Applicability of GST on advances from foreign buyer

[MohanLal tiwari]

Please advise for applicability of GST on advance payment from foreign buyers. Please consider that we are charging IGST in our Export Invoice while exporting the goods.

AI Summary

GST Not Required on Export Advances; Rule 50 Advises Issuing Advance Receipt Vouchers for Accounting Clarity. A discussion on the applicability of GST on advance payments from foreign buyers highlights that exports are zero-rated supplies, meaning GST is not required on advances. During export, goods can be cleared with or without IGST payment. A query about issuing Advance Receipt Vouchers was addressed, noting that while not explicitly required for exports, issuing them is advisable for proper accounting. Rule 50 of the CGST Rules, 2017 outlines the necessary particulars for such vouchers. Ultimately, issuing a voucher is recommended to avoid procedural lapses, despite the absence of GST implications on advances.