Advance Receipts from Customer under GST in TallyPrime: 7 Steps

Feb 17, 2024

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Recording an advance receipt from a customer under GST in TallyPrime involves specific steps to ensure accurate tax treatment and reporting.

Here’s how to do it:

Table of Contents

1. Identify Advance Type:

1. Regular Advance:

Received before any supply of goods or services.

2. Advance for Specific Supply:

Received against a confirmed order for specific goods or services.

2. Create Receipt Voucher:

Go to Gateway of Tally > Accounting Vouchers > F6: Receipt.

3. Enter Basic Information:

Date: Enter the date of advance receipt.
Party A/c Name: Select the customer’s ledger account.
Reference No.: (Optional) Provide an internal reference number.

4. Add Advance Amount:

Choose the appropriate sales ledger depending on the advance type:
- Regular Advance: Use a dedicated “Advance Received” ledger.
- Advance for Specific Supply: Use the sales ledger corresponding to the intended supply.
Enter the advance amount (excluding taxes).

5. Set Tax Details (Optional):

Click Enter to access tax details.
For regular advances, you can Enable Tax Details and set Taxability to “Nil Rated”. This creates an indicative tax value but won’t impact your GST return.
For advances for specific supplies, only enable tax details if the supply tax rate is known. Set the appropriate taxability (SGST, CGST, IGST) based on the intended supply nature and place of supply.

6. Mark Voucher as Advance (Optional):

Press Alt+J: Stat Adjustment.
Select Nature of Receipt as “Advance Receipt”. This helps track advances separately.

7. Save and Print:

Press Ctrl+A to save the voucher.
Consider printing the receipt voucher for documentation purposes.

Additional Notes for Advance Receipts from Customer under GST in TallyPrime:

Maintain proper documentation of invoices, advance receipts, and supporting documents.
Reconcile your GST returns with TallyPrime data regularly for accuracy.

Important Tips:

Consult a qualified accountant for specific guidance on advance receipt treatment, taxability, and documentation requirements based on your location and industry.
Understand the difference between regular and specific supply advances and record them accordingly.
Consider setting up dedicated sales ledgers for different advance types for easier identification and reporting.
Remember that advance receipts might impact your GSTR-1 and GSTR-3B filing based on your specific situation.

By following these steps and seeking professional advice, you can effectively record advance receipts from customers under GST in TallyPrime, ensuring accurate tax calculations and compliance with regulations.

Remember, proper record-keeping and adherence to regulations are crucial for businesses managing GST effectively.