TaxTMI 
TaxTMI 
TaxTMI 
Whether HSN summary be adjusted for Advance received
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....hether HSN summary be adjusted for Advance received<br> Query (Issue) Started By: - Vaishnavi Bubesh Dated:- 23-4-2025 Last Reply Date:- 23-4-2025 Goods and Services Tax - GST<br>Got 1 Reply<br>GST<br>Dear Experts, We are having a query regarding the inclusion of receipt of advance (Table 11A) & adjustment of advances in Table 11B in HSN summary (Table 12) of GSTR-1. As if we are not showing adv....
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....ance receipt & adjustment of advance in HSN summary it will not match with total tax liability as per GSTR-1. Thanks in advance. Reply By YAGAY andSUN: The Reply: That's an excellent and important question, especially from a reconciliation standpoint. You're absolutely right in noticing a discrepancy between total outward tax liability in GSTR-1 and the HSN-wise summary if advance rece....
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....ipts (Table 11A) and their adjustments (Table 11B) are not reflected in Table 12 (HSN Summary). Let's address this with clarity, logic, and regulatory reference. 🔍 Query Summary * Table 11A (Advance Received) and 11B (Advance Adjusted) in GSTR-1 captures advance tax liability on services, mostly relevant for service providers. * Table 12 (HSN Summary) shows HSN-wise taxable values and....
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.... tax amounts, intended for all outward supplies. 🤔 Problem: If you don't include advances in Table 12, the total taxable value & tax in Table 12 will not match total liability in GSTR-1. ✅ CBIC Clarification & Practical Approach As per FAQs and guidance from GSTN/CBIC, HSN-wise summary in Table 12 should ideally include all outward taxable supplies, which includes advance receipt....
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....s and their adjustments, to ensure reconciliation of total tax liability. 📌 Key Practical Point: Yes, advances and their adjustments should be included in Table 12 of GSTR-1 under the appropriate HSN code, especially if you're showing tax on advances in Table 11A/11B. 🛠️ Recommended Treatment Table What to Report Table 11A Report all advances received during the t....
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....ax period (services) Table 11B Report adjustments of previously reported advances Table 12 Include the value of advances and adjusted advances under respective HSNs in the month of receipt/adjustment to match with tax liability 👉 This ensures your HSN-wise tax summary in Table 12 equals total liability shown across Tables 4, 5, 6, 7, and 11. 📝 Suggested Compliance Approach ....
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....* Track all advances received and identify HSN-wise classification. * Update Table 12 for: * Advances received (HSN + taxable value + tax) - in the month of receipt. * Advances adjusted (against invoices) - in the month of adjustment. * If no separate invoice was raised at advance stage, still show advances under HSN (tax paid on it creates liability). 🔄 Example Let's say: * Ad....
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....vance received for service under HSN 9985 = Rs.50,000 * Tax charged = 18% = Rs.9,000 Then: * Table 11A: Rs.50,000 - advance * Table 12 (HSN 9985): * Taxable Value = Rs.50,000 * IGST/CGST/SGST = Rs.9,000 Similarly, when the final invoice is raised and advance is adjusted: * Table 11B: Rs.50,000 - adjustment * Table 12: Adjusted amount shown again in the month of invoice (you can sho....
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....w reduced advance amount if needed) ✅ Summary Question Answer Should advances in Table 11A/11B be shown in Table 12? ✅ Yes, for accurate tax liability reconciliation What happens if not shown? ❌ Table 12 (HSN Summary) won't match total tax liability Is there legal backing? ✅ Yes - implied via reconciliation requirement and system validations Disclaimer: - Thi....
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....s discussion is only for knowledge enrichment and for any matter cannot be constituted as an Legal Opinion.<br> Discussion Forum - Knowledge Sharing ....