Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Gst on advance received

Somanath Pattanaik (5 Points)

04 October 2017

we have received advance from our client but billing will be done after two months. Should we have to show it in Gstr1 when we received advance or after billing done. pls advice. thanks.

Reply
Follow
Share

15 Replies

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 04 October 2017

You have to pay tax on Advance Received in GSTR1.

Upgrade to CAclubindia Pro. Subscribe Now!

Somanath Pattanaik (5 Points)
Replied 04 October 2017

Thank you sir

Ajay Prajapati (512 Points)
Replied 05 October 2017

ex- if you reveived advance 50k in july you have to pay RCM on its by back calculation and u have to show this in gstr 1 july .... after it you sold goods in september you can adjust your last tax (july) in august gstr1 means if you sold goods rate 60k and tax is 5% like cgst 1500 and sgst 1500 in july u already pay tax on value 50k tax. 5% cgst 1190 sgst 1190

in august you have to pay cgst 1500-1190= 310 same amount sgst

hope.its help

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 05 October 2017

Reverse calculation is not mandatorily done. You may calculate tax on 50k directly also. It will be simple to calculate but more blockage of funds.

Ajay Prajapati (512 Points)
Replied 05 October 2017

we have to adjust tax on customer receipt amount so back calculation is mandotary

suppose customer gives 10k in july tax 5% cgst taxable is

Upgrade to CAclubindia Pro. Subscribe Now!

Ajay Prajapati (512 Points)
Replied 05 October 2017

9523 and cgst 476 sgst 476

he cancelled it in august we already pay tax in july when we gives refund to customer its his taxable value not advance amount

Ajay Prajapati (512 Points)
Replied 05 October 2017

back calculation is mandatory for our books of account and future adjustment ... we have to pay tax from customer amount not from our pocket

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 05 October 2017

I disagree with the mandatory part. Although reverse calculation can be done, but not mandatorily.

Ajay Prajapati (512 Points)
Replied 05 October 2017

its depends on you ... how you manage it but if you want clear books of account then its mendatory

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 05 October 2017

Well. If it is mandatory then there can't be any if. GST Law doesn't make its calculation mandatory. Can you provide me with any reference to GST Law?

Upgrade to CAclubindia Pro. Subscribe Now!

Ajay Prajapati (512 Points)
Replied 05 October 2017

now calculation is depend on gst law.... pls use common sense brother ... how u manage tax without taxable value ... if you want to give this tax from your pocket then ok

Ajay Prajapati (512 Points)
Replied 05 October 2017

if you find calculation in gst law we r getting old till then to understand gst

Ajay Prajapati (512 Points)
Replied 05 October 2017

use any accountung software u understand easily

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 05 October 2017

GST Law provides Valuation Rules for calculation. So yes, calculation depends on GST Law. You will find that if common sense to be used, then

Upgrade to CAclubindia Pro. Subscribe Now!

Join CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Trending Online Classes

Certification Course on GST Invoice Management System (IMS)

CA Pratibha Goyal

Enroll Now

28 November 2024
Certificate course on Income Taxation of Indians in the US

Saniya Mushrif

Enroll Now

30 November 2024
Basics of UAE Corporate Tax and VAT(With Recording)

CA Mohd Asim

Enroll Now

07 December 2024

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings