IF I(COMPANY) RECEIVED AN ADVANCE AMOUNT AND INVOICE IS NOT BEEN RAISED SO WE HAVE TO PAY GST ON ADVANCE AMOUNT OR NOT?
Neha Chauhan (4 Points)
24 June 2017IF I(COMPANY) RECEIVED AN ADVANCE AMOUNT AND INVOICE IS NOT BEEN RAISED SO WE HAVE TO PAY GST ON ADVANCE AMOUNT OR NOT?
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 24 June 2017
Yes..You have to paid GST on invoice issued after 01.07.2017. Better you should issue invoice on or before 30.06.2017.
Naveen Kumar
(Accountant )
(72 Points)
Replied 24 June 2017
If u recived advance before 30/06/2017 (under supply of goods) u need not pay GST on advance. If u received advance after 01/07/2017 u need pay GST on advance under the GST what ever rate applicable (if u have paid GST on advance it will be setoff at the time of GST return
Ex: GST paid on advance
Advance-500000 GST rate @ 28%
=500000*28%=140000
after making invoice for full amt or partial amt.
full amt 1000000
GST = 1000000*28%=280000.
Alredy GST paid on advance Rs-140000
remaing payable balance is Rs-140000
(GST on Advance - GST on Invoice)= Final payment
140000-280000=140000
RAJA P M
("Do the Right Thing...!!!")
(127140 Points)
Replied 24 June 2017
| Originally posted by : Neha Chauhan | ||
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IF I(COMPANY) RECEIVED AN ADVANCE AMOUNT AND INVOICE IS NOT BEEN RAISED SO WE HAVE TO PAY GST ON ADVANCE AMOUNT OR NOT? |
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Dear Neha Chauhan.,
Your query is not cleared. But., In my view...
1. You are received advance before July, You cannot pay the Tax on Advance. Then, When you supply of Goods/Services at the time you can prepare the Invoice and pay if you have Tax liability in that particular Invoice...
2. If You ll be receive advance After July you ll be pay tax is must under GST ACT....
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