how to consider advance received from parties in GST
12 Replies
Avinash Jeevan Dsouza
(Assistant In Charge Accountant)
(3292 Points)
Replied 05 October 2017
When you receive the advances you will have to pay the GST.
For eg:
If you receive advance of 118 rupees on 1-10-17. you will have to pay the gst for the same for the month of oct.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 October 2017
Yes I agreed with Mr Avinash.,
The above said same way you supply on October then no need to pay GST on advance...
Otherwise you can't supply on October then you need to pay GST on Advance...
The above said same way you supply on October then no need to pay GST on advance...
Otherwise you can't supply on October then you need to pay GST on Advance...
pradeep kumar
(245 Points)
Replied 05 October 2017
what happened in the case of advance received from customers in month and gst paid ,but same service was not provided and refund later month..plz clarify that
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 October 2017
Pay GST on Advance receipts for the receiving month...
In case supplies not done and advance refund then You can create Payment Voucher and Take Paided tax as ITC...
In case supplies not done and advance refund then You can create Payment Voucher and Take Paided tax as ITC...
Avinash Jeevan Dsouza
(Assistant In Charge Accountant)
(3292 Points)
Replied 05 October 2017
revese of the same.
VI$H@L G@G
(Asstt. Excise & taxation Manager ( Pearl Group))
(45 Points)
Replied 05 October 2017
Mr. Avinash ...
I am agreed with your answer but not agree your Example ... "If you receive advance of 118 rupees on 1-10-17. you will have to pay the 18 rupees for the same for the month of oct".
GST pay total amount so 118X 18% not 100 X 18%
Avinash Jeevan Dsouza
(Assistant In Charge Accountant)
(3292 Points)
Replied 05 October 2017
Ok Thank you.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 October 2017
Mr. Avinash.,
What you mean credit note...?
How to give Credit Note for the advance...?
What you mean credit note...?
How to give Credit Note for the advance...?
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 05 October 2017
Also pay tax on advance is including value. Not on exclude...
100 = 84.75 + 15.25 Tax value...
100 = 84.75 + 15.25 Tax value...
Avinash Jeevan Dsouza
(Assistant In Charge Accountant)
(3292 Points)
Replied 11 October 2017
What are the HSN code for below. 1. Renting of immovable property (Commercial use) 2. Frieght charges collected ( Goods transfort ) 3. Frieght charges paid ( GTA, under RCM) 4. Health service provided by the Hospitals (Exempted Service)
Read more at: https://www.caclubindia.com/forum/hsn-code-for-renting-of-commercial-property-health-services-429667.asp
anshul aggarwal
(Consultant)
(1074 Points)
Replied 11 October 2017
Vishal,
For accounting purpose it is always advisable that you consider advance received inclusive of GST.
Avinash is right. if you receive 118 then you pay 18. Only this way you will be able to offset advance against sales.
If you pay on 118 then how will you offset the extra GST paid.
For accounting purpose it is always advisable that you consider advance received inclusive of GST.
Avinash is right. if you receive 118 then you pay 18. Only this way you will be able to offset advance against sales.
If you pay on 118 then how will you offset the extra GST paid.
anshul aggarwal
(Consultant)
(1074 Points)
Replied 11 October 2017
if I give you order for 1lac I will only make payment of rs. 1,18,000=00 in which 18000 is gst.
if you pay gst on advance of rs. 118000 then you will pay 21240 to govt. then you have paid 3240 extra to govt.
if you pay gst on advance of rs. 118000 then you will pay 21240 to govt. then you have paid 3240 extra to govt.
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