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Advance receipt by composition taxpayer

23 April 2020

if a composition taxpayer receipt advance against supply to be made. whether he is eligible to pay tax on advance receipt?

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5 Replies

Avinash Kumar (CA-Final Students) (192 Points)
Replied 23 April 2020

Composition dealer can't collect tax from recipient.

RAJA P M ("Do the Right Thing...!!!") (127387 Points)
Replied 23 April 2020

No... No need to pay GST Tax for advance receipt against supply of goods.

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 23 April 2020

As per Notification 40/2017 CT , DTD. 13/10/2017 no gst on adavance against Goods ,for Tax payer having Agrregate turnover less 1.5 crore , This facility was extended to all registered person without any threshold limit vide Notification 66/2017 CT dtd 15/11/2017
Hence No GST Applicable on advance receipt towards supply of Goods

Abhishek trivedi (student) (35 Points)
Replied 23 April 2020

I have read the Notification No.40/2017 Central Tax (Rate) dtd.23-10-17, which states about concessional Central tax of 0.05% in the exports sales which are sent directly to ICD etc.

Composite Dealer is Specific Excludes from N/F no. 66/2017

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 23 April 2020

Dear Abhishek
I have mentioned the Notification 40/2017 CT & your mentioning Notification 40/2017 CT (Rate) .
Do refer CT not CT (rate).

Yes you are correct the composition dealer is liable to deposit GST on advance against supply of good and it's prescribed in both Notification 40,66/207 (Both are of CT)