TaxTMI 
TaxTMI 
Advance received from the customer which includes value + GST in the month of August’21 and goods supplied against the same in the month of October’21. Is the supplier required to pay interest since the goods not supplied in the same month? In my view yes, since the advance received is with GST and goods not supplied in the same month. Views of the experts please.
GST on Advance
28 Oct 2021 
17 Replies 
7979 Views Asked by
GST on advance payments may be required to be remitted when collected, with limited postponement under notification for goods.
The document addresses whether GST collected on advances must be deposited when received or may be deferred until supply; one position requires remittance on receipt with interest for delay, while another relies on a notification permitting postponement for advances relating to goods until invoice or removal, with services generally requiring grossing up. Contributors stress that any postponement is limited by permitted return/payment timelines and that amounts collected as tax should not be retained beyond those limits. (AI Summary)
The document addresses whether GST collected on advances must be deposited when received or may be deferred until supply; one position requires remittance on receipt with interest for delay, while another relies on a notification permitting postponement for advances relating to goods until invoice or removal, with services generally requiring grossing up. Contributors stress that any postponement is limited by permitted return/payment timelines and that amounts collected as tax should not be retained beyond those limits. (AI Summary)