GST liability

what is GST implications on forfeit of Advance money against export
Replies (6)
Quick Summary
This discussion clarifies the GST liability on forfeited advance money received for export transactions. While an advance for goods might not be taxable, an advance received for services is generally considered taxable under GST. This is because the forfeiture is seen as income arising in the course of business, even if the original supply didn't fully materialise.

Taxable
But it doesn't include in the definition of supply..
can you explain with provision
Sec.7 supply is a wider term and inclusive definition.

It includes all forms of supply...
And forfeiture of advance amount is absolutely in/during the course of business

Hence taxable.

Also please elaborate your query

Thank you
Yes, supply is wider term and inclusive definition but as per sec 7,for supply there must be supply of either good or service but in this case there is no supply of either goods or services so how it fall in the definition of supply
Firstly you might have received the advance amount against supply of service.
(no tax at the time of advance receipt against supply of goods)

Further, the same should be shown in P&L A/c as business income only and can not offer as other income.

Further more, it can not be ignored the origin nature of the transaction.

And it is the income against the forfeiture of supply of service in the course or furtherance of business.

Hence taxable.
Advance received against the goods in not taxable because as notification 66/2017. Where as in case of supply of service it is liable to pay tax against the advance please refer section 13 of CGST Act 2017 for more clarification

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