Advance Rent collection refunded

Antony (Manager) (61 Points)

06 October 2022  

Sir,

We are a charitable institution under 12A registration. We have an auditorium. which we have given for rent. At the time of booking, we collect the advance rent and GST for the amount due and issue a receipt voucher. In some cases, we have to refund the advance and GST paid when the booking is cancelled. At the time of refund, we issue a refund bill.

If there is a refund in a month, we calculate the taxable amount of the month as given below and file the returns accordingly.

Taxable amount = total rent collected minus total rent refunded

Is this procedure correct? If not, please inform me how it has to be processed.

Thanking you

Antony K V