REGARDING ADVANCE RECEIPT.

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This discussion clarifies whether advance payments received for construction are considered part of a business's turnover. It confirms that GST is applicable on advance receipts even before the property is occupied. The promoter must pay GST on the advance and then adjust this liability when the final supply is made.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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29 January 2020 WHETHER ADVANCE RECEIVED REGARDING CONSTRUCTION IS INCLUDED IN DEFINATION OF TURNOVER..?? WHETHER IT ATTRACTS LIABILITY FOR GST AUDIT.?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 January 2020 It will be part of turnover liable for GST.

Amol S Joglekar

Amol S Joglekar (Expert)
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30 January 2020 As and when an advance is received for a flat before Occupation Certificate, the promoter is required to pay GST on advance and need to adjust with the tax liability when actual supply is made.

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