Adjustment of Advance Received

[RAHUL GAIKWAD]

We have received the Advance Payment ₹ 10,30,424/- on 10/08/2017.,against Order and paid the CGST & SGST Total ₹ 185476/- at the time of filling 3B return for the month of August 2017. The advance receipt is shoun in GSTR-1 return properly.

We have made the supply against said order in the month of Jan-2018 and paid the full amount of tax as per Invoice Value and shown the sales in 3B without deduction the tax paid on Advance receipt.

Thus We have paid the tax at the time of Advance as well as after making supply.

Kindly provide the solution to reclaim of said Tax paid on advance, as how to claim back.

[Alkesh Jani]

Sir,

In this regards, Please refer Circular No.26/2017-GST dated 29.12.2017. As per the said Circular you can either reduce your liability in the next month or you can claim refund.

Thanks

With Regards

[YAGAY andSUN]

Adjusting the next month's liability will be more feasible and this option needs to be exercised.

AI Summary

Adjustment of advance payment: option to offset tax liability in next GST return or seek refund under applicable circular. The issue is tax paid on an advance receipt and subsequent tax paid again on supply; Circular No.26/2017 GST permits either reducing subsequent GST liability by adjusting the tax paid on advance or claiming a refund, and the practical recommendation is to adjust the paid tax against the next GST liability, with returns and documentary evidence aligned to support the chosen route.