ITC in respect of Advance Payment prior to GST

[Alisha Maini]

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

AI Summary

Clarification on GST: No tax on advances before July 1, 2017, tax payable on advances after this date. A participant inquired about the treatment of advance payments received before the GST transition date of July 1, 2017, and whether Input Tax Credit (ITC) could be claimed on such payments. The first response clarified that tax must be paid on advances received on or after July 1, 2017, for future supplies of taxable goods, but there are no tax implications for advances received before this date. Another participant agreed with this interpretation.