Advance receipt by composition taxpayer

if a composition taxpayer receipt advance against supply to be made. whether he is eligible to pay tax on advance receipt?
Replies (5)
Quick Summary
This discussion clarifies whether a composition taxpayer must pay GST on advance receipts for goods. While initially some notifications suggested no GST on advances for goods, further clarification indicates that composition dealers are indeed liable to deposit GST on advances received against the supply of goods. This applies regardless of aggregate turnover, as per relevant Central Tax notifications.

Composition dealer can't collect tax from recipient.
No... No need to pay GST Tax for advance receipt against supply of goods.
As per Notification 40/2017 CT , DTD. 13/10/2017 no gst on adavance against Goods ,for Tax payer having Agrregate turnover less 1.5 crore , This facility was extended to all registered person without any threshold limit vide Notification 66/2017 CT dtd 15/11/2017
Hence No GST Applicable on advance receipt towards supply of Goods
I have read the Notification No.40/2017 Central Tax (Rate) dtd.23-10-17, which states about concessional Central tax of 0.05% in the exports sales which are sent directly to ICD etc.

Composite Dealer is Specific Excludes from N/F no. 66/2017
Dear Abhishek
I have mentioned the Notification 40/2017 CT & your mentioning Notification 40/2017 CT (Rate) .
Do refer CT not CT (rate).

Yes you are correct the composition dealer is liable to deposit GST on advance against supply of good and it's prescribed in both Notification 40,66/207 (Both are of CT)

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