TaxTMI 
TaxTMI 
MY CLIENT IS BUILDER WHO RECEIVED RS 20 LAKH BOOKING AMOUNT FROM CUSTOMER AND EXECUTED AGREEMTNT TO SALE OF 70 LAKH. IN THIS CASE WHAT IS VALUE OF SUPPLY ?
CAN HE PAY NOW ONLY ON 20 LAKH?
GST ON SALE OF RESIDENTIONAL UNITS BY BUILDER
03 Mar 2021 
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Time of supply: GST on advance payments arises on receipt, requiring receipt vouchers and adjustment or refund mechanisms.
Time of supply arises when an advance is received, making that advance taxable at that time unless an exemption shifts time of supply to invoice date; advances must be evidenced by a receipt voucher, provisionally taxed at a default rate if rate or nature is indeterminate, and tax paid on advances is adjustable against later invoices or refundable. Agreements to sell do not constitute tax invoices. Procedural requirements include separate advance accounts, specific return reporting of advances and adjustments, and issuance of refund vouchers or credit notes where supplies are not completed. (AI Summary)
Time of supply arises when an advance is received, making that advance taxable at that time unless an exemption shifts time of supply to invoice date; advances must be evidenced by a receipt voucher, provisionally taxed at a default rate if rate or nature is indeterminate, and tax paid on advances is adjustable against later invoices or refundable. Agreements to sell do not constitute tax invoices. Procedural requirements include separate advance accounts, specific return reporting of advances and adjustments, and issuance of refund vouchers or credit notes where supplies are not completed. (AI Summary)