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Considered as supply or not

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Bhargav Nirmal

107 Points Posted on 26 May 2020

if any supply received advance money so advance payment is considered às a supply as per section 15(2) because supply for that amount is not derived to recipient ?

Replies (2)

Quick Summary

This discussion clarifies the application of GST on advance payments. For goods, GST is generally not applicable on advance payments received, as per current provisions. However, for services, GST is applicable on advance payments received. Section 15(2) of the CGST Act does not prescribe GST on advances, with specific notifications providing exemptions for goods under certain circumstances.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 26 May 2020

No....
GST Applicable on advance is not treated as supply. Actually the liability to pay tax on goods or services are prescribed in Section 12 & 13 of CGST Act
Section 12 of CGST Act
Time of Supply Goods : Advance received against supply of goods no GST is applicable as of today . This provision was put in abeyance for registered person whose aggregate turnover not exceeding 1.5 crore other than composition dealer , vide Notification 40/2017 CT ef 13/10/2017, then Vide Notification 66/2017 ,e.f 15/11/2017 this benefits was extended all other registered person .

Section 13 of CGST Act :
Time supply of Services : Advance received against supply of Services, GST is applicable.

Note : Section 15(2) did not Prescribe GST on advance Reced.