli" in the state field. I have rechecked the GSTR-1 and no such supply has been shown by us. GSTR-1 and GSTR-IFF have the correct invoices with GSTN of the customers and the names of the customers are autopopulated.

We have 1,25,000 as advance received in table 11a (from Dadra and Ngarhaveli) and Rs 25,000 as adjustment of advance for previous period in 11b, (dadra and nagar haveli) and the net comes out to Rs 100,000. So I guess it is taking it from there, but the advance has been received from a registered customer and invoice is not yet issued so obviously not mentioned in GSTR-1. So what should we do with the table 3.2? Should we let it as it is? Or should we delete it?

The invoice will be issued in October after receipt of the balance payment and this Rs 1,25,000 will be shown as adjustment of advance and the invoice will be shown in GSTR-IFF.

What should be the correct course of action? Please help.

Hi Reena,

This is a common confusion with Field 3.2 of GSTR-3B (Supplies to Unregistered Persons), especially when advance receipts are involved.

What’s happening here?

Your advance receipt of Rs. 1,25,000 from a registered customer is being auto-populated in 3.2 as supply to unregistered persons (likely because advance receipts are reported in Table 11a or 11b in GSTR-1 or IFF without invoice details).
Since no invoice is issued yet (invoice issuance is planned later), the system considers this as a supply to unregistered persons.
Your GSTR-1 & IFF are correct for actual supplies and invoices issued.

What should you do?

Do not delete the auto-populated amount in 3.2 forcibly
If you delete it without proper correction, your GSTR-3B and GSTR-1/IFF reconciliation might show mismatch and may trigger scrutiny.
Correct reporting in GSTR-1/IFF for advance receipt
Since advance has been received from a registered person, it should ideally be reported in the advance receipt section against the registered customer (Table 11a) with the correct GSTIN.
Advance Receipt from Registered Person
As per GST law, advances received from registered persons are not reported under 3.2 (supplies to unregistered persons) but under Table 9B (advance received) in GSTR-1 or the corresponding section in IFF.
Check your Table 11a & 11b entries
If you have recorded the advance under Table 11a (advance received) correctly with GSTIN of the customer, the auto-population in 3.2 should ideally not happen.
File a correction (Amendment) in GSTR-1/IFF if needed
If you mistakenly entered the advance as from an unregistered person or without GSTIN, you need to correct it by filing an amendment in GSTR-1/IFF.
Invoice issuance & adjustment
When you issue the invoice later and report in GSTR-1/IFF, you will adjust the advance amount. This will clear the advance receipt entries and corresponding tax liability.

Summary - Your immediate steps:

Verify the GSTIN entry against advance receipt in Table 11a and 11b. Make sure it reflects the registered customer’s GSTIN.
If wrongly entered as unregistered, amend GSTR-1/IFF to correct GSTIN.
Don’t delete auto-populated amount from 3.2 without fixing the source of error.
When you issue invoice, show it in GSTR-1/IFF and adjust advance properly.
This will align the advance with correct GSTIN and clear the mismatch.