TaxTMI 
TaxTMI 
We have recd some advance from customer against which we will make supply after 1st July (implementation of GST). What will be the tax applicability under GST for the same.
ADVANCE RECD PRIOR TO GST
19 Jun 2017 
6 Replies 
14707 Views Asked by
Taxability of advances: advances received are taxable under GST and form part of the supply value.
Under GST, advances form part of the taxable value of the later supply and GST is chargeable on advances under point-of-taxation rules; pre GST practice treated advances for goods as not attracting duty at receipt and service tax paid on advances may be adjusted when invoicing, so transitional treatment and invoicing must account for set-off and inclusion of advances in supply value. (AI Summary)
Under GST, advances form part of the taxable value of the later supply and GST is chargeable on advances under point-of-taxation rules; pre GST practice treated advances for goods as not attracting duty at receipt and service tax paid on advances may be adjusted when invoicing, so transitional treatment and invoicing must account for set-off and inclusion of advances in supply value. (AI Summary)