GST on Advance received from Customer

[GOPAL CHOWDHURY]

Dear all,

As Ministry has issued Notification No.66/2017-CT dated.15.11.2017 and I have seen here it was issued granting exemption for GST on advances received by the tax payers on goods not on service who not availed for composition scheme.

In this regard can any one kindly clarify me the Notification as I still can't understand is the notification issued for the tax payers to charge the rate of tax changed on certain commondity which comes into effect from the date of issue of the Notification as the provision regarding billing on the same is provided U/s 14 of the CGST Act, 2017 as provided under the Notification or else its allowing exemption from payment of tax on advances received by the tax payers.

Kindly let me know.

AI Summary

GST on advances: suppliers of goods (non-composition) taxed at invoicing time, not on receipt.
Notification No.66/2017-CT exempts registered persons (other than composition dealers) from payment of central tax on advances received for the supply of goods, while advances for services remain taxable. The notification refers to the time of supply under section 12(2)(a), so tax is payable on the date of invoice or the last date for issuing an invoice under section 31(1), not upon receipt of advance; advance receipt and refund voucher formalities continue.