Tax on Advance Received.jpg

We know that GST is payable in case of Receipt of Advance.

This advance has to be deposited with Governement

In this case,person Receiving Advance has to compulsorily issue Receipt Voucher

Example

A gives B Advance of 10000,

GST Rate is 18%

hence,this Advance of 10000 is inclusive of GST

 

Amount before GST =10000*100/118=8474.6

CGST 9%=762.7

SGST 9%=762.7

Total=10000

 

 B has to issue A a receipt voucher containing details of the Advance

 

 

Compulsory Details in Receipt Voucher

As per Rule 5 of GST Revised Invoice Rules:

A receipt voucher referred to in clause (d) of sub-section (3) of section 31 shall contain the following particulars: (a) name, address and

  1. name, address and GSTIN of the supplier;(b) a consecutive serial number containing alphabets or numerals or special characters -hyphen
  2. a consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively, and any combination thereof, unique for a financial year(c) date of its issue;
  3. date of its issue;(d) name,
  4. name, address and GSTIN or UIN, if registered, of the recipient;(e) description of goods or services;
  5. description of goods or services;(f)
  6. amount of advance taken;(g)
  7. rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
  8. amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
  9. place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce;
  10. whether the tax is payable on reverse charge basis; and
  11. signature or digital signature of the supplier or his authorized representative.

 

 

 

  1. Taxation for CA, CS, CMA Bcom M Com Exams May - June 2018
  2. GST for Exams
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .