GST on advance

[Murari Agrawal]

Dear Experts - When we receive advance against supply, the amount received to be treated as net of tax or including tax. If the goods are supplied within same month, how to show tax in the invoice. If the goods are supplied in subsequent month, how to adjust the tax/ show in Invoice. Thanks.

[MUKUND THAKKAR]

GST is applicable in case of advance received against supply or services. in your situation please refer following

Adavnce received in month of July-2017	1,00,000
Goods supply in the same month (July)	50,000
Balance advance with you	50,000
GST PAYABLE ON BALANCE ADVANCE WITH YOU	50,000

[Narendra Soni]

Dear Sir,

If advance is received against an export order, which will be exported in next month under bond/LUT.Kindly confirm Is tax payable in the month of receipt of advance against export without payment of IGST.

[MUKUND THAKKAR]

Dear soniji.

No need to pay the IGST if advance received for export. if you want to clear under LUT or Bond. you are exporting the goods not Taxes.

AI Summary

GST on advances: tax applies on retained advance; export advances under bond/LUT exempt from IGST. GST is chargeable on advances received for supply of goods or services; if part of the advance is discharged by supply within the same month, the remaining advance retained is treated as the taxable amount with GST payable on that balance. For export transactions to be effected under bond or Letter of Undertaking, IGST is advisedly not payable on receipt of advance.