TaxTMI 
TaxTMI 
Im a self employee, my job is to exporting services to outside the India, all my export services fall under 0% GST, Now if i am receiving 100% full advance payment before raising the invoice do i need to pay any GST on advance payment?
Do i need to pay GST on Advance Payment?
19 Aug 2018 
12 Replies 
7698 Views Asked by
GST on advance payments: exporters can use LUT to avoid paying IGST on advance receipts for zero-rated services.
Advances constitute the time of supply and ordinarily create a GST liability at receipt; suppliers of services are required to account for GST on advances. Exports of services are zero-rated, and an exporter who furnishes a Letter of Undertaking may make supplies without paying IGST; otherwise IGST paid on advances can be claimed as a refund. A notification exempts goods suppliers (non-composition) from paying GST on advances but does not equivalently relieve service suppliers. (AI Summary)
Advances constitute the time of supply and ordinarily create a GST liability at receipt; suppliers of services are required to account for GST on advances. Exports of services are zero-rated, and an exporter who furnishes a Letter of Undertaking may make supplies without paying IGST; otherwise IGST paid on advances can be claimed as a refund. A notification exempts goods suppliers (non-composition) from paying GST on advances but does not equivalently relieve service suppliers. (AI Summary)