Advance against supply of goods

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Regarding advance payments received for the supply of goods, GST is generally not applicable at the time of receiving the advance. Instead, GST should be calculated and paid based on the tax invoice issued when the goods are supplied. This is due to a waiver provided by Notification 66/2017, which exempts advances for goods from immediate GST charges.

seeta

seeta (Querist)
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18 May 2021 I have received advance 200000/- on 30/04/2021 and material sale on 05/05/2021.

while filling gst return of april '21 we have to charge gst on advance of Rs.200000/- .

If yes than how much

If no please share the reason.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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18 May 2021 GST Rate will be the rate of goods and calculate Rate as Advance Amt is including GST Amt i.e assuming rate of goods is 18%
So GST will be 200000 x 118/100 will be the gst amt

seeta

seeta (Querist)
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18 May 2021 Sir where we have shown in GSTR-1

In GSTR-3B

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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18 May 2021 You don't have to pay GST on advance received against sale of goods. You may pay GST on the basis of invoice.

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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18 May 2021 No gst on advance for goods. Pay gst on issue of invoice.

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CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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18 May 2021 Sorry for misinterpretation

Expert Opinion is correct GST on advance for supply of goods is waived by Notification 66/2017

I rectify my opinion expressed earlier

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