GST on advance payment received from customer

The advance payments received from the customers might need to be reported in GSTR-1 along with GST Rates.

Process of GST calculation on advance payment from customer has been explained in this document.

Choose the icon, enter General Journal or Bank Payment Voucher or Cash Receipt Voucher, and then choose the related link.
Select Customer in account type and select relevant Customer Code, GST customer type and registration number shouldn't be blank on customer master.
Select G/L Account or Bank Account in balancing account type, and select the cash or bank account.
GST on Advance Payment field needs to be activated in General Journal Line for computation of GST on Advance Payment. In addition, GST Group code and GST Place of Supply are to be entered for computation of GST.

For example, advance payment received from customer for INR 10,000 on which 18% GST (i.e. 9% CGST and 9% SGST/UTGST) has to be charged.

GL Entries for advance payment received from customer, as follows:

Particulars	Amount
Bank Account	10,000
CGST Payable (Interim) Account	763
SGST/UTGST Payable (Interim) Account	763
CGST Payable Account	-763
SGST/UTGST Payable Account	-763
Customer Account	-10000

Reversal of advance payment received from customer

If the customer advance needs to be corrected or the entry is wrongly posted, in such a case the entry can be reversed and new entry can be created.

Reversal GL Entries for advance payment received from customer, as follows:

Particulars	Amount
Customer Account	10000
CGST Payable Account	763
SGST/UTGST Payable Account	763
CGST Payable (Interim) Account	-763
SGST/UTGST Payable (Interim) Account	-763
Bank Account	-10,000

In case of Inter-State Advance Payment, IGST will be calculated.