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Advance Receipt in Full / Part

30 May 2018

i) Suppose We have got an Full Advance Receipt of 10,000/- Against a Proforma Invoice Amounting Rs. 10,000/- on 29.05.2018 And the next day i.e. on 30.05.2018 We are generating the Final Invoice. Is the Advance Receipt subject to be Taxed? If so please explain.

ii) Suppose We have got Part Payment as Advance, say 6,000/- Against a Proforma Invoice Amounting Rs. 10,000/- on 29.05.2018 And the next day i.e. on 30.05.2018 We are generating the Final Invoice. Is the Advance Receipt subject to be Taxed? If so please explain.

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 30 May 2018

Both conditions GST not levied for the Advance receipts.

Vinod Babu (24196 Points)
Replied 30 May 2018

Agree with Raja sir.

Subhkaran Surana (343 Points)
Replied 31 May 2018

As per section 12 of the CGST Act, 2017, the time of supply in case of goods is the earlier of the two events:
1) issue of invoice( if issued as per section 31)
or
2) payment received

Thus , GST Is levied on advance receipt also and the supplier is required to issue RECEIPT VOUCHER as per section 31 of the CGST Act, 2017

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 31 May 2018

Yes... The section says about the GST paid on advance receipts...

*GST on Advance receipts applicable. But, the same way the Advance received in the month and Supply made in the same then GST not applicable in the Advance receipts. Dealer can treat GST based on invoices...

** Also GST not levied for Advance received against Supply of Goods. But, GST levied if Advance received against supply of Services.
- Notification no : 66/2017...

Ravi SADhiyan (Practice) (4510 Points)
Replied 31 May 2018

Originally posted by : Protection Controls
	i) Suppose We have got an Full Advance Receipt of 10,000/- Against a Proforma Invoice Amounting Rs. 10,000/- on 29.05.2018 And the next day i.e. on 30.05.2018 We are generating the Final Invoice. Is the Advance Receipt subject to be Taxed? If so please explain. ii) Suppose We have got Part Payment as Advance, say 6,000/- Against a Proforma Invoice Amounting Rs. 10,000/- on 29.05.2018 And the next day i.e. on 30.05.2018 We are generating the Final Invoice. Is the Advance Receipt subject to be Taxed? If so please explain.