GST ON ADVANCE RECIEPTS

[OM PRAKASH]

PLEASE UPDATE ......IT IS NECESSARY TO DEPOSITED TAX ON ADVANCE PAYMENT

[So B]

In case of supply of service ,supplier is liable to pay tax on the amount of advance is received.However in case of supply of goods ,supplier is not required to pay tax on amount of advance received.

[PAWAN KUMAR]

Dear Sir,

as per my view, no need to pay tax on advance receipt in case of goods, however in case of services tax is to be paid.

[Ganeshan Kalyani]

GST on advance against goods is not liable to be paid vide Notification No. 66/2017 – Central Tax.

GST is payable by the supplier is he receives advance payment.

AI Summary

GST on advance payments: advances for services are taxable on receipt, while advances for goods are exempt by notification.
Advances for supplies of services are taxable on receipt and the supplier must discharge GST when such advances are received. Advances for supplies of goods are not taxable where the exemption in Notification No. 66/2017 - Central Tax applies; therefore suppliers need not pay GST on advances for goods. In practice, suppliers bear tax liability upon receipt of any advance that is taxable.