The first mistake in an Indian SaaS revenue schedule is allocating the gross invoice. Here is an ₹11,80,000 invoice including 18% GST, worked through with the Soluqube engine: remove the GST, allocate the net ₹10,00,000 by relative standalone selling price (SSP), and build the 12-month schedule.
Why GST is excluded
Ind AS 115 paragraph 47 excludes amounts collected on behalf of third parties from the transaction price. Output GST is collected for the government, so ₹1,80,000 is a liability, not revenue. (The US parallel is the ASC 606-10-32-2A election for sales taxes; a US contract carries no GST.)
At invoice:
| Account | Debit | Credit |
|---|---|---|
| Trade receivable | ₹11,80,000 | |
| Deferred revenue (contract liability) | ₹10,00,000 | |
| GST output liability | ₹1,80,000 |
The ₹1,80,000 output GST liability arises on the invoice. It is not spread across the revenue schedule.
The allocation
Onboarding (point in time, SSP ₹1,50,000) and a cloud subscription (ratable, SSP ₹9,00,000), 12 months from April 2026. Total SSP ₹10,50,000.
| Obligation | SSP | Share | Allocated |
|---|---|---|---|
| Onboarding | ₹1,50,000 | 1,50,000 / 10,50,000 | ₹1,42,857.14 |
| Cloud subscription | ₹9,00,000 | 9,00,000 / 10,50,000 | ₹8,57,142.86 (absorbs residual) |
| Total | ₹10,50,000 | ₹10,00,000.00 |
The schedule
| Month | Onboarding | Subscription | Revenue | Deferred |
|---|---|---|---|---|
| Apr 2026 | ₹1,42,857.14 | ₹71,428.57 | ₹2,14,285.71 | ₹7,85,714.29 |
| May 2026 | — | ₹71,428.57 | ₹71,428.57 | ₹7,14,285.72 |
| ... | — | ₹71,428.57 each month | ||
| Feb 2027 | — | ₹71,428.57 | ₹71,428.57 | ₹71,428.59 |
| Mar 2027 | — | ₹71,428.59 | ₹71,428.59 | ₹0.00 (+₹0.02 remainder) |
| Total | ₹10,00,000.00 |
₹8,57,142.86 does not divide into 12 equal paisa amounts, so eleven months take ₹71,428.57 and March 2027 absorbs the ₹0.02 left over.
Scope: GST is handled at invoice only (not a GST return or tax-liability schedule); one term for all obligations; equal monthly amounts; no billing, variable consideration or contract modifications.
