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GST Annual Return

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Debas Maji

Jr. Exe

35 Points Posted on 13 July 2020

Sir/Madam,

I have a client (service provider ) whose gross turnover in the previous year grater than 2.5 crore. We paid in cash (as there is no itc) all the liabilities which shown in gstr 1 monthly basis. But one of debtor have made a payment excess 3 lakhs as advance and I have no information about it. Now when I go to finalize gstr 9, I found rs. 3 lakhs received in excess. My question is how to show this extra 3 lakhs in gstr 9 as there is no invoice has been issued and is he liable to pay gst for that 3 lakhs. please sir suggest.

Replies (4)

Quick Summary

This discussion addresses how a service provider with a turnover exceeding 2.5 crore should handle an unexpected advance payment of 3 lakhs received from a debtor when finalising their GST Annual Return (GSTR-9). The consensus is that GST is payable on advances received for services, even without an invoice. The advice is to pay the applicable GST along with interest at 18% using Challan DRC-03, declaring it as an advance received in Table 4 of the GSTR-9 and issuing a receipt voucher.

CA Sunil Kumar

Chartered Accountant

2301 Points Posted on 13 July 2020

Service provider receiving advance must pay GST on the advance received.So pay GST with interest.

Sachin Pal

65 Points Posted on 13 July 2020

Show as an advance received and show figures in table 4 and pay gst through drc-03

Ashish Gupta

24 Points Posted on 13 July 2020

Fake bill generate

Shivam RC

Student

7666 Points Posted on 13 July 2020

Supply includes transaction "MADE OR AGREED TO BE MADE". Therefore Advance Received is also taxable under GST.

However W.E.F 15th November 2017 ( Notification No. 66/2017 - Central Tax, dated 15.11.2017 ), Advance Received on Supply of Goods is not chargeable to GST. Therefore only Advance Received with respect to Supply of Services attracts GST at the time of receiving such Advance.

Therefore you have to pay GST on Advance Received from the debtor in excess of Rs. 3 lakhs along with Interest @ 18% via Challan DRC-03 from the month when it was credited to your Bank Account ( you need to issue a Receipt Voucher to your Debtor ).