Advance on supply of goods

[Devika agarwal]

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?

AI Summary

No GST on Goods Advances Under CGST, SGST, IGST, UTGST; Services and Composition Dealers Taxable. See Section 20 IGST Act. A discussion on a forum addresses whether advances received for the supply of goods are taxable under the Goods and Services Tax (GST) framework. It is clarified that no GST is payable on advances for goods under the Central GST (CGST), State GST (SGST), Integrated GST (IGST), and Union Territory GST (UTGST) Acts. However, advances for services are taxable. A composition dealer must pay GST on advances. Section 20 of the IGST Act indicates that provisions of the CGST Act apply to IGST, clarifying the applicability of GST rules across different tax categories.