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TMI BlogWhether HSN summary be adjusted for Advance receivedX X X X Extracts X X X X X X X X Extracts X X X X ..... Whether HSN summary be adjusted for Advance received X X X X Extracts X X X X X X X X Extracts X X X X ..... vance 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 rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipts (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 value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipts 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 dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 Complianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Approach * 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). 🔄 Exa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mple Let's say: * Advance 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 aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 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 requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement and system validations
Disclaimer: - This discussion is only for knowledge enrichment and for any matter cannot be constituted as an Legal Opinion. X X X X Extracts X X X X X X X X Extracts X X X X
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