GST liability on Advance receipts

[Himanshu Bhardwaj]

Dear Professional Colleague ,

We are filling quaterly GSTR-1. What will be the the treatment of advance received in say, February 2020 in GSTR-3B for which supply of service will be made in March itself. Do we need to deposit tax on such advance before filing 3b of February?

[Ganeshan Kalyani]

Yes, you are required to pay GST in the February month's GSTR 3B.

[KASTURI SETHI]

I concur with the view of Sh.Ganeshan Kalyani Ji. Covered under Section 13 (2)(a) of CGST Act,2017.

AI Summary

GST on advances: tax due in the month of receipt and must be paid in that month's return.
Advances for future services create GST liability in the period of receipt and must be reported and paid in that month's GSTR 3B, even if the supply occurs later; this follows the time of supply rule treating receipt of advance as a taxable event and must be reconciled with quarterly GSTR 1 filings.