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Advance paid to contractors GST

Mohan Rao (103 Points)

01 May 2020

we have paid advance to Contractors , shall we pay gst for the amount.

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8 Replies

MARIES (GST Consultant) (219 Points)
Replied 01 May 2020

@ Mohan Rao,

I understand that you have paid an amount to a contractor for supply of service as an ADVANCE. As per section 13 of GST Act, tax has to be paid on receipt of Advance.

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CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 01 May 2020

The person who has received the amount is supposed to pay tax on receipt of advance for provision of service.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 01 May 2020

@ Mr Mohan Rao.,

Is the advance paid against supply of service...?

Is the Contrator registered under GST or not...?

Mohan Rao (103 Points)
Replied 01 May 2020

YES, THE CONTRACTOR HAVE GST NUMBER

Rajkumar Patel (602 Points)
Replied 01 May 2020

It is not your responsibility to pay gst on advance because you are not supplier.

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 01 May 2020

@ Mr Mohan Rao.,

If the Contractor is registered and You are paid advance against supply of service then GST will payable by the Contractor...

You have also responsible for the contractor correctly paid GST to govt. So, Follow the GST paid correctly by the contractor