TaxTMI 
TaxTMI 
Can we adjust GST Liability on advance received from customers against ITC available during the month or we have to make cash payment only like RCM.
GST LIABILITY AGAINST ADVANCE RECEIVED FROM CUSTOMERS
14 Oct 2017 
3 Replies 
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GST liability on advances can be discharged using input tax credit where available, subject to invoicing and adjustment.
GST liability on advances received may be discharged by utilising available input tax credit; there is no prohibition against such adjustment. The supplier must issue a tax invoice incorporating the transaction value and applicable GST, and adjust the advance payment and the GST liability in that invoice. (AI Summary)
GST liability on advances received may be discharged by utilising available input tax credit; there is no prohibition against such adjustment. The supplier must issue a tax invoice incorporating the transaction value and applicable GST, and adjust the advance payment and the GST liability in that invoice. (AI Summary)