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Advance for Materials

Sumit Chanani (95 Points)

27 July 2018

Do we need to take Advance Receipt Voucher from Vendor for Paying Advance for Materials under GST Regime.....?

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5 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 27 July 2018

The supplier has to issue a receipt voucher to the person paying advance. The receipt voucher will contain details like amount of advance, the rate of tax applicable, descripttion of goods or services, etc.

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Sumit Chanani (95 Points)
Replied 27 July 2018

but via Notification govt has Exempted GST from Advance of goods because of which I think so no advance receipt voucher needed fot payment

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 27 July 2018

Issue of receipt voucher is optional as advance received for the supply of goods is not subject to GST. The entire amount will be taxed on the issue of the invoice (w.e.f. 15th November 2017).