Gst query
This query is : Resolved
02 May 2018
Hi,
1. Do we need to show the credit recd from a customer in march for the invoice raised in april as advance received in march return?
2. Do we need to show the input services availed from an unregistered supplier in march return even though the RCM has been suspended till 30th June 2018.
3. What could be done If both the above has been missed to show in march return.
1. Do we need to show the credit recd from a customer in march for the invoice raised in april as advance received in march return?
2. Do we need to show the input services availed from an unregistered supplier in march return even though the RCM has been suspended till 30th June 2018.
3. What could be done If both the above has been missed to show in march return.
Guest
Guest
(Expert)
02 May 2018
1) Advance received has to be shown in the month of receipt
2) Show it as exempt purchase
3) Show it in next month's return
27 July 2024
Here are detailed answers to your GST queries:
### **1. Credit Received from a Customer in March for an Invoice Raised in April**
**Query:** Do we need to show the credit received from a customer in March for the invoice raised in April as an advance received in March's return?
**Answer:**
- **Advance Received:** Under GST, if you receive any advance payment for goods or services before the invoice is issued, you need to record it in the GST returns for the period in which the advance is received.
- **Reporting in Return:** If you receive credit or an advance payment from a customer in March for an invoice that will be raised in April, you should report this advance payment in your March GST return. The advance payment needs to be reported under "Advance Received" in GSTR-1 and as output tax liability in GSTR-3B for March.
- **Adjusting in April:** When you raise the invoice in April, you should adjust the advance received by reducing it from the total invoice amount. The invoice details will be reported in your GSTR-1 for April, and the corresponding output tax liability should be adjusted accordingly.
### **2. Input Services Availed from an Unregistered Supplier in March**
**Query:** Do we need to show the input services availed from an unregistered supplier in March's return even though the RCM has been suspended until June 30, 2018?
**Answer:**
- **Reverse Charge Mechanism (RCM):** If the RCM provisions for input services from unregistered suppliers were suspended till June 30, 2018, you are not required to pay GST under RCM on such services during this period.
- **Reporting in Return:** Despite the suspension of RCM, you still need to account for the input services received and maintain proper records. However, you are not required to include these transactions in your GST returns or pay GST under RCM for the period during which the suspension was in effect.
- **Adjustments Post-Suspension:** After June 30, 2018, if you receive services from unregistered suppliers and RCM is applicable again, you will need to pay GST under RCM and report it in the returns accordingly.
### **3. Action for Missed Reporting**
**Query:** What can be done if both the above have been missed in the March return?
**Answer:**
- **Correction in Subsequent Returns:** If you missed reporting the advance received in March and input services availed from an unregistered supplier (if applicable) in your March return, you should make corrections in your subsequent GST returns.
- For the advance received, include the correction in your April return by adjusting the invoice amount and reconciling the advance received.
- For the input services under RCM (if it was not suspended), you should report and pay the applicable GST in the returns for the period in which the RCM applies. If missed, rectify it in the next available return period.
- **Amendment of Returns:**
- **GSTR-1:** Amend the details in GSTR-1 in the subsequent months and ensure correct reporting in the respective month’s return.
- **GSTR-3B:** Include the missed amounts in the relevant sections of the GSTR-3B in the next filing period.
- **Interest and Penalty:**
- **Interest:** You may be liable to pay interest on the delayed payment of GST under RCM or on the advance payment not reported correctly.
- **Penalty:** Depending on the severity and the nature of the mistake, a penalty might be applicable.
- **Rectification:** For significant errors or missed reporting, you might need to approach the GST department for guidance on how to rectify the discrepancies and ensure compliance.
**Reference:**
- **Section 39 of CGST Act** - Deals with the filing of returns and the necessity of correctly reporting advances and input services.
- **Section 42 and Section 43** - Provide details on the reconciliation and rectification of errors in GST returns.
Always ensure to keep proper documentation and consult with a GST practitioner or professional to handle corrections and compliance efficiently.
### **1. Credit Received from a Customer in March for an Invoice Raised in April**
**Query:** Do we need to show the credit received from a customer in March for the invoice raised in April as an advance received in March's return?
**Answer:**
- **Advance Received:** Under GST, if you receive any advance payment for goods or services before the invoice is issued, you need to record it in the GST returns for the period in which the advance is received.
- **Reporting in Return:** If you receive credit or an advance payment from a customer in March for an invoice that will be raised in April, you should report this advance payment in your March GST return. The advance payment needs to be reported under "Advance Received" in GSTR-1 and as output tax liability in GSTR-3B for March.
- **Adjusting in April:** When you raise the invoice in April, you should adjust the advance received by reducing it from the total invoice amount. The invoice details will be reported in your GSTR-1 for April, and the corresponding output tax liability should be adjusted accordingly.
### **2. Input Services Availed from an Unregistered Supplier in March**
**Query:** Do we need to show the input services availed from an unregistered supplier in March's return even though the RCM has been suspended until June 30, 2018?
**Answer:**
- **Reverse Charge Mechanism (RCM):** If the RCM provisions for input services from unregistered suppliers were suspended till June 30, 2018, you are not required to pay GST under RCM on such services during this period.
- **Reporting in Return:** Despite the suspension of RCM, you still need to account for the input services received and maintain proper records. However, you are not required to include these transactions in your GST returns or pay GST under RCM for the period during which the suspension was in effect.
- **Adjustments Post-Suspension:** After June 30, 2018, if you receive services from unregistered suppliers and RCM is applicable again, you will need to pay GST under RCM and report it in the returns accordingly.
### **3. Action for Missed Reporting**
**Query:** What can be done if both the above have been missed in the March return?
**Answer:**
- **Correction in Subsequent Returns:** If you missed reporting the advance received in March and input services availed from an unregistered supplier (if applicable) in your March return, you should make corrections in your subsequent GST returns.
- For the advance received, include the correction in your April return by adjusting the invoice amount and reconciling the advance received.
- For the input services under RCM (if it was not suspended), you should report and pay the applicable GST in the returns for the period in which the RCM applies. If missed, rectify it in the next available return period.
- **Amendment of Returns:**
- **GSTR-1:** Amend the details in GSTR-1 in the subsequent months and ensure correct reporting in the respective month’s return.
- **GSTR-3B:** Include the missed amounts in the relevant sections of the GSTR-3B in the next filing period.
- **Interest and Penalty:**
- **Interest:** You may be liable to pay interest on the delayed payment of GST under RCM or on the advance payment not reported correctly.
- **Penalty:** Depending on the severity and the nature of the mistake, a penalty might be applicable.
- **Rectification:** For significant errors or missed reporting, you might need to approach the GST department for guidance on how to rectify the discrepancies and ensure compliance.
**Reference:**
- **Section 39 of CGST Act** - Deals with the filing of returns and the necessity of correctly reporting advances and input services.
- **Section 42 and Section 43** - Provide details on the reconciliation and rectification of errors in GST returns.
Always ensure to keep proper documentation and consult with a GST practitioner or professional to handle corrections and compliance efficiently.
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