Confusion regarding dates of supply and invoicing.

153 views 4 replies

Reena

Partner

221 Points Joined June 2017

We got a project to make a corporate film in June. We receieved 50% advance in June. We started the project in July. We were not registered for GST as ours is a new firm. The project is inter-state. The project is still going on. We have received further 25% on 4th of August. We had issued Pro-Forma invoice for both the payments without adding GST, but had told them that we will charge GST once we get GSTIN.

We just received GSTIN today. We'll soon issue them with the GST invoice. But we have already received 75% of the payment. Should we write on the invoice about advance received? And when will the return be due? Will it be due on 10th September? Or do we have a file a areturn by tomorrow as we have just received out GST today and it is 9th, regarding the payment received in June. There is a lot of confusion regarding that.

Please help in this regard! Thanks.

Replies (4)

kamalarao pamula

135 Points Joined August 2017

payment received in the month of June donot qualify for taxation. under GST act due the reason the Act itself was in force during June. hence the provisions cannot be invoked for the amounts received in June. however the amount received up to date can be billed in August return payable in Sept

Reena

Partner

221 Points Joined June 2017

Thanks a lot for your reply. But when we issue invoice, do we charge GST on the whole amount or just the 50% as 50% was received in June. The confusion is that if date of supply is taken as the date on which invoice was raised, then the service was provided during GST regime even though 50% was received in June. So will GST be chargeable on the whole amount or just 50% which will be received in August? Thanks again!

Guest

how much advance received in june

Reena

Partner

221 Points Joined June 2017

The total amount is 5.5 lakh. Advance was 50%. They deducted 10% TDS. So the amoutn received was Rs 2,475,000. They paid 25% (- 10% TDS) in August. So the balance is 25% which will be paid post delivery of the film, which should be in August.