Gst on marriage hall or mandap keeper

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UMESH DHOOT

SELF EMPLOYED

21 Points Posted on 01 August 2017

my query is

Marriage hall is booked for future date say for November 2017. Rent of the hall is Rs. 25000/- and Rs. 25000/- is collected towards electric, gas, parking and other exps etc. We have to pay Rs. 50000/- at the time of booking. The final bill to the customer with Rent, electric, gas etc comes to Rs. 45000. Rs. 5000/- is to be refunded.

My question is

1) GST is applicable at what time i.e at booking or on final billing in Nov. 2017.

2) If at the time of booking, GST is paid on full amt on Rs. 50000/- then at the time of final bill in Nov. 2017, GST can be reversed on the refund amt i.e Rs. 5000/-

Please guide

Thanks

umesh dhoot

Replies (5)

Gaurav Agrawal

15 Points Posted on 01 August 2017

As you are paying advance against booking, GST will be applicable on date of booking

Ayan Binani

Deputy Manager(Finance)-CA

60 Points Posted on 01 August 2017

1. Under Sec 13(2)(a),GST shall be payable on the date of receipt of payment or date of invoice whichever is earlier. In this case, payment is in advance, so date of payment of advance shall be the date on which GST is payable.

It may be noted that receipt voucher must be issued by recepient of advance upon receipt of advance payment. The reason is linked with the answer of your second query

2. At the time of invoicing, if some amount is to be refunded, then the amount can be refunded on the basis of a refund voucher along with GST. The GST refunded can be claimed as Input Credit. The refund voucher can be made only if both supplier and recepient of service are in possession of receipt voucher.

As a more practical approach, instead of paying Rs. 50k as advance, show it as a deposit and adjust it at the time of invoicing. Refund the excess amount when necessary. Paper work and GST compliance shall be much less. GST shall be payable at time of invoice only.Simple.

Gopala Krishnan

2 Points Posted on 19 November 2017

A marriage hall collecting one lakh for rent, twenty thousand for electricity charges and twenty thousand for decorations. What is the GST for rent and decorations? If his annual turnover is below the slab rate as to how I il be refunded?

ANIL G KULKARNI

TAX CONSULTANTS

22 Points Posted on 29 January 2019

My marriage function hall is under process, now we are purchasing Chaires, AC, FANS, MANGAL SEVA SAHITYA ETC WHETHER INPUT GST ON THESE ITEMS IS USE FOR SET-OFF, PLS GUIDE