INWARD SUPPLY

VOUCHER TYPE -PURCHASE

PURCHASE/EXPENSE/FIXED ASSET A/C DR.
RESPECTIVE INPUT GST A/C DR.
TO CREDITOR/ SUPPLIER/ SERVICE PROVIDER A/C

OUTWARD SUPPLY
VOUCHER TYPE -SALES
DEBTOR/SERVICE RECEIVER A/C DR.
TO RESPECTIVE OUTPUT GST A/C
TO SALES/OTHER INCOME A/C

EXEMPT SUPPLY
VOUCHER TYPE -SALES
DEBTORS/ SERVICE RECEIVER A/C DR.
TO SALES

RCM SUPPLY
VOUCHER TYPE -PURCHASE
EXPENSE A/C DR.
RESPECTIVE RCM INPUT A/C DR.
TO CREDITOR/ SERVICE PROVIDER A/C
TO RESPECTIVE RCM POUTPUT A/C

ACCOUNTING TREATMENT IN CASE OF ADVANCE RECEIPT FOR SERVICES FROM SERVICE RECEIVER

Section 31(3)(d) of the CGST Act provides that on receipt of advance payment with respect to any supply
of goods or services or both, a registered person shall issue a receipt voucher or any other document,
containing such particulars as prescribed in Rule 50 of the CGST Rules, evidencing receipt of such
payment. 1st proviso to Rule 50 further states that where at the time of receipt of advance-

(i) the rate of tax is not determinable, the tax shall be paid at the rate of 18%;
(ii) the nature of supply is not determinable, the same shall be treated as inter-State supply.
In case of receipt of advance payment against supply of goods and/or services, date of receipt of advance
payment being the earlier event, is the time of supply as per the provisions of section 12(2)(b) and
13(2)(a) and (b) of the CGST Act. However, by virtue of N. No. 66/2017-Central Tax dated 15th November,
2017, receipt of advance against supply of goods is no longer a determining factor to ascertain time of
supply. Effective from 15th November, 2017, only the date of issue of invoice or the last date when an
invoice is required to be issued under section 31(1) of the CGST Act shall determine the time of supply in
case of supply of goods. This notification has superseded N. No. 40/2017-Central Tax dated 13th October,
2017, by which only a registered person with aggregate turnover upto 1.50 crores is entitled to this
benefit.

However, on receipt of advance against supply of services, date of receipt of advance, being earliest
event, shall continue to be time of supply as per the provisions of section 13(2)(a) and (b).

VOUCHER TYPE- RECEIPT

BANK/CASH DR. 100
RESPECTIVE GST ON ADVANCE DR. 18
TO RESPECTIVE OUTPUT GST A/C 18
TO DEBTOR/SERVICE RECEIVER A/C 100
(Being advance payment received and recognition of GST Liability)
VOUCHER TYPE -SALES
DEBTOR/SERVICE RECEIVER A/C DR. 70.8
TO RESPECTIVE OUTPUT GST A/C 60
TO SALES/OTHER INCOME A/C 10.8

RESPECTIVE OUTPUT GST A/C DR 10.8

TO RESPECTIVE GST ON ADVANCE 10.8
(Being amount of GST adjusted with the amount paid)

MONTH END SET-OFF ENTRIES

VOUCHER TYPE -JOURNAL
E-CREDIT GST A/C DR.
TO RESPECTIVE INPUT GST A/C
TO RESPECTIVE RCM INPUT A/C

RESPECTIVE OUTPUT GST A/C DR.

RESPECTIVE RCM POUTPUT A/C DR.
TO E-LIABILITY GST A/C

E-LIABILITY GST A/C (OTHER THAN RCM) DR.

TO E-CREDIT GST A/C
(TO THE EXTENT OF LOWER OF ITC OR LIABILITY)

ENTRIES AT THE TIME OF GSTR -3B

VOUCHER TYPE -JOURNAL
E-CASH GST A/C DR.
TO BANK A/C
(CHALLAN CREATION)

E-LIABILITY GST A/C (OTHER THAN RCM) DR.

TO E-CASH GST A/C

E-LIABILITY GST A/C (RCM) DR.

TO E-CASH GST A/C

GST INTEREST/ LATE FEES/ PENALTY DR.

TO E-CASH GST A/C