LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Advance received by composition dealer

Vishnu Das (145 Points)

16 April 2021

A composite service provider providing room services ,should he need to pay gst on advance received

Reply
Follow
Share

3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 16 April 2021

Discharging GST at one rate at the time of advance receipt and different rate applicable at the provision of service. Typical example could be at the time receipt of advance, hotel might have paid GST @ 18% but the room provided having a tariff between Rs. 1,000/- to Rs. 7,500/- where the rate of GST is 12%.

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 16 April 2021

Yes service provider needs to discharge gst liability on advance received

sabyasachi mukherjee (26039 Points)
Replied 17 April 2021

The concept says
that gst is payable if the following conditions are satisfied:
1. the intention of the individual dealing in goods or services.
2. for furtherance of business
3. the taxable person intends to receive advance for furtherance of business.
4. must raise invoice
5. but after full work has been completed.
He can raise gst.