Advance received on export of service - disclosure in GSTR-1

[Padmanathan KV]

A Registered Person is receiving advance on export of services (without payment of tax under LUT). Which column should the advance amount be disclosed in GSTR-1 and GSTR-3B?

[Ganeshan Kalyani]

Sir, since export is without payment of IGST under LUT the receipt of advance there is not liable to GST. As such the information of advance received is not required to be furnished in the return.

[Padmanathan KV]

Ld friend Ganesh Ji,

Following doubts still persists in my mind:

1. Export of service (which is zero-rated u/s 16 of IGST Act) still continues to be supply of service.

2. Time of supply of such service as per section 13 of CGST Act (read with 20 (iii) of IGST Act) is issuance of invoice or date of payment, which ever is earlier.

3. So when advance for export of service is received, isn't the time of supply u/s 13 attracted?

4. If yes, shouldn't it be declared somewhere in GSTR-1/GSTR-3B?

[Padmanathan KV]

Nevertheless, I profusely thank you for replying to my query Ganeshan Ji.

AI Summary

Advance receipt for zero-rated export of services may not require GST return disclosure, though time-of-supply implications persist. Whether advance payments for zero-rated export of services under a Letter of Undertaking must be disclosed in GSTR-1 or GSTR-3B: one reply states such advances are not liable to GST and need not be reported when export is under LUT without IGST payment; the questioner contends export remains a supply and that time of supply may be triggered by receipt of advance, querying whether that necessitates return disclosure.