gst on advances

[kantipudi satyanarayana]

Pl clarify GST liability of a person registered under composition scheme u/s.10(2A) in respect of advances received for supply of services

[Alkesh Jani]

Shri

I am of the view that, in this case RP shall issue receipt voucher and shall discharge tax liability for the amount received as advance. For balance amount the tax liability shall be discharged when Invoice is issued.

AI Summary

GST Composition Scheme: Tax Liability for Advances Requires Receipt Voucher, Settlement on Invoice Issuance under Section 10(2A) A query was raised regarding the Goods and Services Tax (GST) liability for a person registered under the composition scheme under section 10(2A) concerning advances received for services. The response clarified that the registered person should issue a receipt voucher and discharge the tax liability on the advance amount received. The remaining tax liability should be settled when the invoice is issued.