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 on advances for supply of goods: no tax liability and no requirement to report such advances in GSTR-1.
Contributors concluded that advances received for supply of goods do not attract GST and that taxpayers need not pay tax on such advances; accordingly, advance receipts against supplies of goods need not be reported in GSTR-1. A view was also noted suggesting equivalent treatment for services, but the operative consensus relates to goods.