Advance received for supply of goods

[SUBRATA RAY]

My query is whether a composition dealer is liable to pay tax on advance received for supply of goods in future. whether Notification No 66/2017 has excluded composition dealer from exemption of payment of tax on advance receipt from supply of goods

[Pradeep Reddy Unnathi Partners]

Yes Notification No 66/2017 has excluded composition dealer, therefore applicable GST has to be upon receipt of advance.

[KASTURI SETHI]

Yes. Exemption is not admissible. There is not even an iota of doubt.

AI Summary

Tax on advance receipts: composition dealers must pay GST upon receiving advance for future supply of goods.
A composition dealer is not entitled to exemption from tax on advance receipts; GST is payable upon receipt of advance for future supply and the advance receipt constitutes the taxable event requiring tax discharge and return compliance.