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Advance Amount Received

Pabitra Dakua (Internal Auditor & Accounts writer) (22 Points)

03 March 2021

Is it compulsory to pay GST on advance Amount received

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2 Replies

V SUBRAMANIAM (502 Points)
Replied 03 March 2021

If it is for service then gst must.

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 March 2021

Yes gst is leivable on advance amount received
You have to calculate tax on advance and pay tax while filing the return for the month.

The advance received should be grossed up. This means that advance received is considered inclusive of GST.

When the rate of tax cannot be determined during receipt of advance GST @ 18% has to be charged.

Also if the point of sale cannot be ascertained the advance is considered as interstate supply and IGST has to be paid.