Impact of GST on advances/security deposit etc.

FCS Deepak Pratap Singh | Last updated: 02 April 2020

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The Goods and Services Tax (GST) in India has unified indirect taxation, removing the cascading effect of previous taxes. This article clarifies how GST treats advances and deposits. While advances are generally considered consideration and subject to GST upon receipt or invoicing, deposits are only subject to GST if they are applied towards the supply. The article details specific treatments for mobilization advances, material advances, and retention money, explaining when GST liability arises and how Input Tax Credit (ITC) is handled.

One of most important decisions taken by Central Government is the implementation of Goods and Services Act, 2017 all over India. Implementation of GST has been done to remove anomalies in previous VAT/Services Tax and other taxes. In previous tax regime, end users were enforced to pay tax on taxes.

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About the Author

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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