GST on Advance received from Customer

[raja raja]

Our company received advance against services

Advanced received 9,80,000/-

Tds 2% recovered 20,000/-

Above case we have to pay gst on 9,80,0000(980000*18/118=149492) or 10,00,000( 1000000*18/118=152543)

Please advice me

Thanks in advance

[Ganeshan Kalyani]

on ₹ 10 lacs.

[DR.MARIAPPAN GOVINDARAJAN]

GST is to be leviable on ₹ 10,00,000/-

[Ravikumar muthusamy]

is GST payable on advance also?

[Ganeshan Kalyani]

on service- - yes

on goods - no.

[Ravikumar muthusamy]

I request reconfirmation of gst liability on advances received for services too.

[Ganeshan Kalyani]

already replied sir. tax is payable on receipt of advance against service by the service provider. thanks .

[rajkumar shukla]

As per section 2(31) of cgst, a deposit given in respect of supply of goods and services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for such supply. Thus advances which are appropriated will be considered as supply and consequently gst is payable.

[Praveen Nair]

Advance Payment:

As per the provisions of Section 31(3)(d), read with Section 12(2)(b) of the CGST Act, 2017 as applicable to SGST, UTGST & IGST Act, 2017, receipt of Advance payment, attracts Tax, at appropriate rate, the hands of the Supplier (Forward Charge) or Recipient (Reverse Charge) of Goods or Services or both.

Notification No. 66/2017-Central Tax dtd. 15.11.2017 for the time being has kept the GST applicability on Advance at Abeyance on Supply of Goods & Services upto 31.03.2018 and accordingly, when Advance Payment is received by the Supplier of Services (where tax is payable under Forward charge) or such Advance Payment is made by the Recipient of Services (where tax is payable under Reverse Charge), Advance payment would Not attract Tax under GST Law, in respect of Supply of Goods or Services.

[rajkumar shukla]

Yes.post poned but does it apply to services as well? and postponed upto 31.03.18 sure?

AI Summary

GST on advance payments: receipt can attract tax as consideration, though applicability may be temporarily suspended by notification.
Receipt of an advance for services constitutes a taxable event that attracts GST in the hands of the supplier (or recipient under reverse charge) at the appropriate rate; a deposit is not payment unless appropriated, but appropriated advances are treated as consideration and taxable. However, an administrative notification temporarily suspended GST applicability on advances for the specified suspension period.