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Advances received

mukund (manager) (481 Points)

07 June 2018

My client is Builder and started the business in May 18, he received some advance, and the project is undergoing so is it necessary to show the advance received in gstr 1 and gstr 3b and whether he has to pay any liability arising due to advance received?

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 07 June 2018

YES HAVE TO PAY TAX ON ADVANCE RECEIVED

AND SHOWN IN GSTR_3B AND PAY TAX

AND ALSO SHOW IN GSTR_1

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mukund (manager) (481 Points)
Replied 07 June 2018

Thanks Sir , but sorry to inform you that according to notifications No 40/2017 DT 13/10/2017 and No 40/2017 DT 15/11/2017 I think there is no need to pay GST on advance received, , so please go through it and confirm and if possible confirm me also .
Again Thanks

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Vinod Babu (24191 Points)
Replied 07 June 2018

Implications of the recent changes

1. GST will not be payable at time of receipt of advance in case of outward supply of goods by registered persons having turnover less than 1.50 Crore during last FY, w.e.f. 13thOctober 2017. However GST on advance is payable if advance received during period 01/07/2017 to 12/10/2017.

2. In case of Persons having turnover more than 1.50 crore during last FY, GST is payable on advance received on outward supply of Goods, if advance is received during the period 01/07/2017 to 14/11/2017. No GST is payable on advance if it is received on or after 15/11/2017.

3. This relief is not available on outward supply of services. GST is payable on advance received in case of outward supply of services.

4. This relief is not available if tax is payable on reverse charge. In case of reverse charge, GST will be payable at time of payment, if payment is made before receipt of goods

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