We conduct a 6 months course twice in every year. The duration of the course is Jan to June and July to December. The fees is paid by the student in the first month of the course.
The issue is mismatch of the total outward supply as per GSTR return and as per books of accounts. The reason is due to difference in accounting & GST principle. As per accounting standard revenue for Jan to June duration course is split in two financial year. The course fee for 3 months i,e from Jan to March is realised in previous FY and the advance received for 3 months i.e, April to June is realised in the next FY.
This is more of an accounting adjustment rather than GST adjustment. As per the law, you shall pay complete GST as soon as you have received the advance.
The general rule for time of supply for services is earliest of the following –
1. Date of issue of invoice
2. Date of receipt of payment/advance*
3. Date on which invoice should be issued
The second point above is receipt of advance. This means that if the advance is received before the issue of the invoice the time of supply would be the date of receipt of advance.
Thus taxpayer receiving advance must pay GST on the money received.
Treatment in accounts, however, shall continue as per the accounting standards. Here you shall provide GST paid on advance as a current asset