sir. my client is a contractor for provision of service. He receives advance and lator on after completion of work he will raise the invoice. now when i receive advance , i have to discharge the GST and the same is to be reported in GSTR 1 under advance received tab and when we raise the invoice, then we will make adjustment - right.
but the customer wants the GST credit at the time of advance only, how it is possible?.
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Advance amount received on services
Replies (10)
Gst credit cannot be taken on payment of advance.
Only upon receive of goods and services.
Hence Gst on advance payment cannot be taken
Only upon receive of goods and services.
Hence Gst on advance payment cannot be taken
he can't claim itc before completion of service
but the client is raising the invoice wh en mobolisation advance is received. hence, there by there is an invoice and hence GST charged. is it cirrect.
yes in case of services G.S.T is charged on advances also. however service recipient can claim itc after completion of service.
Gst will be application on advance received from customer incase of service.
Supplier book the tracsation in 3b as well r1. Itc will not allow with out complete of work and with out bill. So please check accordingly this
Supplier book the tracsation in 3b as well r1. Itc will not allow with out complete of work and with out bill. So please check accordingly this
sir. as well R1 means should it be shown under advances or under b2b transaction.
under advances it is to be shown.
good clarification
No.
As per Section 16 of CGST Act, 2017, a recipient can claim ITC provided:
1. Possession of tax invoice/debit note issued by supplier
2. Goods/services have been actually received.
In your case neither a tax invoice has been raised (receipt voucher to be issued by supplier for advance received does not constitute as tax invoice) nor the service has been rendered as of yet.
good clarification and information
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