I have client in Real estate. they are building apartment. They accepted flat booking amount and raise demand as and when required. like all home developers do.
Flats are under construction and no possession has been handed over to customers.
when they get amount from customers along with GST, they show as advance from customers in GSTR 1 and GSTR 3B.
In other words we have never shown a single amount as supply. all receipt from customers have always been shown as advance.
My query is. As i understand, it is case of continuous supply of service, so is it right way to show these amount in GST returns
07 January 2019
Sir, In my humble opinion, you are required to analyze the agreement per se and issue invoice in accordance with agreement, showing all the amount as advance and not issuing a invoice in accordance with the agreement is not prime facie a correct procedure, as it can result in several liabilities in future.
Thanks and regards CA Shubham Sharma Contact-9462302922 email-shubham.vnv@gmail.com
CAclubindia
