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GST on adv. payment received

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ganesh

proprietor

45 Points Posted on 07 March 2023

If in GST composition scheme, and receive advance amount for service for next five years, is GST payable on it?
or GST be paid on service amount each year?

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Quick Summary

If you're in the GST composition scheme and receive an advance payment for services to be rendered over several years, GST is generally payable on the services as they are executed each year. You should issue monthly or quarterly bills of supply for the services provided and adjust the advance payment proportionately in your accounts and GST returns.