ITC in respect of Advance Payment prior to GST

[Asked by Guest]

Hello sir,

Please let me know what would be the treatment of advance payment already received as on transition date i.e. July 1, 2017.

If ITC on the same is claimable, can you tell me which Rule or Act says it and what would be the procedure to claim it.

Thanks

[Ganeshan Kalyani]

Advance received on or after 01.07.2017 for future supply of taxable goods, then receiver has to pay tax on such advance amount.

There is no implication for advance already received before 01.07.2017.

[MUKUND THAKKAR]

Agree with Ganeshji view ..

AI Summary

Tax on advance payments: advances for future taxable supplies require tax treatment at receipt, earlier advances remain unaffected.
Advance payments received on or after the GST transition date for future taxable supplies attract a tax liability on the recipient at receipt and tax must be paid on such advances; advances received before the transition date have no implication under the new regime.