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GST ON ADVANCED RECEIVED.

vivek kumar (ariticle) (45 Points)

15 September 2017

hii

My company received full payment as advanced in August 2017 and service to be rendered in Nov 2017.

Advanced Received Rs.300000

So questions is can we raised a invoice in August of Rs.300000 or

we have to issue a adavance receipt.

please suggest.

Thanks.

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 15 September 2017

What is your exact service...?

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vivek kumar (ariticle) (45 Points)
Replied 15 September 2017

providing farm house for marriage function.

CA Shashikumar PN (Consultant - Taxation) (264 Points)
Replied 15 September 2017

You can issue Invoice as section 31 uses the word before or after provision of services but within prescribed period.

vivek kumar (ariticle) (45 Points)
Replied 15 September 2017

section 31 of CGST ACT ?

Sumati Bengani (1) (1570 Points)
Replied 15 September 2017

As per Rule 47 of CGST Rules 2017, the invoice need be issued within 30 days form supply of service.

Sec 31(2) says " A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice..."

The prescribe period is 30 days in case of supply of services.

Further, as per Rule 50 of CGST Rules, while receiving advance payment you must issue an "Receipt Voucher" (the particulars are mentioned in said rule).

In your case, as the advance is recived in August and service is likely to be provided in Nov 2017, then you should issue a 'reciept voucher' to party making advance payment and after service is provided, issue a tax invoice. Further, if the rate of GST on said service is not known at the time of receipt of advanec then pay GST @ 18%.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 15 September 2017

Originally posted by : vivek kumar
	providing farm house for marriage function.

You ll be create and give Receipt Voucher as per GST. Also you pay the Tax on Advance related on before August return (Also advance related tax payments on or before the month end).

Finally issue a tax invoice on Nov-17 also you ll be show the advance related details in that Invoice. then, When you file the Nov-17 return then you ll be less the tax liability or Adjust your any libility to the advance tax...

vivek kumar (ariticle) (45 Points)
Replied 15 September 2017

Thanks everyone for your valuable feedback.

CA Shashikumar PN (Consultant - Taxation) (264 Points)
Replied 15 September 2017

Yes i agree as section 31(3) of cgst Act starts with notwithstanding clause. So receipt voucher needs to be issued for advances received as per section 31(3)(d).