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
Guidance on Adjusting Advance Payment for EPC Contract Under GST: Issue Receipt Voucher and Charge 18% on INR 1000 An individual sought guidance on adjusting an advance payment received for an EPC contract during the GST regime. The contract was valued at INR 1000, with INR 800 for supply and INR 200 for engineering. They received a 10% advance and paid service tax on the engineering portion. The response advised issuing a receipt voucher upon receiving the advance and, when invoicing, showing the full taxable service value of INR 1000. GST at 18% should be charged on INR 1000, totaling INR 180, with adjustments made for the advance, resulting in a total of INR 1160. (AI Summary)
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