In our previous blog Understanding GSTR-2 PART-8, we discussed about filing GSTR-2 with details of ITC received from ISD, TDS, and TCS. In this blog, we will discuss about filing GSTR-2 with  details of advances paid/advance adjusted on account of receipt of supply.

Filing GSTR-2 table 10

consolidated statement of advances

In the above table, the information of advances paid pertaining to reverse charge supplies and the tax paid including adjustments against invoices issued should be reported. You need to furnish the gross amount of advance paid/received along with the place of supply and amount of tax paid.

Broadly, above table is categorized into two parts, PART-1 and PART-2.

PART-1

In Part-1, you need to furnish the details of advance paid/received and adjustment belonging to the current month. This is further classified as 10A and 10B.

10A – Advance amount paid for reverse charge supplies

When recipients make advance payment for supplies on which they are liable to pay tax on reverse charge, they will also have to pay tax on such advance payments. To know more, Please read our blog How to Manage Advance Paid for Supplies Attracting Tax on Reverse Charge

In 10A, you need to report the advance amount paid for reverse charge supplies and amount of tax to be paid on advance payment. The tax amount will be added as output tax liability.

Steps to file GSTR-2 – details of advance amount paid for reverse charge supplies,

1. You need to login to the portal>Returns >Returns Dashboard>Select the Financial Year & Return Filing Period > Click ‘Prepare Online’ under GSTR-2 > click ’10A – Advance amount paid for reverse charge supplies’ as shown below:

gstr-2

2. The ‘10A – Advance amount paid for reverse charge supplies’ page is displayed. Click the ‘ADD DETAILS’ button to add the data.

10a advance amount paid for reverse charge supplies

3. On clicking on ‘ADD DETAILS’, the following details need to be furnished.

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  • In the ‘POS’ field, select the place of supply where the supplies were delivered. For example, if your supplier is within your State and you have paid advance to him, then you will select the place of supply as your own State, as the supplier will be supplying to you from within the same State. In case, your vendor is outside your State, once your vendor supplies goods or services, it will be inter-State supply and select your vendor’s State. Based on the selection of the supply type as to whether it is “inter-state” or “intra-state” and declare the details accordingly. If it is Intra-State, CGST and SGST tax head will be activated. In case of Inter-State, IGST will be available
  • In the ‘Gross Advance Paid’ field against the rates, enter the gross advance paid
  • In the ‘Amount of Tax’ field against the rates, it will be auto-populated based on rate and gross advance paid, but in editable form
  • In the ‘Cess’ field, enter the cess amount
  • Click the ‘SAVE’ button to save the invoice details

You will be directed to the previous page and a message is displayed that data is added, as shown below:
10a advance amount paid

The details added can be edited/deleted using the option available in actions menu.

One the details are added in table 10A, summary of the invoice details such as number of invoices added along with gross advance paid and total tax will reflect in table 10A as shown below:
gstr-2 other details

File GSTR-2 Table 10B – adjustment of advance amount paid earlier for reverse charge supplies

In 10B, you need to report the details of the advance amount on which tax was paid in earlier period but invoice has been received in the current period. For example, advance payment for reverse charge supplies was made on 25th July, 2017 and accordingly, the details were reported in GSTR-2 of July, 2017. In the month of August, 2017, the inward supplies were received against the advance payment in July, 2017. This adjustment needs to be reported in 10B of GSTR-2.

Steps to file GSTR-2 – details of adjustment of advance amount paid earlier for reverse charge supplies.

To provide the details, in GSTR-2 return page, you need to click ‘10B-Adjustment of advance amount paid earlier for reverse charge supplies’ as shown below:
gstr2-other details-10b

The steps and details required to be furnished under 10B are similar to 10A.

PART-2: amendments of information furnished in 10A and 10B

amendments of information furnished in table 10
In the above table, you need to report, if there are any revision of details furnished in 10A and 10B in the earlier return. For the month of July, 2017, this will not be applicable since amendments will occur only after filing GSTR-2 of July and accordingly, this is not activated in the GST portal.

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Yarab A

Author: Yarab A

Yarab is associated with Tally since 2012. In his 7+ years of experience, he has built his expertise in the field of Accounting, Inventory, Compliance and software product for the diverse industry segment. Being a member of ‘Centre of Excellence’ team, he has conducted several knowledge sharing sessions on GST and has written 200+ blogs and articles on GST, UAE VAT, Saudi VAT, Bahrain VAT, iTax in Kenya and Business efficiency.