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Advance Received on 31.03.2021, Services not Rendered for Covid, GST Applicability

Ajay Pandey (Accounts & Finance) (51 Points)

18 May 2021  

Dear Experts,

Greetings!!!

I have One query, We have received Advances against Services Dated 31.03.2021, but due to lockdown and covid not able to render the Services. Which is still uncertain when we will render a service today 18.05.2021.

Here the problem is due to change in the Financial year and the amount received on the last date of F.Y. i.e.31.03.2021

1) Did we have to pay a GST on Advances Received?

2) if yes, GST liability will be computed from 31.03.2021 Or 30.04.2021 (assuming 30 Days). 

Kindly reply

Thanks in advance to expert team.


 4 Replies

Sourav (Student) (23870 Points)
Replied 18 May 2021

Yes GST to be levied on advance received.

31.3.21

CMA Poornima Madhava (CMA) (12987 Points)
Replied 18 May 2021

If invoice cannot be raised within 30 days from receipt of advance, GST has to be paid on advance against supply of services.

Ajay Pandey (Accounts & Finance) (51 Points)
Replied 18 May 2021

If We raise an Invoice on 25th April 2021, What will be the GST applicability on Advance i.e. 31.03.2021 or 25.04.2021

CMA Poornima Madhava (CMA) (12987 Points)
Replied 18 May 2021

In that case, no GST liability on advance. GST to be paid on the basis of invoice.


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