Unbilled Revenue

This query is : Open

Tejas (Querist)
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23 August 2020 My Client provides payroll processing services where he processes payroll and raises bills as follows...
Jan 20 payroll processed in Feb 20, So bill is raised in Feb 20 and GST is paid in March 20. However, even though March Month payroll bills are to be raised in April 20, As per Income Tax provisions, Income of March Month bills are booked in March 20 itself.
Now the question is, March Month Payroll bills which normally would have been booked in April but due to Income Tax Provisions booked in March itself, GST is payable in which month? Is it possible to treat such bills as Unbilled Revenue in Income Tax and GST is paid in Normal way. i.e. March Bills to be raised in April and GST paid in May 20 Or GST is payable in April itself treating these bills as March Bills merely because they are treated as revenue under income tax Act even if actual billing has not taken placed in March 20

Lekhraj sood

Lekhraj sood (Expert)
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24 August 2020 GST is payable as per invoice date.So if you raise bill in April of services provided in March, then the GST to be reported in your April month GSTR1 and GSTR3B.

Tejas

Tejas (Querist)
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25 August 2020 But Sir this case, In Books of Accounts, If income is booked on accrual basis without issuing invoices to comply with income tax provisions then what will happen???
Because in this case, Revenue will be recognized in March itself in in books of account, even if Bills are not issued to comply with Income Tax Act...
In this case, will I need to pay GST in April as revenue is booked in March or at the time of issuance of actual invoice...
Can interest be levied here for the period from recognition of revenue in the Books of Account and actual issuance of Invoice?
When does the concept of "Unbilled revenue" apply in GST

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