Advance Received

[Kamdev Senapati]

Advance received one year back from one scrap merchant and the same has reflected on our books of accounts. Regular basis the scrap merchant taken the scrap and paid the amount of each sales.

My Quarry is Since the advance received before GST, will GST attract for the same or not ??.

Please suggest...

AI Summary

Point of taxation determines GST liability where time of supply occurs after implementation for pre-implementation receipts.
Point of taxation governs GST on pre-implementation receipts: if the time of supply, as determined by invoice and point-of-taxation rules, occurs after GST commencement, the earlier receipt is subject to GST. Alternatively, if the earlier receipt is properly characterised and evidenced as a deposit rather than an advance for supply, it may not attract GST; examination of agreements and accounting classification is necessary.