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If we take advance amount on rent shall we file gst nil return or non nil return?

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Ravikiran

Jr accountant

29 Points Posted on 30 November 2020

I have a small doubt my employer gives is building for rent to educational institutions he has gst registration regards getting income from rental per month 5lakh but if he gets rental income 3lakh from institution by advance shall he file nil return or liability on taking 3 lakhs perticular month .

Replies (3)

Quick Summary

If you receive an advance payment for rent, you cannot file a nil GST return for that period. GST is payable on services, including rent, based on the earlier of the receipt date or invoice date. Therefore, GST is applicable on the advance amount received, and it must be declared as output tax in your GSTR-3B. A receipt voucher should be issued, and the GST paid on the advance can be adjusted against the invoice in a subsequent month.

Bullseye Advisors

GST consultants

89 Points Posted on 30 November 2020

On services (including rent), GST is payable on receipt or invoice, whichever is earlier. Hence, on advance GST is payable.

In 3B it has to be shown as regular output tax. In GSTR1, it can be shown under advances and adjusted against invoice in subsequent month.

Receipt voucher has to be raised upon receipt of advance.

Shivam RC

Student

23693 Points Posted on 30 November 2020

GST @ 18% would be applicable on the Advance Amount of Rent received. As per the Provision of Section 13 of the CGST Act 2017, the Time of Supply incase of Supply of Services is earlier of the following :

(a). Date of Payment
(b). Tax Invoice

Therefore you cannot file NIL Return for the month when you have received the advance payment...