When a person receives advance amount, he has to pay GST if the supply is not made in the same month of receipt. Now the question is: I receive cash ₹ 50,000.00 advance for a product with a GST of 18%. Whether I should pay GST for ₹ 50,000.00 or should i split the turnover by reverse working and tax to be paid for ₹ 42,373.00. What the relevant CGST/SGST provision says? Earlier in Service Tax regime, when advance amount is received we used to pay for full value of ₹ 50K.
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GST on Advances: Pay Full or Net Amount? Consensus Says Treat Advance as Cum Tax Value for GST Calculation. A discussion on the Goods and Services Tax (GST) addresses the issue of whether GST should be paid on the full advance amount received or only on the net amount after reverse calculation. The original query involves a 50,000 advance with an 18% GST. Responses suggest using a reverse calculation to determine GST liability and issuing an advance receipt voucher indicating GST details. Another response mentions using an inclusive method for calculating GST within the advance amount. The consensus is that the advance should be treated as a cum tax value for GST purposes. (AI Summary)
TaxTMI 
TaxTMI 
