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Real estate and construction

Aparna (accountant) (189 Points)

29 April 2021

Hello sir,

I am registered in GST. My business is real estate.

I have return the advance receipt which I have received before GST regiam.

Now my question is can I consider In gst or not ??? Can we reduce gst on that amount or not ?

Kindly guide

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9 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 29 April 2021

GST amount paid on advance amount, which is refunded subsequently, can be adjusted through regular GST returns. In this regard reliance is placed upon the table number 9 of GSTR-1 form notified vide CGST Rules 2017.

sabyasachi mukherjee (26047 Points)
Replied 29 April 2021

Aparna

In 2017 you hv received advance and returned the same.
I do not think you can consider it now.
any supplies received on your part.
if not it will be shown as advance received.

Ankit Neema (2742 Points)
Replied 29 April 2021

In my view you need not to consider the GST on the amount.

1 Like

CMA Poornima Madhava (CMA) (13097 Points)
Replied 29 April 2021

Now there will not be any GST liability on such advances as under pre-GST regime, you would have already considered service tax on advance receipts (if applicable).

sabyasachi mukherjee (26047 Points)
Replied 30 April 2021

Read the applicability of gst .
goods and service received for furtherance of business in lieu of consideration then gst is applicable.
Here gst is not applicable since goods is not supplied or services is not rendered as per basic eligibility conditions.
Generally advance received for completed contracts is subject to gst.