Tax payable on GST

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As a real estate agent, you're wondering when to deposit GST to the government. Under GST rules, tax is generally payable upon raising an invoice or receiving payment, whichever comes first, not necessarily when the client actually pays you. This means you might have to pay GST even on advances received, which can feel like your money is being held up.

Rudraansh Arohra

Rudraansh Arohra (Querist)

05 July 2021 I am a Real Estate Agent and I am rendering services to a developer or to a client. The question now comes is when wil I have to deposit GST to the government. Only after receiving from the developer or client or when I am raising an invoice. If in case the developer or client does not make me a payment then why should I pay in advance the gst

Gokul Sharma

Gokul Sharma (Expert)

05 July 2021 Receiving of payment is not the concern of government it's your responsibility to recover GST TAX...

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

05 July 2021 Under GST, there is no concept of payment of tax on receipt basis. The supplier has to be pay tax upon invoice. Further, in case of services, tax has to be paid even on advances received if the invoice is not raised within the time limit specified.

CA Altamush Zafar

CA Altamush Zafar (Expert)

05 July 2021 You will have to pay gst on raising invoice or receiving payment whichever is earlier.

Rudraansh Arohra

Rudraansh Arohra (Querist)

07 July 2021 The replies are astonishing, the developer does not pay even for months at times then what is the solution to it. Our money is blocked up under GST. Moreover if there is no security of refund of GST on invoice raised how will it solve the issue

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