Land Development - Service Tax and GST regime

[SUDHIRKUMAR SHAH]

Dear Sirs,

One of the Partnership Firm had Service tax Registration no. Firm had acquired land for development of industrial plots. Based on the advise of the consultants Firm has taken service tax registration and started payment of Service tax on advance received from customer for purchase of plots. During the old regime of Service tax they have just received advances, paid service tax and filed returns.

In GST regime also they continued with the practice of receiving advance and paid GST. in the end of 2017-18 they started transfer of property in plots by executing sale deeds. in the Books earlier advance received was shown as sundry debtors. Now based on sale deeds they started booking of sales in books.

Now Sales amount involves advance received during GST regime a well as service tax regime also. Now the question is in GSTR-1 which amount to be reported as sales.

Is it to be the sales after deducting the advance received from customer during Service tax regime ?

if the answer to above question is negative then department will ask for the GST on total amount reported in GST regime ?

Thank you all experts in advance.

AI Summary

Advance receipts and GST: report total outward supplies, show advances separately and pay GST on earlier advances.
Outward supplies in GSTR 1 represent total sales and tax payable; advances received during the Service Tax period or under GST are not deductible from sales. Advances must be declared and adjusted in the GSTR 1 advance/adjustment table, and GST is payable in respect of advances. An advance becomes consideration only when applied at the time of supply, so time of supply and the statutory definition of consideration govern tax treatment and reporting.