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

Clarification Sought on Reporting Advances for Export Services Under LUT in GSTR-1 and GSTR-3B; GST Liability Unclear A registered person inquired about the disclosure of advance received on export of services in GSTR-1 and GSTR-3B, specifically when the export is without tax payment under a Letter of Undertaking (LUT). One respondent clarified that such advances are not liable to GST and thus do not need to be reported in the returns. However, the inquirer expressed concerns about the time of supply rules under the GST Act, questioning whether such advances should still be declared, citing sections of the CGST and IGST Acts. The discussion remains unresolved with further doubts expressed.