GST ON ADVANCE RECEIPTS FOR FINISHED GOOD ON SUPPLY

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0 Points Joined July 2024

Dear Expert,

We have manufacture unit in tamilnadu, on supplying of finished goods to our customer based on advance receipts, weather GST applicable on advance receipt to our factory

Kindly revert

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On 10 September 2024 at 11:55 Report
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Master in Accounts & high court Advocate
8883 Points Joined December 2011

In general, GST is not applicable on advance receipts for goods supply. However, there are specific scenarios where GST may apply: 1. *Supply of goods*: If you supply goods (finished or semi-finished) to customers based on advance receipts, GST is applicable on the supply of goods. 2. *Advance receipt for goods supply*: If the advance receipt is specifically for the supply of goods, GST is not applicable on the advance receipt itself. However, GST will be applicable when the goods are supplied. 3. *Composite supply*: If the advance receipt is for a composite supply (e.g., goods + services), GST may be applicable on the entire value, including the advance receipt. 4. *Services*: If the advance receipt is for services (e.g., installation, maintenance), GST is applicable on the services provided. To determine GST applicability in your specific case, consider the following: 1. *Review your contracts*: Examine your contracts with customers to understand the nature of the advance receipts. 2. *Identify the supply*: Determine whether the advance receipt is for goods, services, or a composite supply. 3. *Check GST rates*: Verify the GST rates applicable to your goods or services.

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On 10 September 2024 at 18:58


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