Kalpesh Parab (Finance Executive) (111 Points)
13 March 2023Is it appropriate to pay the full amount, including GST, requested by a vendor as an advance for materials deliverable after a 5-month period?
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 13 March 2023
Contractually you can do so. But liability to pay GST on goods only arises when invoice is issued by supplier.
Kalpesh Parab
(Finance Executive)
(111 Points)
Replied 13 March 2023
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 13 March 2023
Totally reasonable since the supplier is also not liable to pay GST on advance received for goods.
If it would have been advance for services then GST would have been payable.
Kalpesh Parab
(Finance Executive)
(111 Points)
Replied 13 March 2023
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