TaxTMI 
TaxTMI 
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?
Composite dealer - GST on advances
04 Jul 2019 
1 Reply 
3093 Views Asked by
GST on advance payments arises where advances constitute consideration, taxed at the time of supply under time of supply rules.
Advances for future services constitute consideration when linked to the supply and are taxable; a deposit is excluded unless applied as consideration. Tax liability on such advances arises under the time of supply of services rules, which determine the earliest triggering event (invoice issuance/payment/provision/recording). Contract terms and facts determine treatment. (AI Summary)
Advances for future services constitute consideration when linked to the supply and are taxable; a deposit is excluded unless applied as consideration. Tax liability on such advances arises under the time of supply of services rules, which determine the earliest triggering event (invoice issuance/payment/provision/recording). Contract terms and facts determine treatment. (AI Summary)