Treatment of advance payments against debtors

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NARESH V

Accountant

93 Points Joined July 2014

Hai everyone,

I have small doubt about advance payment treatment under GSTR-1.

If suppose Rs. 10,000/-received from A party. in October month. The same amount of Rs. 10,000/- shown in GSTR -1 under advances receipt column and gst paid.

Hence, November month we have raised a invoice to A for amount of Rs.5000/- and adjust of 20% advance for Rs.2000/- net value is 3000/- and we have paid GST for 3000/- basic value against only.

in my doubt is November GSTR-1 return filing time invoice value is shown for Rs. 5000/- ( 100%) value or its only shown 3000/- ( 80%) ?

Advance adjustment is shown is seperatly shown in Section 11(a).

GST liable for advance received for both services or supplies or if only applicable to services?

Kindly advice the same at the earliest.

Replies (3)

Sarath Rajendran

Nil

2791 Points Joined November 2017

If you are a Service provider pay GST at the time when you receive the advance amount and these amount adjusted in gstr 1 for the period when you arise BIll against that advance amount.

If you are a supplier of goods pay GST on Advance at the time when you araise bill

NARESH V

Accountant

93 Points Joined July 2014

ok.

But how can adjust the advance. I mean treatment of advance under GSTR-1.

Either i can show 80% of invoice value or 100% of invoice ?

pritesh

CA Final student

7106 Points Joined April 2018

you cannot change the invoice value in gstr 1 you have to show 5000

in gstr 3b you have to pay tax on 3000 bcous on 2000 yoh have already paid the tax.