10 January 2021
I am registered under GST A tenant of mine has made a provision for payment of 2,00,000/- on 31.3.2020. He has also deposited TDS on 2,00,000/- I came to know of this provision entry from 26AS on 10.12.2020 at the time of filing my Income Tax return for FY 2019-20. All my GST returns for FY 2019-20 were filed on due date In my Income Tax return for FY 2019-20 I have not shown 2,00,000/- as income as I have not received any payment from my tenant & I work in payment received system. I have also not taken credit of TDS & have carried forward to next FY
My query now is - How do I handle the GST on this provision of 2,00,000/-
1. I can raise a debit note dated 31.12.20, deposit GST as applicable so that the tenant can take GST credit. 2. Or issue a fresh invoice of 2,00,000/- & deposit GST.
Basically I want to understand how to handle provision entries of 31 March under GST
10 January 2021
Raise invoice in April for provision entries. You continue with cash basis of accounting no problem for you. Don't raise any invoice now.
10 January 2021
I am grateful for such a fast reply. What did you mean by make invoice in April I came to know of provision of FY 2019-20?in December 2020. Should I make invoice now in January 2021. You recommend that for provision entries only invoice is to be made - To make debit note would be wrong Regards & thanks,
11 January 2021
I was not informed about the provision entry till I saw them in my 26AS in December 2020 at the time of filing my income return. Actually it was rent increase which the tenant was not agreeing to earlier so the rent invoice on the existing rent were made and GST deposited. On their own they decided to increase the rent for the year 2019-20 and made a provision entry on 31.3.2020 of the increase in rent. As such no invoice on the provision could be made by me. The question now is To make invoice or debit note to deposit GST & also the tenant can take credit Regards
11 January 2021
Raise an invoice with current date. In GST and income tax treat it as current month invoice. You can mention in the invoice arrear relating to earlier period. Deposit GST in current month.
11 January 2021
it has to be invoice and not debit note - my CA is insisting on debit note which I was not agreeing to as debit note is for additional value in an invoice This is my last query I highly appreciate your help - Thanks for taking time for me Regards Regards
CAclubindia
