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advances receipt from customer

10 June 2017

kindly explain how to maintain the record with example. if advance received 40000. and same month good sold To then 30000 then what is taxable

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14 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 10 June 2017

Only 30000 is taxable

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Raghavendra (Accounts) (131 Points)
Replied 10 June 2017

If the advance received and subsequent sale is done in the same month means no need of declaring the advance, actual sales only need to declare in GSTR1 and hence Rs. 30,000 is taxable.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 10 June 2017

In my opinion GST will be charged on 40,000/-

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 10 June 2017

No duty charged on Rs.30000/- only as sale is equal to that amt only.

VIKAS SAINI (1163 Points)
Replied 10 June 2017

not clear concept till yet . pls clear with full confidence

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 10 June 2017

You received advance of Rs.40000/- not sold goods in respect of this.

Because you sale only of Rs.30000/- & raised bill in respect of that sale only. So,GST charged on that amt only.

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 10 June 2017

dear vikas in this case on recipt of payment it is mandatory to generate receipt voucher serially which would be of rs 40000/-

& then at the sale time generate tax invoice of Rs 30000/-, then generate Refund voucher for RS 10000/- & payment of gst will be automatically upon rs 30000/-. this is law prescribed procedure if followed actually

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 12 June 2017

But Refund voucher would be generated if no further sale with the customer otherwise excess 10,000/- will be adjusted in next sale.

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 12 June 2017

nope no adjustment would be done . person has to issue refund voucher to the person who made the payment .

VIKAS SAINI (1163 Points)
Replied 12 June 2017

thanks all .
one more query . how to send the goods to job worker. and when should be gst applicable . also role of job worker. pls clear

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CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 12 June 2017

Send goods to job worker by issuing delivery challan . When goods are sent to job worker no gst is charged . However if the inputs so sent are not received back by the principal within the stipulated time., it shall be deemed that inputs had been supplied to job worker on the day when the inputs were sent out and gst would be liable. Stipulated time for inputs 1yr for capital goods other than jigs moulds dies and fixtures or tools 3yrs.

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 12 June 2017

I would like to correct myself regarding advance where receipt voucher has been issued for advance payment and supply is made then supplier would issue credit note for rs.10000 and not refund voucher.

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