Composite dealer - GST on advances

[kantipudi satyanarayana]

Sir,

Whether GST is payable on advances received by a composite service provider who is liable to GST @6% (w.e.f.01.04.2019) and at what rate if he is liable?

AI Summary

GST Payable on Advances for Composite Services at 6% from April 2019, Clarifies Consideration Under CGST Act A query was raised regarding whether GST is payable on advances received by a composite service provider liable to GST at 6% from April 1, 2019. The response clarified that GST is indeed payable on such advances as they are considered part of 'consideration' under the CGST Act. The time of supply of services, which determines GST liability, is linked to the receipt of payment or issuance of an invoice, whichever is earlier. Understanding the definitions of 'consideration' and 'time of supply of services' is crucial, and the terms of any agreement or contract are significant in determining GST obligations.