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Advance Receipts

Kunal Pansari (Accountant) (1037 Points)

20 July 2017

Suppose, I deal with items of various GST rates. I receive an advance of Rs. 100000 from a customer but he has not finalized the items for his purchase. Now, as I don't know which tax rate items is to be sold, how do I calculate and pay tax on that advance?

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5 Replies

upasana gupta (Finance Professional) (3931 Points)
Replied 20 July 2017

if anyone paid advance before the supply of goods or services will have to pay GST on it. Ex. If a person has given order for buying stationery amounting to Rs. 10 Lakhs and gave advance of Rs. 5 Lakhs, then he have to pay GST on that advance to the supplier at that time only.

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Kunal Pansari (Accountant) (1037 Points)
Replied 20 July 2017

Sorry Upasana Gupta but my doubt has not been cleared

natarajan (SM - Audit & Taxation) (156 Points)
Replied 20 July 2017

dear kunal,

toy might have received a purchase order breed on which you could decide and pay..

natarajan

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 July 2017

Dear Kunal Pansari...
Why you can get doubt...?! Any confusion for it....? Your are one of the Active Member in CCI....!!!

If you can't finalize the items. You can prepare which is highest rate of item ll supply to customer. At the rate of amount you pay....