Gst on advance receipt

This query is : Resolved

Rishabh Mishra (Querist)
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09 May 2018 Dear Sir,
Please suggest me treatment in GST for the following case.
We have received advance payment of Rs.3,95,000/- from our customer on 28-Sept-2017. & our turnover is below 1.5 crore. As per recommendations made by the GST Council in the 22nd meeting at New Delhi on 6th
October, 2017, it is said that the taxpayers whose aggregate turnover is upto 1.5 crore, need not pay gst on advance receipts but have to pay on supply of Goods.
My query is :- Whether this recommendation, published on 06-Oct-2017 will be applicable to advance receipts on 28-Sept-2017 or we have to pay GST with interest & penalties.
Please help me soon.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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09 May 2018 GST is payable on advances received prior to 13th October 2017 for both supply of goods or services irrespective of turnover. In your case the advance is received prior to 13th October 2017, therefore GST is payable along with interest.
In case where the turnover is less than 1.5 cr, no GST on receipt of advance for supply of goods, with effect from 13th October 2017 to 15th November 2017,
Central Government issued Notification No. 66/2017 – Central Tax, dated 15/11/2017, and extended the benefit to all taxable persons (other than Composition dealers). Now all taxable persons are required to pay GST on outward supply of Goods at time of issue of invoice or the last date on which they are required to issue the Invoice. No GST on receipt of advance for supply of goods. Where as GST is payable on advance received for supply of services.

Rishabh Mishra

Rishabh Mishra (Querist)
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09 May 2018 Greetings!!, Padmasri Ji,
So we have to pay interest upto the date of this notification comes into force.(i.e. from 28-Sept to 13-Oct).
But this tax is payable on 20-Oct-2017 & notification comes on 13-Oct-17. Still we have to pay interest on GST.
Please help.

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RAJA P M

RAJA P M (Expert)
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30 May 2018 Sorry for the different views in here...

As per above query GST not applicable for the advance receipts if Turn Over less than 1.5cr on date of receipt 28/09/2017. On or before 12th October GST is not applicable for advance receipts if Turn Over less than 1.5cr in any manner (Goods or Services).

From 13th October the act is changed (as per noti : 66/2017) as GST applicable for advance receipts against supply of services. Also it's not applicable for supply of Goods...