09 June 2017
We have paid our supplier an advance of Rs.5,00,000/- on 05/06/2017. Suppose if GST is in force from 01 july, what effect would it have on this advance ?
10 June 2017
As per section 142(10) of CGST Act, 2017, GST is will not attract to the extent of on which the VAT is leviable under the state Act, Under the VAT regime, the taxes payable only on sale of goods.In your case, There is no sale of goods but you have paid advance amount for sale Hence, if the goods are not sold to you on or before 30.06.2017 your liable for GST.
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