Advances received before GST Registration

[Deepak Bihani]

Is GST applicable on advances received before GST Registration in a service organization for which service is rendered after the registration.

What if part advance is received before registration and part is received after registration.

[PAWAN KUMAR]

Dear sir,

As per my view since advance received prior to gst registration which taxability attract as per time of supply and hence gst is payable on the date of receipt of payment.

[KASTURI SETHI]

In this scenario, GST is applicable. Covered under Section 13 (2) (a) & (b) of CGST Act. Invoice is issued on or after 1.7.17. Service is supplied on 1.7.17 or after 1.7.17. Go through relevant Section/sub-sections.

SECTION 13. Time of supply of services. - (1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of services shall be the earliest of the following dates, namely :-

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under [* * *] section 31 or the date of receipt of payment, whichever is earlier; or

(b) the date of provision of service, if the invoice is not issued within the period prescribed under [* * *] section 31 or the date of receipt of payment, whichever is earlier; or

Q. What if part advance is received before registration and part is received after registration.

In this scenario also GST is applicable.

[Ganeshan Kalyani]

In simple terms, if two of instances happens in pre-GST time then old tax rate will apply. Otherwise, GST will be applicable. In your case, the advance (one instance) happened in pre-GST, and provision of service and raising of invoice happened post-GST. Hence, GST is applicable.

AI Summary

Time of supply: GST applies to advances when service provision or invoice occurs after registration, despite earlier payments. Advance payments before GST registration are governed by the time of supply rules: tax liability arises on the earliest of invoice issuance, provision of service, or receipt of payment. If the service provision or invoice issuance occurs after registration, GST applies even where an advance was received earlier; a pre-registration advance alone does not negate GST if other supply events occur post-registration.