GST on advance from customer

[Kaustubh Karandikar]

XYZ (India) received advance from a customer from Russia towards supply of goods to Russia, but the contract got cancelled due to Russia – Ukraine war and therefore the advance was shown as other income in the books of accounts since not refunded to the customer. Whether XYZ is required to pay GST on it?

[Amit Agrawal]

NO, in my humble view, presuming that advance was so received in convertible foreign exchange in India.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

There would be no liability as the time of supply has not attracted

[Padmanathan KV]

I agree with the views of the experts. No GST shall be liable to be paid on the amount as supply has not fructified.