Understanding Advance Payments for GST
When a customer makes an advance payment to the supplier for procuring goods and services, GST is liable to be paid on such an advance payment. This is the advance amount remitted by a customer prior to a transaction.
You, as the supplier, must calculate the GST for the advance payment received from the customer. For interstate (where the ship-from state and sold-to state are different) and export (where the ship-from country and sold-to country are different) transactions, you calculate the IGST and GST Cess. For intrastate transactions (where the ship-from state and sold-to state are the same), you calculate the CGST, SGST, and GST Cess. When you create the sales invoice, you must offset the advance GST paid with the GST of the sales invoice.
In the JD Edwards EnterpriseOne system, you complete these tasks to process advance payments for goods and services in the GST regime:
Create unapplied receipts for advance payments using the Standard Receipts Entry program (P03B102).
The unapplied receipts are standard receipts created for advance payments received, and do not have matching invoices.
Calculate GST for the advance amounts received.
You use the GST Advance Payment for Goods program (P75I827) to calculate GST for advance payment of goods, and GST Advance Payment for Services program (P75I829) to calculate GST for advance payment of services.
Match and offset the receipts against the invoices using the Matching Advance Payment With Sales Invoice program (P75I828) for goods and GST Matching Advance Payment With AR Invoice program (P75I840) for services.