Generating response Copilot said: GST Advance Received - Rule 50(ii) Inter-State Supply but Place of Supply Unknown for GSTR-1 Reporting

[Abhijeet Mane]

Under Rule 50, if at the time of receipt of advance the nature of supply is not determinable, the supply is deemed to be an inter-State supply and IGST is payable.

However, while reporting such advance in GSTR-1, the system requires selection of the PoS (State) for interstate transactions.

If the nature of supply and consequently the actual place of supply is not determinable at the time of receipt of advance, which State should be reported in GSTR-1 for such advance liability?

AI Summary

GST advance reporting requires a place-of-supply State despite inter-State treatment where supply nature remains indeterminable at receipt.
GST advances received when the nature of supply is indeterminable are deemed inter-State supplies under Rule 50(ii), with IGST payable. GSTR-1 nevertheless requires a State to be selected as the place of supply for reporting inter-State advances. The compliance issue is which State should be disclosed where the actual place of supply remains unknown at the time of receiving the advance.