Whether HSN summary be adjusted for Advance received, Goods and Services Tax - GST

[Vaishnavi Bubesh]

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 advance receipt & adjustment of advance in HSN summary it will not match with total tax liability as per GSTR-1.

Thanks in advance.

 

Posts / Replies

[YAGAY andSUN]

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 receipts (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 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 receipts 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 tax 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

1. Track all advances received and identify HSN-wise classification.

2. Update Table 12 for:

   • Advances received (HSN + taxable value + tax) — in the month of receipt.

   • Advances adjusted (against invoices) — in the month of adjustment.

3. If no separate invoice was raised at advance stage, still show advances under HSN (tax paid on it creates liability).

🔄 Example

Let’s say:

• Advance received for service under HSN 9985 = ₹50,000

• Tax charged = 18% = ₹9,000

Then:

• Table 11A: ₹50,000 – advance

• Table 12 (HSN 9985):

  • Taxable Value = ₹50,000

  • IGST/CGST/SGST = ₹9,000

Similarly, when the final invoice is raised and advance is adjusted:

• Table 11B: ₹50,000 – adjustment

• Table 12: Adjusted amount shown again in the month of invoice (you can show 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: - This discussion is only for knowledge enrichment and for any matter cannot be constituted as an Legal Opinion.