Advance on payment received

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S HARI KRISHNA (Querist)
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17 November 2017 We are a Manufacturer cum merchant exporter. normally we works on Advance Payment both on domestic or exports.till now GST is applicable on Advance received. but i come to know that GST on advance received is abolished in 23rd GST Council metting. Please let me know whether it is correct or not. If correct please give the reference notification/Circular no.

Thanks & Regards
Hari Krishna

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2017 Yes it's correct see Notification 66/2017 -CT.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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17 November 2017 We receive advance for our Auditorium booking, so do we need to pay the GST?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2017 Yes you need to pay GST.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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17 November 2017 Can you tell how to treat the same? when should I raise the Invoice?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2017 Raise the invoice on receipt of advance as the receipt include GST.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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17 November 2017 if receive advances in three installment. so I will have to raise 3 invoices?

Aditya Agrawal

Aditya Agrawal (Expert)
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18 November 2017 When you receive advance, you need to give the “Receipt Voucher” and thats not a tax invoice. When the amount is received in installments, you will have to issue multiple receipt vouchers. The tax invoice will be required to be issued only on receipt of final installment or the when supply is made.

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Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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18 November 2017 while issuing receipt voucher do I need to show the tax paid amount? when party can claim the GST on same? at final invoice or regular receipt basis?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 November 2017 Agreed with the above reply.
You need to show GST paid in the receipt voucher so that ITC can be claimed by the person making advance payment.

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Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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18 November 2017 while raising invoice do I need to show the tax amount again?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 November 2017 Deduct the advance and show GST only for the balance amount.

RAJA P M

RAJA P M (Expert)
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18 November 2017 At the time of Supply / Making invoice you ll show the details as per the Supply value and Tax... Filing of GSTR 1 you ll less your liability as per your advance Tax...

Aditya Agrawal

Aditya Agrawal (Expert)
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19 November 2017 Yes you need to show the GST amount in the receipt voicher. Also, you should note that receipt voucher makes the recipient of advance money (i.e. the supplier of goods/services) liable to pay GST to government but the ITC on the same cannot be claimed by the payers unless the Tax Invoice of the said advances has been issued by the supplier of goods. So, the ITC will be available on the issuing of Tax Invoice which is a pre condition (out of the 12 basic condition) for booking ITC. Hope this helps ....

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
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19 November 2017 yes thank u sir. how to show the same in gstr1 or 3b

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