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Harsh   26 September 2021

How to treat advance recovered by the client under works contract?

Hi,
I have query regarding the treatment for Recovered advance given by the client for, on time completion of the work, (under construction service).
How to treat the advance recovered in GSTR1 Rated 18% (note: the advance is not only recovered after the completion its recovered during the WIP partly till the final bill settlement, when the invoice is raised) so Gst as been paid during the initial advance amount received, henceforth should I reduce the same in the current month taxable amount and also in the GST3B OUTPUT??
please gudie through if I'm wrong/ is their any alternative way to treat the same.
Thank you,
Harsh.


 4 Replies

CA Altamush Zafar

CA Altamush Zafar (GST Consultant)     26 September 2021

Show it in advanced received column in GSTR-1.

Pay taxes on it in GSTR-3B by filling it in column 3.1(a)

1 Like
Harsh

Harsh   26 September 2021

Okay sir and reduce same when the advance is recovered?
CA Altamush Zafar

CA Altamush Zafar (GST Consultant)     26 September 2021

Yes when invoice is made them you will show it in b2b or b2c as the case maybe and also in advance adjusted therefore the net effect will be zero in GSTR-1

In GSTR-3B no payment will have to made since payment already made at the time of receiving advance.

If the final payment is more than advance then GST will have to be paid on the difference amount.

For further details you can mail me.

Harsh

Harsh   27 September 2021

Thank you sir

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