Advance on supply of goods

[Guest]

Advance received on supply of goods in not te be taxed under GST, this notification comes under CGST Act only.

Why this is not come under IGST Act?

[Nash Industries I Pvt Ltd]

it is for all (CGST,SGST, IGST, UTGST). No tax on advances received for the supply of goods is to be paid. Advance received for supply of services - tax is payable.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

No GST on advance received from customer. However, a composition dealer is still liable to pay GST on advance. Also advance on service is also liable to GST.

[CSSANJAY MALHOTRA]

Please go through Section 20 of IGST Act which refers to Misc. provisions, wherein it has been specified that the various provisions of CGST Act would be applicable for IGST.

Section 20(iii) of IGST Act has mention of "Time and Place of Supply" which means that the provisions as applicable under CGST Act is applicable to IGST.

Hope above clarifies your doubts.

Section 20 of IGST Act . Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,––
(i) scope of supply;
(ii) composite supply and mixed supply;
(iii) time and value of supply;
(iv) input tax credit;
(v) registration;
(vi) tax invoice, credit and debit notes;
(vii) accounts and records;
(viii) returns, other than late fee;
(ix) payment of tax;
(x) tax deduction at source;
(xi) collection of tax at source;
(xii) assessment;
(xiii) refunds;
(xiv) audit;
(xv) inspection, search, seizure and arrest;
(xvi) demands and recovery;
(xvii) liability to pay in certain cases;
(xviii) advance ruling;
(xix) appeals and revision;
(xx) presumption as to documents;
(xxi) offences and penalties;
(xxii) job work;
(xxiii) electronic commerce;
(xxiv) transitional provisions; and
(xxv) miscellaneous provisions including the provisions relating to the
imposition of interest and penalty,
shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act:

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji,

Sir, Thanks for enrichment of my knowledge.

AI Summary

GST advance payment treatment: advances for goods not taxable, while advances for services and composition dealers are taxable. Advance receipts for supply of goods are not subject to GST at receipt, while advances for services are taxable; composition dealers must still account for GST on advances. The CGST Act provisions, including time and value of supply, invoicing and payment obligations, apply mutatis mutandis to IGST under the IGST Act, requiring consistent treatment of advances under the CGST framework extended to integrated tax.