Manoj Punjabi (Accountant) (300 Points)
30 June 2025Please guide me on this query:
Advance paid for AMC for 2 years, bill received in FY24-25 with GST on full amount.
GST ITC claimed in FY 24-25.
Now shall we show advance part paid for FY25-26 as prepaid expense in FY24-25
If we show it as prepaid, it will appear as expense in next year FY25-26 without GST payment, as GST on whole amount paid in current year FY24-25.
How to proceed.
prasad Nilugal
( GST Practitioner & Accounts )
(14916 Points)
Replied 30 June 2025
I hope you have received service , now as per section 13 of the CGSTAct , in case of services ( please refer and confirm) , time of supply for payment of GST on prepaid expenses earlier of the following
1) Invoice date
2) payment date
So in your case advance GST paid in 24-25 of 25-26 therefore, time of supply is date of payment , which is correct , So next year only you have adjust prepaid expenses without GST .
In short, In your Case, as per time of supply , GST payable in 24-25 only ,
Take more opinion on this.
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