Tax payment
This query is : Resolved
18 September 2017
Dear Experts
We have raised invoice by charging 18% gst in the month of August however we have recd only 30 % payment from the party till 15 sept..the supply of service is already completed & this 30% is not an advance.
So weather we have to pay GSt on 30% i.e amt recd or on Invoice Amt..??
Regards
Priyank
We have raised invoice by charging 18% gst in the month of August however we have recd only 30 % payment from the party till 15 sept..the supply of service is already completed & this 30% is not an advance.
So weather we have to pay GSt on 30% i.e amt recd or on Invoice Amt..??
Regards
Priyank
CA Rashmi Gandhi
(Expert)
18 September 2017
You have to pay on invoice amt
18 September 2017
Thank you Mam..
But this is something harsh provision for Supplier because Even if he doesn't received a single penny of Rupees he still have to pay tax from his pocket..
But this is something harsh provision for Supplier because Even if he doesn't received a single penny of Rupees he still have to pay tax from his pocket..
CA Rashmi Gandhi
(Expert)
18 September 2017
Yes its wrong but there is also provision in act that of you dont receive amt within 6 month you have to reverse such amt..
18 September 2017
Ok. Can you plz refer me that section also.
And thank you for solving my Concerned issue.
And thank you for solving my Concerned issue.
CA Rashmi Gandhi
(Expert)
18 September 2017
Will reply you shortly.
26 July 2025
Hi Priyank,
The relevant provision under GST regarding payment of tax on invoice value even if full payment is not received is as follows:
* **GST is payable on the invoice value at the time of supply**, regardless of whether you have received the payment or not. This means you need to pay GST on the full invoice amount when you raise the invoice.
* However, **if the payment is not received within 6 months from the date of issue of invoice**, you have to **reverse the proportionate Input Tax Credit (ITC)** availed on that amount. This is covered under **Section 34(3) of the CGST Act, 2017** (similar provisions in SGST and IGST Acts).
In other words:
* You pay GST upfront on the invoice value.
* If you don’t receive payment within 6 months, you reverse ITC on the unpaid amount, and when payment is finally received, you can reclaim the ITC.
This mechanism ensures tax is paid upfront but also provides relief if payment remains unrealized for a long time.
---
The relevant provision under GST regarding payment of tax on invoice value even if full payment is not received is as follows:
* **GST is payable on the invoice value at the time of supply**, regardless of whether you have received the payment or not. This means you need to pay GST on the full invoice amount when you raise the invoice.
* However, **if the payment is not received within 6 months from the date of issue of invoice**, you have to **reverse the proportionate Input Tax Credit (ITC)** availed on that amount. This is covered under **Section 34(3) of the CGST Act, 2017** (similar provisions in SGST and IGST Acts).
In other words:
* You pay GST upfront on the invoice value.
* If you don’t receive payment within 6 months, you reverse ITC on the unpaid amount, and when payment is finally received, you can reclaim the ITC.
This mechanism ensures tax is paid upfront but also provides relief if payment remains unrealized for a long time.
---
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Section 269ST applicability for capital introduced by partner to his partnership firm
- Advances to related party
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
