Adjustment of advance during GST regime

[Guest]

Dear Expert

Please guide me how to adjust advance amount received from Customer on EPC contract during GST regime.Let say we got a EPC contract of INR 1000/- which is divisible contract (consist of supply of INR 800/-+ engineering INR 200/-) & we got a 10% advance on INR 1000/- i.e INR 100+ Service tax on INR 200/- i.e INR 20/- & deposited the st liability to the government.

How to adjust advance amount & its service tax while raising invoice on post GST regime.

Best regards

Parth

[piyush agarwal]

In my view,

The date you will receive advance you need to issue a receipt voucher. Further when you raise Tax invoice you need to show full value of taxable service of ₹ 1000 and need to charge GST @ 18% on 1000 ie 180 less GST adjusted with advance 200. Total (1000+160= 1160)

AI Summary

Advance adjustment under GST: receipt voucher on advance and invoice GST on full contract value with advance tax credit offset. Issue a receipt voucher when receiving an advance. On raising the post-GST tax invoice, show the full taxable contract value and charge GST on that full value; adjust the advance received and the tax collected on that advance against the GST liability arising on the final invoice, rather than reducing the stated taxable value.