GST on advance paid in June-17

[Asked by Guest]

If we have paid advance to URD of ₹ 50,000/-in the month of June-17, recd invoice in the month of July-17 for ₹ 75000/-,we have to pay GST on 75000/- or balance amt of ₹ 25,000/-?

please advise.

[Ganeshan Kalyani]

In my view, GST is applicable on 75K.

[Rajagopalan Ranganathan]

Madam,

If you had paid service tax on the advance amount of ₹ 50,000/- and included the same in the return for the period April 2017 to June 2017 you need not pay gst again on the amount. If not, you have to pay gst on the entire amount of ₹ 75,000/-.

we have not paid service tax on the same. actually he is URD. We never paid service tax on labour services availed from URD.

[KASTURI SETHI]

Whether advance was paid against taxable or exempted supply ? That has to be kept in mind while arriving at any decision.

[Vijay kumar]

Mr. Mayuri Shete,

In this case, time of supply in terms of Section 13 of the CGST Act, 2017 falls after 1.7.2017, presuming it to be supply of service and presuming the invoice has been issued within 30 days (Section 31(2) of CGST Act r/w Rule 47 of GSTR). Accordingly, GST is liable to be paid on ₹ 75,000/-.

[DR.MARIAPPAN GOVINDARAJAN]

The invoice is received in the month of July 2017. When did the supply take place?

its a labour charges invoice. labour contractor is not having GST registration. Construction work done for the month of June-17 against which advance paid in June-17 for ₹ 50,000/- & remaining amount paid in July-17 after receiving invoice.

AI Summary

GST on advances: time of supply and invoice timing determine liability for pre-GST payments to unregistered suppliers.
If an advance paid pre-GST was not subject to service tax and the invoice and time of supply fall after GST commenced, GST is argued to apply on the full invoiced amount; prior payment of service tax reported in transitional returns would prevent duplicate taxation. The supply's taxable or exempt character and the supplier's registration status are material to the determination.