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GST Calculation on Advance Payment Functionality

Posted on 10-Apr-2023 by Sanjay Yadav

GST can be applied on vendor advance payment. Below is condition on which GST can applied.

  1. GST is not applicable on advance payment for GST group goods.
  2. GST is applicable on advance payment on service under RCM only.

Open Bank Payment voucher page and generate single line payment entry and put GST group code, HSN/SAC code and select Boolean ‘GST on Advance Payment’ true.

Configuring a Bank Payment Voucher in Business Central with the GST on Advance Payment boolean enabled and HSN/SAC codes specified.

Preview Posting 

A preview of the posting ledger in Business Central showing Detailed GST Ledger Entry Information for a vendor advance payment.


G/L Entry

Final G/L entries in Microsoft Dynamics 365 Business Central displaying GST Payable and CGST/SGST Receivable accounts for an advance payment.
 

G/L Entry of Purchase Invoice + posted payment entry application

Posting Date Document Type Document No. G/L Account No. G/L Account Name Description Amount
05-02-2023 Invoice *** 8640 Miscellaneous Invoice 1001 2,000.00
05-02-2023 Invoice *** 5410 5410 Invoice 1001 -
2,000.00
05-02-2023 Invoice *** 2705 SGST Rcvble
Acc (Interim)		 SGST Rcvble
Acc (Interim)		 180.00
05-02-2023 Invoice *** 2706 CGST Rcvble
Acc (Interim)		 CGST Rcvble
Acc (Interim)		 -360.00
05-02-2023 Invoice *** 5986 CGST Payable
Acc (Interim)		 CGST Payable
Acc (Interim)		 180.00
05-02-2023 Invoice *** 2703 CGST Rcvble Acc CGST Rcvble Acc 180.00
05-02-2023 Invoice *** 2705 SGST Rcvble
Acc (Interim)		 SGST Rcvble
Acc (Interim)		 -360.00
05-02-2023 Invoice *** 5985 SGST Payable
Acc (Interim)		 SGST Payable
Acc (Interim)		 180.00
05-02-2023 Invoice *** 2702 SGST Rcvble Acc SGST Rcvble Acc 180.00
05-02-2023 Invoice *** 5985 SGST Payable
Acc(Interim)		 SGST Payable
Acc(Interim)		 -180.00
05-02-2023 Invoice *** 2706 CGST Rcvble
Acc(Interim)		 CGST Rcvble
Acc(Interim)		 180.00
05-02-2023 Invoice *** 5986 CGST Payable
Acc(Interim)		 CGST Payable
Acc(Interim)		 -180.00

 

Sum of Amount    
G/L Account No. G/L Account Name Total
2702 SGST Rcvble Acc 180
 2703 CGST Rcvble Acc 180
2705 SGST Rcvble Acc(Interim) -180
 2706 CGST Rcvble Acc(Interim) -180
5410 Vendors, Domestic -
2000
5985 SGST Payable Acc(Interim) 0
5986 CGST Payable Acc(Interim) 0
8640 Miscellaneous 2000
Grand Total   0

 

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