Dear Friends
Proviso to rule 50 of CGST Rules says
Provided that where at the time of receipt of advance,-
My question is that when its becomes known that the supply was actually Intra-state or when it becomes known that the tax rate was actually 12%, then what needs to be done by the supplier and the recipient?
regards
shivani
For Receiver
No ITC is allowed on advance payment to suppliers , ITC is aloowed only on receipt of Tax Invoice
For Supplier
GST is to be paid advance amount received , if there is any cange in rate of tax it is to dealt with as per provisions of GST
as Inter state or Intra state is conern it is more clear at the time of supply or receipt of advance
Dear rakesh
my question is that supplier at the time of receipt by following the mentioned proviso deposited IGST 18% to the governemnet..
bu later the actual supply that was materialised in pursuance of this advance was an intra state supply and the rate of goods/services supplies was 12%. so supplier should have deposited CGST/SGST 12% but what he did was IGST 18%.
what will supplier do now
regards
So in this case please cancell the original invoice issued under IGST and issue fresh invoice charging CGST and SGST for next months return
GST is to be paid advance amount received if there is any change in the rate of tax it is to deal with as per provisions of GST.https://registerexperts.com
@ Rakesh
No invoice is issued in GST at the time of receipt. only a receipt voucher is issued so question of cancelling doesnt arise.
Query remains open !
CAclubindia
