GST on Advance received towards Export of Services without payment of IGST(Under LUT)

[Mahendra N]

Dear Sirs,

In case of export of services without payment of IGST mechanism, do we have to pay GST on advance received by the service provider from service recipient ?

Where LUT is also filed, and a zero rate supply of service is made, advance received in Aug 24 and Invoice raised in Dec 24.

Please advise

Thanks

AI Summary

Zero-rated supplies under LUT: No GST on advances for exported services, reporting required at time of invoice.
Advances for exported services made under a valid LUT are included within the statutory concept of consideration and the time of supply may be earlier of payment or invoice; however, where the export is a zero-rated supply effected under LUT, no GST is payable on the advance itself, although the transaction must be reported in returns at the time of invoicing and appropriate records maintained to substantiate the zero-rated treatment.