GST ON OTHER INCOME

This discussion addresses how to handle GST on advance payments when a booking is partially refunded. The user received an advance of £1,05,000 including 5% GST, but only refunded £1,00,000 due to a lockdown cancellation. The key questions revolve around the correct accounting treatment for the remaining £5,000, including how to show it in the books and its implications for GST and income tax, especially after issuing receipt and payment vouchers.