When The Contractor Changes But The Advance Remains: A GST Perspective On Contract Novation

, Last updated: 16 March 2026 Share Follow on Google News

In large infrastructure and service contracts, advances are often paid long before the first unit of service is delivered. Under the GST framework, however, tax liability may arise at the very moment such advances are received. The situation becomes more complex when the contract itself changes hand

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About the Author

Raj Jaggi

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CA. Raj Jaggi is a Chartered Accountant based in New Delhi, primarily practising in the field of Goods and Services Tax (GST) consultancy, litigation support, and advisory services. After being associated with the leading indirect tax firm A.K. Batra and Associates for nearly 19 years, from June 2007 to March 2026, he ... Read more

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