Prepaid Expenses entry on which GST already paid

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Please 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.

Replies (1)

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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