GST Annual Return

Service provider receiving advance must pay GST on the advance received.So pay GST with interest.

Show as an advance received and show figures in table 4 and pay gst through drc-03

Fake bill generate

Supply includes transaction "MADE OR AGREED TO BE MADE". Therefore Advance Received is also taxable under GST.

However W.E.F 15th November 2017 ( Notification No. 66/2017 - Central Tax, dated 15.11.2017 ), Advance Received on Supply of Goods is not chargeable to GST. Therefore only Advance Received with respect to Supply of Services attracts GST at the time of receiving such Advance.

Therefore you have to pay GST on Advance Received from the debtor in excess of Rs. 3 lakhs along with Interest @ 18% via Challan DRC-03 from the month when it was credited to your Bank Account ( you need to issue a Receipt Voucher to your Debtor ).