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Gst on advance payment.

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This query is : Resolved

Purnima (Querist)

14 August 2017 In case of advance payment done to supplier,he is supposed to issue receipt voucher and pay gst on the same to govt.But what if supplier makes payment of gst as and when tax invoice is issued say for e.g after two months and not while receiving adv payment.Will there be any implications of the same on buyer..i mean in anyway he is going to get ITC only when he is in possession of tax invoice and will not be getting any ITC of gst paid on advance by supplier.

RAJA P M

RAJA P M (Expert)

14 August 2017 Receiver is pay tax for the advance. Giver is no more action taken the advance payment. He can receive and safe the receipt. After received the supplies then only he can get ITC. Otherwise he not done.

The receiver/Supplier ll be pay tax on advance received. After paid he can take reverse the payment of GST in advance related payment as per ERN....or his Advance receipt no...

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