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Advance Refund to Customer

All QuestionsCategory: GST CompliancesAdvance Refund to Customer
Profile photo of Jarviz SuratwalaJarviz Suratwala asked 1 week ago

I have received Rs. 100000 advance against property as booking amount with GST. Now customer wants to cancel booking. Where to show this entry in GSTR 1 & GSTR 3B

2 Answers
Profile photo of Neeraj RohillaNeeraj Rohilla Staff answered 1 week ago

Under the Provisions of section 34(1) a supplier is eligible to issue a credit note in following cases:
“Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.”
Although as per literal meaning of this provision in case of return of advance in case of services credit note cannot be issued as only goods are covered in that part. But purposive interpretation will be to give the supplier the right to issue a credit in case of the reduction in value of any supply whether by reason of deficiency or discount or return.
Thus in this case supplier will issue a credit note and will declare it in his GSTR 3b GSTR 1.

Profile photo of Jarviz SuratwalaJarviz Suratwala answered 1 week ago

Thank You Sir.
This transaction is B2C, So I have to declare in credit note (Unregistered) but i am not finding option for B2C there. Two options are related to Exports and third is for B2C large given in GSTR1 (Table No. 9B).