GST ON ADVANCE

This query is : Resolved

CA SANDIP HISARIYA (Querist)
Follow

23 December 2020 One E commerce company (ABC) into the business of Food delivery.

Rahul a customer place an order on 15th Dec, 2020 via ABC company website/APP to deliver food on 2nd Feb, 2021 as per his choice of restaurant and menu. Rahul paid full amount in advance on 15th Dec to ABC. Restaurant (XYZ) will deliver food on 2nd Feb, 2021 and will get payment from ABC after the delivery of Food as per agreement with ABC.

All the Payment received by ABC will park in there nodal Account. ABC will received there commission only after the delivery of food and XYZ restaurant also received amount from ABC nodal account after the delivery of food to customer.

Invoice will be issue by XYZ on the date of delivery of food. ABC will issue invoice to XYZ for commission after the delivery of food.

Note: As per RBI, nodal Account balance not part of ABC Books of accounts at any point of time.

In the above scenario. Is XYZ is liable to pay GST on advance payment received by ABC in there nodal account? How GST treatment will happen?

Thanks in advance.

Lekhraj sood

Lekhraj sood (Expert)
Follow

23 December 2020 No, GST is not required to be paid on the advance received by ABC. It is only receiving it as pure agent being parked in Nodal account.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Manish Tiwari

rajkumar yadav

THUSHAR MURALI KRISHNA

Abhishek Kabra

ASHOK KUMAR TEKURU

Subscribe Now

GST ON ADVANCE

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA