TaxTMI 
TaxTMI 
PLEASE UPDATE ......IT IS NECESSARY TO DEPOSITED TAX ON ADVANCE PAYMENT
GST ON ADVANCE RECIEPTS
12 Dec 2017 
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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. (AI Summary)
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. (AI Summary)