GST applicable Advance received from Customer

[Vivek anandhan]

Dear Expert

We are a manufacturer and annual turnover above 1.5 crore. If we receive advance whether we need to pay GST.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

I think advance will not attract GST

[Himansu Sekhar]

If it is for goods, no. GST

[Himansu Sekhar]

Notification No. 66/2017-C.T., dated 15-11-2017

 

[Himansu Sekhar]

As per the GSt concept & status released by the Department on 01.08.19

Para- 9.4.9 Payment of Tax: 9.4.9.1 There shall be no requirement on payment of tax on advances received for supply of goods by all taxpayers.

Please go through the entire paper. It is useful

[Vivek anandhan]

Noted, Thanks to all,

It is very clear that GST will not attract Advance for supply of goods.

Also whether we need to show advance received against supply of goods information in GSTR-1

[MUKUND THAKKAR]

Need not required show in GSTR-1, if advance received against supply of goods.

[KASTURI SETHI]

I support the views of all the experts.

[Ganeshan Kalyani]

Goods and services are taxed equal . So when there is lot tax on advance received toward supply of goods the the same exemption to apply for supply of service as well.

[Ganeshan Kalyani]

Please read "no" inplace of "lot".

AI Summary

GST Not Applicable on Advances for Goods, No Reporting in GSTR-1 Required, per Notification No. 66/2017-C.T. A manufacturer with an annual turnover above 1.5 crore inquired about the applicability of GST on advances received from customers. Experts in the forum clarified that advances for the supply of goods do not attract GST, referencing Notification No. 66/2017-C.T. and guidelines from the GST department. It was also noted that there is no requirement to report such advances in GSTR-1. The consensus among participants was that GST does not apply to advances for goods, and similar exemptions should apply to services.