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

Inter-State advance supply classification requires IGST, but unresolved place of supply creates a GSTR-1 reporting gap.
Advances received where the nature of supply is indeterminable are treated as inter-State supplies and liable to IGST, but no deemed State is prescribed for the place of supply. GSTR-1 nevertheless requires a State selection. Where identifiable, the recipient's State may be reported if the prospective supply can reasonably be linked to it, subject to applicable PoS provisions and facts. If no actual or reasonably connected State can be identified, no express default State exists; the advance should later be reconciled with the actual PoS.