gst on advances for services

[Ramakrishnan Seshadri]

Dear Sir,

We have received a professional invoice for design service .

In that invoice they have claimed an advance.

For that advance they have charged gst.

Whether gst has to be paid on advances for services.

Experts please confirm.

Thanks & Regards,

S.Ramakrishnan

[KASTURI SETHI]

Yes. GST is payable on advance in respect of services.

[YAGAY andSUN]

Advance paid on goods are only exempted from payment of GST.

[Ganeshan Kalyani]

Yes , GST is payable on advance against service. Also, take note that if advance and invoice is received in the same month then no need to pay GST on advance.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.

AI Summary

GST on advances for services triggers tax at receipt; advances for goods exempt, same-month billing may obviate separate tax. GST is payable on receipt of advances for services and must be accounted for by the supplier; advances for goods are treated under an exemption regime. If the advance and the service invoice are raised in the same month, separate tax accounting on the advance may not be required, avoiding duplicate tax treatment for the same supply.