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

AI Summary

GST Must Be Calculated on Full Service Advance of 10,00,000 as per CGST Act; Goods Exemption Not Applicable A discussion on a forum addressed the Goods and Services Tax (GST) implications on an advance payment of 9,80,000 received by a company for services. The main question was whether GST should be calculated on 9,80,000 or 10,00,000. Several participants confirmed that GST is applicable on the full amount of 10,00,000. It was clarified that GST is payable on advances for services, not goods. References were made to specific sections of the CGST Act, and a notification indicated that GST on advances for goods was temporarily suspended until March 31, 2018, but the applicability to services was questioned.