SIR IS GST PAYABLE ON ADVANCE RECEIPT AGAINST THE FUTURE SALES
7 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 03 July 2018
For the supply of goods advance received is not subject to GST. The entire amount will be taxed on the issue of the invoice (w.e.f. 15th November 2017).
The GST law provides for payment of GST at the time of receipt of advance towards supply of goods or services. Initially, notification no. 40/2017-Central Tax dated 13, 2017 was issued to remove the requirement of payment of GST on advance receipts towards supply of goods, for persons having turnover of less than INR 15 million in a year. VideNotification no. 66/2017-Central Tax dated 15 November, 2017, this relaxation has been extended to all persons, except persons opting to pay GST under composition scheme. It should be noted that this relaxation is applicable only on the advances received post 15 November, 2017 for supply of goods. Post this notification, the time of supply for goods would be the date of issue of invoice by the supplier (or the due date, by when the invoice needs to be issued). This would apply even in case of a change in rate of tax.
The GST law provides for payment of GST at the time of receipt of advance towards supply of goods or services. Initially, notification no. 40/2017-Central Tax dated 13, 2017 was issued to remove the requirement of payment of GST on advance receipts towards supply of goods, for persons having turnover of less than INR 15 million in a year. VideNotification no. 66/2017-Central Tax dated 15 November, 2017, this relaxation has been extended to all persons, except persons opting to pay GST under composition scheme. It should be noted that this relaxation is applicable only on the advances received post 15 November, 2017 for supply of goods. Post this notification, the time of supply for goods would be the date of issue of invoice by the supplier (or the due date, by when the invoice needs to be issued). This would apply even in case of a change in rate of tax.
CA Shivam Arora
(Chartered Accountant)
(2414 Points)
Replied 03 July 2018
Not required to pay GST on advance received for outward supply of goods -Notification 66/2017.
But on advance received for outward supply of service you have to pay tax.
Avatar Kumar
(CA)
(24 Points)
Replied 23 November 2018
GST on advance payment received? Yes, An advance which is received must be considered inclusive of GST.
Junior Accts
(trainee)
(14 Points)
Replied 15 March 2019
How this amount is adjusted after invoicing the same to the customer?
Vasu Sunkara
(2 Points)
Replied 19 March 2021
is gst applicable on rental advance received before gst
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