ADVANCE

RECEIPTS ON GST
DEEPAK SINGH
EXAMPLE OF ADVANCE RECEIPTS

• Received a cheque of Rs. 50000 from Deepak Singh As an Advance against sale of
Computer laptop GST @28% in the month of April 2023.
• In the same month, Computer Laptop was sold to deepak Singh for Rs. 50000 with GST
28% on credit after adjusting the advance amount of Rs 50000.
 CONDITION OF ADVANCE RECEIPTS

• IF TURNOVER IS LESS THAN Rs. 1.5 • IF TURNOVER IS MORE THAN Rs. 1.5
Crores you need not pay tax on advance Crores you need pay tax on advance receipts.
receipts.

 
• If the turnover of your company business is over and above Rs 1.5 crores. You can record the
advance amount received from customers in a receipts voucher by making it as advance receipt.
• You need to pay GST for any advance received for goods or services, if the supply is not
fulfilled in the same period.
• When a sales invoice is raised against an advance received in a different tax period, you need to
track the sales against the advance received.
• The Advance payment received from the customer may need to be reported in GSTR1 and
GSTR-3B.
STEPS ON TALLY PRIME

• Enable of reverse charge on your • Receipt Voucher

company • Increase tax liability
• Create Debtor Ledger
• Create (invoice) Sale Voucher
• Create Sale Ledger
• Decrease Tax Liability
• Create Stock Item
SET THE OPTION ENABLE TAX LIABILITY ON
ADVANCE RECEIPTS TO YES
ADVANCE RECEIPTS FROM CUSTOMER AGAINST
SALE OF GOODS
• Go to gateway of Tally>Voucher>F6 Receipt
• ALT + J> open dialog box names Stats Adjustment for :GST> select the list of nature
“Advance Receipt”
 THE ADVANCE RECEIPT DETAILS SCREEN

• Select the stock item

• Enter the advance amount
JOURNAL VOUCHER TO INCREASE GST LIABILITY
AGAINST ADVANCE RECEIVED FROM CUSTOMER

• Go to gateway of tally> display more report> GST Reports> GSTR1

• Alt + J: Stat Adjustment
SALE INVOICE LINKED WITH ADVANCE
RECEIPTS IN SAME MONTH
REVERSE TAX LIABILITY ON ADVANCE RECEIPT
FOR SALE COMPLETED IN SAME MONTH
• Go to gateway of tally> display more report> GST Reports> GSTR1
• Alt + J: Stat Adjustment
ASSIGNMENT

• Suppose on 1-4-2023, You have received amount advance payment 50000 behalf your
computer Laptop. On 2-4-2023, It will cancel advance against sell its computer Laptop.
Now you will do entire entry?